Journal of Chinese Entrepreneurship

Purpose – As globalization increasingly affects the university sector around the world, there is a great advantage being placed on those universities that can respond timely and flexibly with appropriate innovation and internationalization strategies. The purpose of this paper is to review the literature of strategic aspects of innovation and internationalization in higher education. Based upon the premises of the Salford Prime Minister's Initiative 2 (PMI2) project, this paper aims to develop a theoretical framework which demonstrates how various objectives of innovation and internationalization can be translated and achieved in a learning organization context.

Design/methodology/approach – Theoretical analysis supported by empirical experiences. The paper explores the ideas and links between globalization and innovation/internationalization in higher education. The main concern of the paper is the implementation strategy of innovation and internationalization rather than the concepts and process of innovation and internationalization in higher education.

Findings – With examination of the impact of globalization upon higher education and strategic aspects of innovation and internationalization, this paper focuses on the implementation of innovation and internationalization and how to translate the overall institutional strategy into managed objectives. Organizational learning not only asserts and promotes organizational outcome and improved performance but also plays a significant role in achieving innovation and internationalization, e.g. staff engagement, staff motivation, empowerment, leadership and configuration. Furthermore, the paper identifies a number of strategic elements which are crucial to the successful implementation strategy of innovation and internationalization. The paper is based on the Salford PMI2 project and how various objectives were implemented which demonstrates the significance of collaboration in higher education between China and the UK.

Originality/value – Based on a comprehensive examination of the theoretical elements on innovation and internationalization and critical analysis of the Salford PMI2 project, adapting a typology of learning organizational framework, this study emphasizes the significance of incorporating both cultural and organizational learning factors. The paper develops a theoretical framework which enables policy makers and decision makers to make appropriate arrangements in designing international development strategy. Furthermore, the paper addresses the appropriateness and effectiveness of knowledge transfer, individual and organizational learning during the implementation of the internationalization strategy.