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 US 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.