Abstract
This paper studies the endogenous relationship between innovation investment and enterprise performance through the three-stage least square method, taking the companies listed on the Main board of A-shares in Shanghai and Shenzhen stock Exchanges from 2014 to 2018 as research samples, and explores whether the improvement of management ability can effectively promote the transformation of enterprise innovation investment into enterprise performance from the perspective of innovation. The research results show that there is a two-way influence between innovation input and enterprise performance. The innovation input can significantly promote the growth of enterprise performance, but its promotion effect is relatively lagged. The growth of performance may weaken the enterprise's innovation motivation and reduce the future innovation input. Management competence has a significant positive moderating effect on the relationship between innovation input and performance. This paper provides an important reference for balancing innovation and enterprise performance and improving the transformation efficiency of enterprise innovation investment to increase enterprise value.
Highlights
Innovation is an important source of core competitiveness, and innovation is inseparable from R & D investment in products and technology, but whether a large amount of innovation investment can be effectively and smoothly transformed into enterprise performance to enhance the value of enterprises, it is an issue of great concern to both theorists and practitioners
Some studies believe that R&D investment can significantly promote the current corporate performance [1], and some studies believe that the return of R & D investment lags behind [2]
This paper empirically tests the relationship between innovation investment and corporate performance
Summary
Innovation is an important source of core competitiveness, and innovation is inseparable from R & D investment in products and technology, but whether a large amount of innovation investment can be effectively and smoothly transformed into enterprise performance to enhance the value of enterprises, it is an issue of great concern to both theorists and practitioners. There is controversy on the relationship between innovation investment and corporate performance in the existing literature. Some studies pointed out that the relationship between innovation investment and corporate performance is non-linear [3], did not form a consistent conclusion. A few literatures have discussed the impact of innovation investment on enterprise performance, and the reverse impact of enterprise performance on innovation investment[4,5]. As management plays a leading role in innovation activities, in recent years, research on management and innovation has emerged one after another, but most of the existing studies have focused on the background characteristics of senior executives or incentives for senior executives [6,7]. This paper integrates the three variables of management capabilities, innovation input and enterprise performance, and examines the regulatory role of management capabilities in the process of transforming innovation input into enterprise performance, which expands the research perspective of management capabilities, and further enriches the relevant research on the economic consequences of management capabilities
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