Corporate Philanthropy and Innovation Performance

Shaoyan Jiang,Wanwan Hu,Xiaohui Tao,Jingwen Mi

doi:10.5539/ijbm.v13n4p173

Abstract

Corporate Philanthropy and innovation performance are the focuses of enterprise research in recent years. Based on resource dependence theory and information disclosure theory, the paper explores the impact of philanthropic donations on innovation performance. Through the quantitative data analysis of 319 enterprises in China, the results show that: (1) There is an obviously positive correlation between philanthropic donations and innovation performance, which will be affected by the scale of enterprises. (2) The disclosure of philanthropic information will weaken the promotion effect of philanthropic donation on innovation performance. The conclusion of the study made a useful extension of the existing philanthropic donation literature and provided a theoretical basis for the philanthropic practice of the enterprise.

Highlights

In recent years, the charity donation activities of Chinese enterprises are increasing
As a rational market-oriented enterprise that pursues the maximization of shareholders' value, how can the promotion of philanthropic donations contribute to its profit growth? This is the focus of many scholars in recent years, such as: political motivation(Du Yong & Chen Jianying, 2016; Dai Yiyi et al, 2014); Marketing motivation (Liu Ying, 2015; Hu Jun, 2017; Park et al, 2016); Management self-motivation (Wang Ying et al, 2017; Chen et al, 2016); Covering the motivation of the lack of corporate social responsibility (Gao Yongqiang et al, 2012; Ni Yinzhu and He Chen, 2016)
Based on the theories of resource dependence and information disclosure, this paper constructs an moderate effect model of philanthropic donations, enterprise size, informational disclosure and innovation performance, so as to try to answer whether philanthropic donation contributes to innovation or not, which provides a theoretical basis for philanthropic donation practice

Summary

Introduction

The charity donation activities of Chinese enterprises are increasing. It is conducive to establishing good contacts with external resource holders, so as to obtain complementary resources and promote the innovation performance of enterprises. Innovative resources such as from universities and research institutes are important sources of external scientific and technological resources for enterprises. In order to further understand the role of philanthropic donations in the innovation and development of enterprises, this paper, from the perspective of corporate technological resources acquisition ability and charity information disclosure, explores the impact mechanism of corporate philanthropic donations on innovation performance through the quantitative data of 315 enterprises. Based on the theories of resource dependence and information disclosure, this paper constructs an moderate effect model of philanthropic donations, enterprise size, informational disclosure and innovation performance, so as to try to answer whether philanthropic donation contributes to innovation or not, which provides a theoretical basis for philanthropic donation practice

Philanthropic Donations and Innovation Performance

Descriptive Statistics and Correlation Analysis

Robustness Test

Enterprise Size

Philanthropic Donations Information Disclosure

Research Deficiencies and Prospects