The Transition of Learning Mode with NPD in Chinese Firms

Organizational learning is very important for innovative search performance in NPD activities. Most of Chinese firms started product innovation from foreign mature technology acquisition to adoption and finally innovated with own emerging technology. In this process, dominant learning mode should change from exploitation to exploration. This article provided a narrative of learning mode transition process and proposed propositions about this transition: 1)from knowledge exploitation to exploration is a process across innovation cycle, which can generate continuous innovation 2) exploitation is the dominant mode after the external technology acquisition and exploration is the dominant mode after own emerging tech R&D; 3) SBU management and R&D collaboration will be introduced in the period from exploitation to exploration 4) the time of product search across exploitation and exploration is much longer than the time of product search in one learning mode. Transition of learning mode is very important for innovative firms’ continuous innovation in developing countries like China and Korea.