Asian Journal Of Social Pharmacy

Abstract: Objective To provide references and suggestions for the future innovation model for traditional Chinese medicine (TCM) enterprises, and to promote the modernization and the innovative changes of these enterprises through identifying the incremental innovation and analyze how different types of complementary assets adjust the relationship between incremental innovation and enterprise performance. Methods Pooled OLS model was used to make an empirical study on the relationship between the incremental innovation and the performance of the listed TCM enterprises and the regulating effect of different types of complementary assets. Results and Conclusion As far as the current complementary assets are concerned, manufacturing-specific complementary assets and marketspecific complementary assets are positively affecting the incremental innovation of enterprise performance, while manpower-specific complementary assets do not have a regulatory role. TCM enterprises should adhere to the mode of incremental innovation and use their own complementary assets to improve enterprise performance.

Key words: incremental innovation, complementary asset, enterprise performance