Purpose The purpose of this paper is to reveal the pattern between government innovation funding and enterprise value creation. Many factors, including government innovation funding, R&D ability, corporate governance and some company characteristics significantly affected the efficiency of firm value creation. Design/methodology/approach This paper proposed a novel methodology based on clustering-rough sets to explore the characteristics of enterprise value creation behavior, and map the relationship between government innovation funding and enterprise value creation. The agglomerative hierarchical clustering (AHC) algorithm were used to classify firm performance and get two types of value creation efficiencies and to discretize condition attributes because the rough set theory cannot deal with continuous attributes. This paper utilized the rough sets method to realize data mining and get rules of government innovation funding and enterprise value creation. Findings R&D ability, proportion of independent directors, remuneration of directors, operating revenue, number of employees, price-earnings ratio, quick ratio, capital intensity and ROA were important to identify firm value creation efficiency when government funded the firms. Firms of high level of government innovation funding, high lagged R&D ratio, high remuneration of directors, low price-earnings ratio, low quick ratio, moderate capital intensity and high ROA were more likely to have high efficiency of value creation. Originality/value Since China implemented the innovation-driven development strategy, facilitating enterprise innovation has become an important way to achieve high-quality economic growth. With constantly increasing of Chinese government innovation funding, studying on the effect of government innovation funding on firm’s value creation is significant to improve the efficiency of government resource allocation. It is valuable to reveal the pattern between government innovation funding and enterprise value creation based on the value added theory. The rules obtained could be used to provide decision-making support to improve the efficiency of government innovation funding and prevent waste of government resources effectively.
This study aims to illustrate how intellectual capital (IC) dimensions can improve corporate performance, and explore ideal IC combination methods in diversified firm situations to distribute IC dimensions effectively with limited resources. A universal theoretical framework based on Balanced Scorecard (BSC) theory is proposed to illustrate the way in which IC dimensions can enhance corporate performance from the perspective of stakeholders. Then, the rough set method is introduced to empirically explore ideal IC combination methods in diversified situations using 539 valid samples from China's information technology industry. The theoretical analysis shows that IC dimensions work as a combination rather than as isolated parts to affect corporate performance, and different levels of corporate performance can be achieved by different IC combination methods under diverse firm factors. Ideal IC combination method is obtained through empirical study. Relational capital is the most important IC dimension, whereas leverage is the most important influence factor. This study extends IC management theory by profoundly illustrating the internal logical between IC dimensions and corporate performance through the theoretical framework. Additionally, this study introduces the rough set method to IC empirical research to explore ideal IC combination methods. Findings will deepen insight of practitioners about the essence of IC dimension combinations to corporate performance, and how they can apply the IC combination results to effectively distribute IC resources in diversified firm situations. The theoretical and practical research of this study extends both the third and fourth stages of IC research. INDEX TERMS Intellectual capital (IC), IC combination method, balance scorecard (BSC), IC dimension and corporate performance theoretical framework, the rough set method.
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