Author: Yi ZHANG & Thomas M. BEGLEY

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Abstract: In this study, we integrate three concepts: perceived organisational climate, knowledge
transfer, and individual innovation. Relationships of organisational climate with innovation
have been studied mainly in Western countries. We test three sets of hypotheses that compare
two groups of Chinese research and development (R&D) professionals: those working for
Chinese companies (CCs); and those working for China-based subsidiaries of U.S. companies
(ACs). The findings support two conclusions: 1) organisational climate constructs show
relevance in China and 2) company origin matters: the two groups of Chinese professionals
show somewhat different patterns of climate-knowledge transfer-innovation relationships.