Firms' Business Conditions, Environmental Uncertainty and Firms' Innovation Behaviour

Abstract

Taking the panel data of Shanghai and Shenzhen A-share listed companies from 2012 to 2022 as samples, the article constructs a two-way fixed-effects model controlling for individuals and time to empirically study the influence of enterprise business conditions on enterprise innovation behaviour. The results found that: enterprise business condition positively affects enterprise innovation behaviour, and positively affects enterprise innovation by positively affecting enterprise operating cash flow; with environmental uncertainty as the moderating variable, environmental uncertainty negatively moderates the positive impact of enterprise business condition on enterprise innovation behaviour; further analysis found that the impact of non-state-owned enterprises' business condition on enterprise innovation behaviour is more significant than state-owned enterprises', while state-owned enterprises' impact is not significant. The above conclusions are still valid after the robustness tests such as substitution of variables and lag treatment.