Abstract

The interaction between the organization and the institutional environment leads to organizational change or innovation. As the basic industry of China’s national economy, agricultural enterprises ...

Highlights

  • Innovation implies the utilization of existing information and material to improve or make new things

  • The gap between the minimum value and the maximum value of the formal system and the informal system is large, indicating that there is a big difference in the institutional environment between agricultural enterprises

  • Discussion on findings Our results show that formal systems have significant positively connection with innovation performance of the studies agricultural companies, but informal system indicated an adverse influence on firms’ innovation performance

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Summary

Introduction

Innovation implies the utilization of existing information and material to improve or make new things. Technological advancement depends on new innovation creation or development dependent on logical information and the asset it makes. Improving advancement execution has built up a significant need for undertakings. Organization structure has become a key component of arrangements being sought after to accomplish prevalent financial advancement and remote challenge in many created and rising economies (Campbell, 2007; Berrone et al, 2013). One field where government intervention can have positive effects is the use of its monopolistic regulatory power to ensure that the structured institutional environment in which businesses operate is conducive to development. The institutional framework has been described as a critical element of firm conduct and success (Peng, 2002; Peng et al, 2008; Delmas & Montes-Sancho, 2011)

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