U.S. companies have the edge when compared to China in terms of innovation and developing market knowledge, says a new study by Michigan State University.
"These findings are encouraging for U.S. companies given the increased international competitiveness that China and its companies are showing globally," says Tomas Hult, a professor of marketing at Michigan State and co-author of the study.
Hult says the research team conducted parallel studies of U.S. and Chinese companies, focusing on comparisons of how well companies are market-oriented and their competence to drive innovation. The researchers defined being market-oriented as how well a company identifies and meets the wants and needs of its customer. He says a company's success depends on the value it creates using its market knowledge competence.
The researchers also found that leading U.S. companies are also better at using knowledge about competitors to be innovative in the global marketplace. However, the researchers say Chinese firms remain strong competitors for other reasons.
"While U.S. companies are innovative we still have to keep in mind that Chinese companies are very efficient in delivering global products," says Roger Calantone, a professor of business at Michigan State and co-author of the article.
The article appears in the International Journal of Research in Marketing.