U-shaped Effect Research Articles

Innovation subsidies and entrepreneurial activity in an emerging market

PurposeThis study aims to find that entrepreneurial activities can spur entrepreneurial firms' superior performance, but this effect is contingent on the different levels of government innovation subsidies. Extending the institutional perspective explanation and entrepreneurship perspective explanation, this study examines how a firm's entrepreneurial orientation (EO) affects its superior performance when it receives innovation subsidies.Design/methodology/approachEntrepreneurial firms in China, an emerging economy, are taken as the context for empirical evidence. A large-scale questionnaire survey is used for firm data collection. Ordinary least squares (OLS) regression is employed to test the hypothesized model using a sample of 287 entrepreneurial firms.FindingsThe results show a curvilinear, inverse U-shaped moderating effect in the relationship between EO and firm performance. This relationship is strongest at intermediate levels of innovation subsidies but is comparatively weaker when innovation subsidies are low or high.Originality/valueThe study contributes to entrepreneurship research by examining the nonlinear moderating effect of innovation subsidies on entrepreneurial firms' performance. The study also contributes to entrepreneurship theory by elaborating on the innovation subsidy scheme and how it facilitates the development of entrepreneurial activity.

Modeling the time-varying effects of oil rent on manufacturing: implications from structural changes using Markov-switching model.

Previous "oil curse" studies primarily estimate a single, linear effect of oil rents on income using time-invariant parameters over entire sample periods. This means the true effects of oil dependence cannot be captured if structural changes are taking place, or effects are non-linear. We introduce a two regime Markov-switching model into the resource effects literature to assess the time-varying effects of oil rent dependence on the Malaysian manufacturing sector. We also allow for non-linear threshold effects. We find the impact of oil rents is regime-dependent. Under a rarer "first regime" structure, there is no significant effect. Under a predominant "second regime," there is an inverted U-shaped effect, with oil rents' share of GDP up to 8% positively associated with manufacturing, and negatively associated beyond this. We find connections between regime changes and the 1997 Asian financial crisis and 2008 global financial crisis. Implications for effective diversification policies are discussed.

Does servitization of industrial structure adversely affect the quality of economic development? Evidence from China

China is shifting from focusing on speed of economic development to quality development. As the proportion of service industry increases, the impact of servitization of industrial structure on high-quality development urgently needs to be clarified. This paper for the first time uses the panel data of 280 prefecture-level cities ranging from 2003 to 2019 in China, applies the dynamic panel Generalized Method of Moment (GMM) estimation method, employs labor productivity, average wage, and environmental pollution as intermediary variables, and analyzes how servitization of industrial structure affects the quality of economic development. The results show that there is a U-shaped effect for servitization of industrial structure on quality of economic development. The higher the initial level of servitization of industrial structure, the weaker the negative effect for servitization of industrial structure on the quality of economic development. When the initial level of the former is high enough, it can promote the latter. Moreover, the effects differ by region. Furthermore, negative effect of the service-oriented trend of industrial structure on economic development quality is weakened by improving the overall labor productivity and reducing environmental pollution, while it is strengthened by reducing the average wage level. As such, we propose that it is necessary to further promote the rationalization of the industrial structure, promote the optimization of the development of the industrial structure, and to promote the effective allocation of resources.

Virtuous opinion change in structured groups

Abstract Although the individual has been the focus of most research into judgment and decision-making (JDM), important decisions in the real world are often made collectively rather than individually, a tendency that has increased in recent times with the opportunities for easy information exchange through the Internet. From this perspective, JDM research that factors in this social context has increased generalizability and mundane realism relative to that which ignores it. We delineate a problem-space for research within which we locate protocols that are used to study or support collective JDM, identify a common research question posed by all of these protocols—‘What are the factors leading to opinion change for the better (‘virtuous opinion change’) in individual JDM agents?’—and propose a modeling approach and research paradigm using structured groups (i.e., groups with some constraints on their interaction), for answering this question. This paradigm, based on that used in studies of judge-adviser systems, avoids the need for real interacting groups and their attendant logistical problems, lack of power, and poor experimental control. We report an experiment using our paradigm on the effects of group size and opinion diversity on judgmental forecasting performance to illustrate our approach. The study found a U-shaped effect of group size on the probability of opinion change, but no effect on the amount of virtuous opinion change. Implications of our approach for development of more externally valid empirical studies and theories of JDM, and for the design of structured-group techniques to support collective JDM, are discussed.

The U-shaped effect of intimacy on word-of-mouth intention about consumption failure: Based on the perspective of motivational conflict model

The U-shaped effect of intimacy on word-of-mouth intention about consumption failure: Based on the perspective of motivational conflict model

The Effect of Proximity on Enterprise Innovation Performance in the Innovation Ecosystem

The establishment and improvement of an innovation ecosystem have become important issues in building an innovative powerhouse. Built on the background of innovation ecosystem, from the perspective of cooperative interaction and dynamics, this study introduces value co-creation and dynamic capabilities, and analyzes how the proximity between enterprises and scientific research organizations and between enterprises affects enterprise innovation performance. The results demonstrate that, on the one hand, the proximity between enterprises and scientific research organizations and between enterprises can directly have an inverted U-shaped effect on enterprise innovation performance. On the other hand, it can indirectly have an inverted U-shaped effect on enterprise innovation performance through the partial mediating effect of value co-creation. Dynamic capabilities play a major role in regulating the relationship between proximity and enterprise innovation performance, as well as value co-creation and enterprise innovation performance. The research results expand the research in the field of innovation ecosystems, reveal the marginal effect of value co-creation on enterprise innovation performance, and help enterprises in the system to clarify how to improve innovation performance through proximity strategies and value co-creation activities with scientific institutions and other enterprises.

Do tourism clusters contribute to low-carbon destinations? The spillover effect of tourism agglomerations on urban residential CO2 emissions

A burgeoning literature has investigated the relationship between tourism and regional CO2 emissions. However, the results are equivocal. Some scholars find that tourism induces more emissions, while others find that tourism benefits emission mitigation. Previous research suffers three deficiencies: (1) the CO2 emissions induced by tourism beyond the tourism sectors are neglected; (2) the role of tourism agglomerations in sustainable destination development is underrated; (3) the tripartite mechanism of tourism agglomerations, household income, and urban direct residential CO2 emissions (DRCEs) remains to be determined. Based on the theories of complex adaptive system and an empirical study of 30 provinces in China, we examine the relationship between the tripartite roles via multiple spatial econometric models. The results disclose that tourism agglomerations have dual effects on urban DRCEs and an inverted U-shaped effect on household income. The growth of tourism agglomerations has generally promoted urban DRCEs in many provinces of mainland China during the last fourteen years because its indirect effect (positive) outweighs the direct effect (negative). However, tourism agglomerations are feasible for low-carbon destinations once the emission-income decoupling happens. This study contributes to low-carbon destination management by presenting a more holistic image of the social-economic-environmental impacts of tourism agglomerations.

Does charitable giving reduce firms' willingness to invest in green innovation?

While corporate charitable giving(CG) can help firms obtain external innovation resource support, it can also crowd out internal innovation resources. The purpose of this study is to clarify the mechanism of CG and government green subsidies(GS) on green innovation(GI). In this regard, we integrated signaling theory and principal-agent theory to provide a new theoretical perspective for simultaneously focus on the impact of external resource acquisition and internal resource allocation on GI. We conducted a threshold regression analysis on the balanced panel data of 863 listed companies of China from 2016 to 2019 to clarify the input boundary between the promoting and inhibiting effects of corporate CG on corporate GI. And we further explored the relationship between GS and GI under the effect of different CG thresholds. Our findings indicate that there is an inverted U-shaped threshold effect of CG on GI. The impact of GS on GI shows a decreasing marginal benefit as the intensity of CG increases. Based on the findings, we propose corresponding countermeasures for the management of enterprises and the government.

Velocity-tuning of somatosensory EEG predicts the pleasantness of gentle caress

Numerous studies have established an inverted u-shaped effect between the velocity of a caress and its pleasantness and linked this effect to the C-tactile (CT) system considered central for physical and mental health. This study probed whether cortical somatosensory representations predict and explain the inverted u-shaped effect and addressed associated individual differences. Study participants (N = 90) rated the pleasantness of stroking at varying velocities while their electroencephalogram was being recorded. An analysis across all participants replicated a preference for intermediate velocities, while a cluster analysis discriminated individuals who preferred slow (N = 43) from those who preferred fast stroking (N = 47). In both groups, intermediate velocities maximized amplitudes of a somatosensory event-related potential referred to as sN400, in line with the average rating effect. By contrast, group differences emerged in how velocity modulated a late positive potential (LPP) and Rolandic power. Notably, both the sN400 and the velocity-tuning of LPP and Rolandic power predicted the participants’ pleasantness ratings. Participants were more likely to prefer slow over fast stroking the better their LPP and Rolandic power differentiated between different velocities. Together, these results shed light on the complexity of tactile affect. They corroborate an average preference for intermediate velocities that relates to largely shared effects of CT-targeted touch on the activity of somatosensory cortex. Additionally, they identify individual differences as a function of how accurately somatosensory cortex represents the velocity of peripheral input and suggest these differences are relevant for the extent to which individuals pursue beneficial, CT-targeted touch.

Influence Mechanism of Polycentric Spatial Structure on Urban Land Use Efficiency: A Moderated Mediation Model.

Under the background of green development, the spatial structure of urban agglomerations (UA) has an important impact on urban land use efficiency (ULUE), but few studies have explored the impact mechanism between the two. This research explores the impacts of polycentric development on ULUE of UA, using data for 140 cities in China's top ten key UA covering the period from 2004-2019. The linkage between polycentric development and ULUE is explored by estimating models of determinants of ULUE. This research also examines the mechanism of the polycentric spatial structure of UA on ULUE by using a moderated mediation model. The main findings of the research can be concluded as below. The eastern UAs show a mostly polycentric spatial structure, whereas the central and western UAs show a weak polycentric spatial structure. The polycentric spatial structure of UA has a positive impact on ULUE. An inverted U-shape curve depicts the relationship between the polycentric spatial structure of UA and ULUE. However, the mediating variables, integration of industrial structure and factor mobility have a positive and partially mediating effect between the polycentric spatial structure of UA and ULUE. The infrastructure level has a positive U-shaped regulation effect, in which the impact coefficient of transport infrastructure is more significant. These findings provide empirical evidence for the coordinated development of China's regional space planning and ULUE.

Can Global Value Chains Embedment Reduce Carbon Emissions Embodied in Exports?—Empirical Test Based on the Manufacturing Industries

Active participation in the global value chains (GVC) has been recognized as an important factor in curbing the growth of carbon emissions. However, how GVC embedment affects carbon emissions in economies and what are the pathways of its impact need to be further studied. This paper analyzes the mechanism of GVC embedment affecting carbon emissions embodied in exports (CEEE) and selects 17 manufacturing industries in 36 economies around the world for empirical testing. It is found that GVC embedment significantly reduces the CEEE. Specifically, GVC embedment has a suppressive effect on the CEEE of both developed and developing countries, and the former has a greater suppressive effect than the latter; the effect on the CEEE of low-tech industries is significantly negative but not conducive to carbon emissions reduction in high-tech industries; complex and forward embedment have higher emissions reduction effects compared with simple and backward embedment. More importantly, GVC embedment reduces the CEEE through energy conservation effect, structure effect and transfer effect, and all of them show significant inverted U-shaped mediation effect. The findings of this paper have important implications for the sustainable economic development around the world under the GVC division of labor system.

Top management team internal social capital, market dynamics and business model design: a dynamic managerial capability perspective

PurposeDrawing on the dynamic managerial capability perspective and the dynamic capability perspective of business model (BM) literature, this paper aims to investigate how top management team internal social capital (TISC) promotes BM design and how such effects are moderated by market dynamics (i.e. demand uncertainty and competitive intensity).Design/methodology/approachThe proposed hypotheses were tested by a questionnaire-based survey. The empirical study was conducted on a sample of 210 firms in China. The model was tested via hierarchical regression analysis.FindingsTISC has a positive effect on BM efficiency but an inverted U-shaped effect on BM novelty. The effects of TISC on BM efficiency and novelty are contingent on demand uncertainty and competitive intensity in different ways. Specifically, this study finds that demand uncertainty strengthens the inverted U-shaped effect of TISC on BM novelty. This study also finds that competitive intensity strengthens the positive effect of TISC on BM efficiency but weakens the inverted U-shaped effect of TISC on BM novelty.Originality/valueThe conclusion contributes to the dynamic capability perspective of BM literature in two ways. First, it offers a dynamic managerial capability perspective for understanding the antecedents of BM design. It highlights TISC, a root of dynamic managerial capability, as an important internal antecedent of BM design. Second, it provides a more nuanced understanding of the role of TISC in BM design. The findings show the distinct effects of TISC on BM efficiency and novelty. This study also discusses the contingency role market dynamics play in the TISC–BM design relationship.

Do R&D Subsidies Improve Operational Performance? New evidence from China

The sustainable development of the digital economy has attracted wide attention. To ex-plore how to improve the operational performance of China's digital firms, this paper conducts an influence mechanism model to test the nonlinear effect, heterogeneity effects, and mediation effects using a panel data of China's digital firms from 2008 to 2017. The empirical results indicate that R&D subsidies have an inverted U-shaped effect on operational performance, and these results are still valid after a series of robustness tests. In addition, we find that R&D subsidies have a heterogeneous effect on operational performance in terms of region, company size, governance structure, and executive education background. Moreover, regarding the influence mechanism, R&D subsidies improve operational performance by improving innovation efficiency. This paper proposes some policy implications to improve the operational performance of China's digital firms.

Just Enough Information? The Contingent Curvilinear Effect of Information Volume on Decision Performance in IS-Enabled Teams

Information, which is the critical resource provided by information systems (IS), is available in increasing volumes due to rapid technological progress. This causes a tension between the cognitive limitations of individuals and their access to large volumes of information. This tension is important not only for individuals but also for teams, which are increasingly making important organizational decisions. Recognizing this tension, this paper investigates the relationship between information volume and decision performance in IS-enabled teams. We use information processing and schema theories to develop a contextualized theoretical model, wherein information volume has a curvilinear (inverted U-shaped) effect on decision performance, and this effect is moderated by three context-relevant attributes of the team members: computer self-efficacy, computer anxiety, and learning goal orientation. We conducted two complementary studies, with similar experimental contexts and procedures but different types of participants and different tasks. In these studies, 236 individuals in 118 dyads (Study 1) and 200 individuals in 60 small teams (Study 2) made decisions over time using an enterprise resource planning system for a competitive virtual firm in a business simulation. We used objective data on system use and decision outcomes, along with survey data, to test the theoretical model. The two complementary studies find consistent results supporting the curvilinear relationship between information volume and decision performance and find that this relationship is flattened by high computer self-efficacy. Study 1 also supports the hypothesized steepening effects of high computer anxiety and learning goal orientation on the curvilinear relationship. Study 2 does not support these effects of computer anxiety and learning goal orientation but highlights some boundary conditions for them. Together, the studies provide insights into how information volume affects decision performance in IS-enabled teams, and how context-relevant team member attributes moderate this relationship and themselves affect decision performance.

Examining the nonlinear relationships of corporate social responsibility, innovation and construction firm performance: the moderating role of construction firms' competitive position

PurposeCorporate social responsibility (CSR) and innovation are the two main approaches firms utilize to promote sustainable development. However, as yet, scholars have reached no consensus regarding their precise impact on construction firm performance (CFP), hindering efforts to implement effective sustainable development strategies that improve CFP. In view that a simple linear relationship may not be sufficient to capture their precise pattern, this study aims to unveil the nonlinear impact of CSR and innovation on CFP, especially when construction firms take up a distinct competitive position.Design/methodology/approachThis study first proposed four hypotheses to establish a new theoretical model by incorporating CSR, innovation, CFP and construction firms' competitive position (CFCP). Then the model was tested by using 292 annual observations collected from 75 construction firms in China. A multiple regression model analysis was carried out to analyze the survey data and validate the hypotheses.FindingsThe results reveal that both CSR and innovation have a U-shaped impact on the price-to-book ratio of a construction firm, a specific CFP measure. CFCP negatively moderates the U-shaped relationship between CSR and CFP, but positively moderates the U-shaped relationship between innovation and CFP.Originality/valueThis study goes beyond a simple linear view, instead of unveiling the nonlinear U-shaped effects of CSR and innovation on CFP that deepen the understanding of their complex relationships in the construction industry and makes construction firms aware that CSR and innovation can only improve performance if they reach a certain level. The moderating role of CFCP provides important implications for construction firms seeking to adopt appropriate competitive strategies related to social responsibility and innovation that both promote CFP and achieve sustainable development.

Performance Compensation Commitment in Mergers and Acquisitions

The impact of performance compensation commitments on mergers and acquisitions (M&As) has been widely discussed, but has no consistent conclusions. By investigating M&A events among A-share firms from 2011–2015, we found an inverted U-shaped relationship between performance compensation commitments and M&A performance. The PSM is firstly used to select a paired sample of firms’ signing performance compensation commitments, which is used to test the incentive effect of signing performance compensation commitments. Secondly, the different impact paths of performance compensation commitment on M&A performance are tested empirically. The study found that: (1) the signing of performance compensation commitment agreements is more likely to increase the M&A price, resulting in a “high premium”; (2) M&A premiums and performance compensation commitments are helpful to improve the short-term effect of M&A performance. However, in the long run, M&A premiums and performance compensation commitments reduce M&A performance, which means that performance commitments have an inverted U-shaped effect on M&A performance. This study enriches our understanding about the impact of performance compensation commitments on M&A performance and has important implications for institutional construction and the protection of small and medium-sized businesses.

긍정심리자본과 적응행동 간의 비선형적 관계와 팀 의사소통의 교차수준 조절역할

Former studies have shown that psychological capital — a key variable in positive psychology and positive organizational behavior approach — exerts a consistently positive effect. However, recent research has begun to raise doubts about whether job outcomes are always desirable when positive emotions and cognitions are high. In this vein, this research — apart from the linear argument that the higher the psychological capital, the higher the adaptive behavior — empirically explores the idea that psychological capital might result in negative effects if it exceeds a certain level. Additionally, we examine team communication as a way to effectively manage these negative effects.
 Analysis of data collected from 62 firefighter team leaders and 261 firefighters finds that psychological capital has an inverted U-shaped non-linear effect on adaptive behavior. That is, from a low level to a certain level of psychological capital, psychological capital and adaptive behavior show a positive relationship.
 Conversely, when psychological capital exceeds a certain level, the relationship between psychological capital and adaptive behavior is negative. We also find that when team communication is sufficiently high, there is a cross-level moderating effect that lessens the inverted U-shaped curvilinear relationship between psychological capital and adaptive behavior. Based on these theoretical implications, we suggest managerial implications, research limitations, and future research.

Internal Control, Negative News, and Corporate Performance-An Empirical Analysis Based on China's Strategic Emerging Enterprises

Abstract In the information age, negative news affects corporate performance due to its powerful ability to spread and disrupt. Existing studies examine the linear relationship between negative news and corporate performance and explore the ex-post response mechanism of negative news. However, the nonlinear relationship between negative news and corporate performance and the role and mechanisms of ex-ante prevention of negative news by corporate control factors are unclear. We explore these issues using a sample of Chinese strategic emerging companies from 2012 to 2020. Our results show that: there is an inverted U-shaped effect of negative news intensity on corporate performance; internal control dampens negative news intensity; corporate shareholder responsibility and corporate violations degree partially mediate the negative relationship between internal control and negative news intensity, with the joint mediation effect of the two accounts for 39% of the total effect. Our study identifies an 'optimal range' of negative news intensity that is beneficial to corporate performance and finds the role of internal control in the governance of negative news intensity and the mechanisms of action, which contributes to further understanding of the impact of negative news on firm performance and has important implications for the governance of corporate opinion. JEL classification numbers: G30, M10, M20. Keywords: Corporate performance, Corporate shareholder responsibility, Corporate violation degree, Internal control, Negative news intensity.

Working memory processing deficit associated with a nonlinear response pattern of the anterior cingulate cortex in first-episode and drug-naïve schizophrenia.

Impaired working memory (WM) is a core neuropsychological dysfunction of schizophrenia, however complex interactions among the information storage, information processing and attentional aspects of WM tasks make it difficult to uncover the psychophysiological mechanisms of this deficit. Thirty-six first-episode and drug-naïve schizophrenia and 29 healthy controls (HCs) were enrolled in this study. Here, we modified a WM task to isolate components of WM storage and WM processing, while also varying the difficulty level (load) of the task to study regional differences in load-specific activation using mixed effects models, and its relationship to distributed gene expression. Comparing patients with HCs, we found both attentional deficits and WM deficits, with WM processing being more impaired than WM storage in patients. In patients, but not controls, a linear modulation of brain activation was observed mainly in the frontoparietal and dorsal attention networks. In controls, an inverted U-shaped response pattern was identified in the left anterior cingulate cortex. The vertex of this inverted U-shape was lower in patients than controls, and a left-shifting axis of symmetry was associated with better WM performance in patients. Both the above linear and U-shaped modulation effects were associated with the expressions of the genes enriched in the dopamine neurotransmitter system across all cortical brain regions. These findings indicate that a WM processing deficit is evident in schizophrenia from an early stage before antipsychotic treatment, and associated with a dopamine pathway related aberration in nonlinear response pattern at the cingulate cortex when processing WM load.

Do expressions of sadness, anxiety and fear have different impacts on attracting donations? Evidence from a Chinese online charitable crowdfunding platform

PurposeExtant research shows mixed results on the impact of expressed negative emotions on donations in online charitable crowdfunding. This study solves the puzzle by examining how different types of negative emotions (i.e. sadness, anxiety and fear) expressed in crowdfunding project descriptions affect donations.Design/methodology/approachData on 15,653 projects across four categories (medical assistance, education assistance, disaster assistance and poverty assistance) from September 2013 to May 2019 come from a leading online crowdfunding platform in China. Text analysis and regression models serve to test the hypotheses.FindingsIn the medical assistance category, the expression of sadness has an inverted U-shaped effect on donations, while the expression of anxiety has a negative effect. An appropriate number of sadness words is helpful but should not exceed five times. In the education assistance and disaster assistance categories, the expression of sadness has a positive effect on donations, but disclosure of anxiety and fear has no influence on donations. Expressions of sadness, anxiety and fear have no impact on donations in the poverty assistance category.Research limitations/implicationsThis work has important implications for fundraisers on how to regulate the fundraisers' expressions of negative emotions in a project's description to attract donations. These insights are also relevant for online crowdfunding platforms.Originality/valueOnline crowdfunding research often studies negative emotions as a whole and does not differentiate project types. The current work contributes by empirically testing the impact of three types of negative emotions on donations across four major online crowdfunding categories.