State Ownership and Firm Innovation in China: An Integrated View of Institutional and Efficiency Logics

Zhou, Kevin Zheng; Gao, Gerald Yong; Zhao, Hongxin

doi:10.1177/0001839216674457

Cited by 788 publications

(763 citation statements)

References 93 publications

Supporting

Mentioning

661

Contrasting

Unclassified

Order By: Relevance

“…A large number of studies have used R&D expenditures divided by firm sales as a measure of R&D intensity that can be viewed as the input of firms' R&D activities (Lee and O'Neill 2003;Zhang et al 2007). Sales of new product sales has been used as an innovation performance measure (Berchicci 2013;Cassiman and Veugelers 2006;Escribano et al 2009;Love et al 2009;Kafouros et al 2015;Tsai 2009;Zhou et al 2016) because it represents the success of new or significantly improved products in the market. The census data provide information on revenue from new or significantly improved products that can be viewed as the output of firms' R&D activities.…”

Section: Methodsmentioning

confidence: 99%

“…For transitional economies, Li et al (2013) SOEs can afford to engage in innovation due to resource slack. Zhou et al (2016) also found that state ownership enables firms to gain more resources to invest in R&D activities.…”

Section: Ownership Types and Firms' Innovation: Institutional Theory mentioning

confidence: 96%

“…Previous literature indicated that resource availability is critical for R&D intensity and innovation performance (Chen et al 2014;Zhou et al 2016). R&D is a long horizon investment and it may take a long term before the payoffs are realized.…”

Section: Ownership Types and Firms' Innovation: Institutional Theory mentioning

confidence: 99%

“…In transitional economies, the government controls most of the key resources (Musacchio and Lazzarini 2014). R&D is encouraged at central government-owned SOEs because its ownership nature secures capital supply and government subsidies (Zhou et al 2016). Sufficient resources buffer the organization from the uncertain success of those risky projects (Stan et al 2014).…”

Section: Ownership Types and Firms' Innovation: Institutional Theory mentioning

confidence: 99%

See 3 more Smart Citations

Impact of ownership types on R&D intensity and innovation performance—evidence from transitional China

Teng

2017

Front. Bus. Res. China

View full text Add to dashboard Cite

This paper examines the effects of ownership types on firms' R&D intensity and innovation performance, using a sample of 357,857 Chinese firms from 2005 to 2007. This study finds considerable divergence among Chinese domestic enterprises in terms of R&D intensity and innovation performance. We find that firms owned by the central government are the key drivers for firms' R&D activities, while local government, private and foreign ownerships are negatively related to both R&D intensity and innovation performance. This paper finds significant divergence within government ownership category and argues that China's institutional changes generate varied government ownership groups with different levels of resource endowment, which in turn influence firms' R&D activities.

show abstract

Section: Methodsmentioning

confidence: 99%

Section: Ownership Types and Firms' Innovation: Institutional Theory mentioning

confidence: 96%

Section: Ownership Types and Firms' Innovation: Institutional Theory mentioning

confidence: 99%

Section: Ownership Types and Firms' Innovation: Institutional Theory mentioning

confidence: 99%

See 2 more Smart Citations

Impact of ownership types on R&D intensity and innovation performance—evidence from transitional China

Teng

2017

Front. Bus. Res. China

View full text Add to dashboard Cite

show abstract

“…Governments can help firms overcome some of these resource barriers by providing government resources (Inoue et al, ; K. Z. Zhou et al, ) to accelerate the absorption and utilization of knowledge embedded in external innovativeness. Indeed, research has found that governments in different countries, ranging from developed to developing, play an important role in filling the gap between inventors and external financiers by directly providing financial assistance and loans to inventors (Siegel, Wessner, Binks, & Lockett, ; Svensson, ) or by facilitating the growth of private venture capital firms to support innovative firms (Gompers & Lerner, ).…”

Section: Hypothesesmentioning

confidence: 99%

On the duality of political and economic stakeholder influence on firm innovation performance: Theory and evidence from Chinese firms

Xia

Zajac

2017

Strategic Management Journal

231

197

View full text Add to dashboard Cite

Research Summary: In this study, we propose and test a multi-stakeholder perspective to address variation in innovation performance across firms. Specifically, we analyze how a focal firm's innovation performance is shaped by its political stakeholders (local and central governments) and economic stakeholders (suppliers, buyers, and competitors). Using a data set consisting of over 26,400 Chinese firms, we first find support for our predictions that a focal firm's innovation performance will be enhanced by both its government connections and the innovativeness of its economic stakeholders. We then analyze whether the interdependent effect of these political and economic stakeholders is more likely to be synergistic versus antagonistic, and find evidence consistent with the antagonistic view. Managerial Summary: We show how a firm's innovativeness is influenced strongly by its relationships to external stakeholders. Specifically, we examine the potentially dual-edged role of political stakeholders (local and central governments) and economic stakeholders (suppliers, buyers, and competitors). Using extensive data on Chinese firms, we find: (a) that the higher the level of government connections, the greater a firm's innovativeness; (b) that firms located in proximity with more innovative economic stakeholders also tend to have higher innovation performance. We also look beyond these independent positive effects to examine the joint effect of these two forms of stakeholder influence, and here we see that more influence is not always better. Specifically, we find that the innovation benefit that typically accrues to firms in proximity to more innovative economic stakeholders is weakened when those firms also have higherlevel government connections.

show abstract

Monitoring effect of transparency: How does government environmental disclosure facilitate corporate environmentalism?

et al. 2019

View full text Add to dashboard Cite

Environmental information transparency is a key policy instrument in environmental governance, which has been emphasized in most of the literature. Although a large body of research has focused on its role at the national or industrial level in the developed countries, few studies have extended it to emerging economies and tested its role in the subnational context. In this paper, we have empirically examined how government environmental disclosure shapes corporate environmentalism in the context of China. It is argued that the information transparency of government environmental disclosure can promote corporate environmentalism by providing supports for governments' decision‐making of environmental governance, the activeness of environmental nongovernment organizations, and the participation of general public in environmental issues. Especially, we have highlighted two kinds of influences on focal relationship: booster role of bureaucratic capability in the diffusion of environmental institutional pressure and receiver role of organization slack and industrial competition in the perception of environmental institutional pressure. Using a panel dataset of Chinese publicly listed firms from 2008 to 2015, a positive relationship between government's environmental information transparency and corporate environmentalism is found. In addition, our result has shown that this relationship will be stronger for regions where government bureaucracy capabilities are stronger. This study contributes to understanding of the process of firms' strategic choice facing environmental and institutional changes in emerging economies.

show abstract

State Ownership and Firm Innovation in China: An Integrated View of Institutional and Efficiency Logics

Cited by 788 publications

References 93 publications

Impact of ownership types on R&D intensity and innovation performance—evidence from transitional China

Impact of ownership types on R&D intensity and innovation performance—evidence from transitional China

On the duality of political and economic stakeholder influence on firm innovation performance: Theory and evidence from Chinese firms

Monitoring effect of transparency: How does government environmental disclosure facilitate corporate environmentalism?

Contact Info

Product

Resources

About