The bright and dark sides of institutional intermediaries: Industry associations and small-firm innovation

Yao, Nengzhi; Guo, Qiaozhe; Tsinopoulos, Christos

doi:10.1016/j.respol.2021.104370

Cited by 25 publications

(26 citation statements)

References 92 publications

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“…The National Economic Research Institute of China compiles a composite “marketization” index at the provincial level (Fan et al, 2011; Wang et al, 2019), and it has been widely used to reflect government–market relationships (e.g., Yao et al, 2022; Zhou et al, 2017). The index is composed of five subdimensions, among which we used the subdimension on the factor marketization to measure government intervention in the factor market, which is analogous to the approach of Yao et al (2022). The marketization index is an inverse indicator of government intervention because a higher value of factor marketization means that government gives way to market mechanisms and intervenes in less resource allocation.…”

Section: Methodology and Resultsmentioning

confidence: 99%

“…The former emphasizes the wide use and diffusion of ICTs in an environmental system, but the latter is government support in building generic and basic information facilities and communication systems that enable digital activities. Government intervention refers to the extent to which government intervenes in resource allocation and utilization (factor market) (Sheng et al, 2011; Yao et al, 2022). Cyberculture reflects digital values and subsequent digital citizen participation, that is, the condition that people in one area have the habit of integrating the Internet with social and economic activities (Bell et al, 2004; Bouzguenda et al, 2019).…”

Section: Theory and Literature Backgroundmentioning

confidence: 99%

“…Research at the nexus of institutional theory and firm innovation has suggested that formal (e.g., those concerning government arrangements) and informal institutional forces (e.g., implicit rules, norms, or culture) play an important role in influencing resource‐management efficiency, thereby shaping managers' R&D decision‐making (Sheng et al, 2011; Zhou et al, 2017). Given that institutions in provincial markets of China are not developed uniformly (Hsieh & Klenow, 2009; Peng, 2003; Yao et al, 2022), we expect that the impact of green digitalization on environmental innovation varies across provinces.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…To test our ideas, we combined the data of Chinese listed firms with provincial‐level digitalization information. Examining green digitalization and institutional forces at the provincial level is appropriate because they are the units of administrative and institutional reform (Fan et al, 2011; Yao et al, 2022). In addition, the provinces of China have not developed digitalization and institutions uniformly (Hsieh & Klenow, 2009; Peng, 2003).…”

Section: Introductionmentioning

confidence: 99%

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How does green digitalization affect environmental innovation? The moderating role of institutional forces

2022

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Environmental innovation is essential to achieving environmental and economic sustainability. This study aims to explain whether and under what conditions green digitalization may foster firm environmental innovation. Using a database of Chinese listed firms matched with provincial‐level digitalization information from 2012 to 2018, we find that green digitalization significantly increases environmental innovation, and this effect can be achieved through enhancing R&D investment. In addition, the positive effect of green digitalization on environmental innovation is moderated by formal and informal institutional forces. We establish government support (in the form of financial investment in building digital infrastructure), government intervention, and cyberculture as the theoretically important moderators. Our findings contribute to digitalization research, institutional theory, and the literature on environmental innovation and provide important practical implications for managers and policymakers seeking to improve environmental sustainability through digital transformation.

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Section: Methodology and Resultsmentioning

confidence: 99%

Section: Theory and Literature Backgroundmentioning

confidence: 99%

Section: Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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How does green digitalization affect environmental innovation? The moderating role of institutional forces

2022

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“…Although political connections influence the quantity of invention, they may have a negative impact on its quality (Liu S. et al, 2021 ; Wang et al, 2022 ). Political ties hinder government's ability to fund high-quality innovation subsidies and even lower industry R&D intensity, a key indicator of innovation quality (Tian et al, 2019 ; Yao et al, 2022 ). Government subsidies, although encouraging independent innovation in high-tech industries, have a negative impact on company performance in both low-tech and high-tech companies (Wu and Hu, 2020 ; Guo and Zhang, 2022 ).…”

Section: Literature Reviewmentioning

confidence: 99%

‘Guidance' or ‘Misleading'? The government subsidy and the choice of enterprise innovation strategy

Ding

Wang²,

Liu³

et al. 2022

Front. Psychol.

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Government subsidies have a direct impact on firms' innovation strategies. The game relationship between the government, the subsidized firm and its competitors under different subsidy strategies affects firms' innovation behavior and thus innovation performance. This paper uses a dynamic evolutionary game theory approach based on cost-benefit differences to analyse the mechanisms by which government subsidy strategies affect firms' innovation strategies. It is found that the marginal benefits of a firm's innovation strategy will directly affect the game outcome, indicating that the choice of innovation strategy depends on the maximization of individual firm's interests. At the same time, a firm's innovation strategy is influenced by the firm's own innovation ability and competitors' innovation strategy, and there are two game equilibria. Government subsidies have a positive contribution to the innovation strategy choice of subsidized firms, but have a crowding-out effect on non-subsidized competing firms. The strength of the penalty (the efficiency of the implementation of government subsidies), the marginal revenue of the subsidized firms' rational use of government subsidies and the competitors' strategic choices will directly affect the game outcome.

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Exploring the effects of socioemotional wealth on environmental strategies of family firms in China: An integrative perspective

Wang

Yao

et al. 2023

Bus Strat Env

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The findings of family business research regarding the relationship between socioemotional wealth (SEW) and environmental strategies have been inconsistent. This study seeks to explain the inconsistency by distinguishing between extended SEW and restricted SEW. We argue that prior empirical studies may ignore the dual nature of SEW and prose that family firms with extended SEW are more likely to pursue proactive environmental strategies, whereas those with restricted SEW tend to adopt reactive environmental strategies. Furthermore, we integrate the SEW perspective with regulatory focus theory, proposing that promotion focus mediates the relationship between extended SEW and proactive environment strategies, while prevention focus mediates the relationship between restricted SEW and reactive environmental strategies. These hypotheses were tested with a survey of polluting family firms in China and were found to be supported. Our findings offer novel insights into family business research, as well as significant implications about how to enhance environmental performance of family firms.

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The bright and dark sides of institutional intermediaries: Industry associations and small-firm innovation

Cited by 25 publications

References 92 publications

How does green digitalization affect environmental innovation? The moderating role of institutional forces

How does green digitalization affect environmental innovation? The moderating role of institutional forces

‘Guidance' or ‘Misleading'? The government subsidy and the choice of enterprise innovation strategy

Exploring the effects of socioemotional wealth on environmental strategies of family firms in China: An integrative perspective

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