External Environment Uncertainty, Key Resources Acquisition and Corporate Technological Innovation

Abstract

Building on the resource-based theory, we investigate the impact of external environmental uncertainty on firm technological innovation taking into consideration the mediating role of key resource acquisition among this relationship. A sample of Chinese A-share listed companies from 2008 to 2019 is employed to test the proposed research model. The results provide support for the argument that the external environmental uncertainty negatively relates to the input and output of technological innovation, in which the acquisition of key resources - capital resources and information resources plays a mediating effect. We also find that corporate social capital mitigates this negative impact. Further, technological innovation of high-tech industries is more sensitive to external environment uncertainty compared with non-high-tech industries. Our results not only theoretically extend previous research by providing a new perspective to explain the mechanism of external environment uncertainty affecting corporate technological innovation, but also provide practical guidance for firms on how to effectively conduct technological innovation activities in a highly uncertain external environment.