Strategy Orientation, Innovation Capacity Endowment, and International R&D Intensity of Listed Companies in China

Abstract

Based on the endogenous factors which can affect the strategy of international R&D of China’s enterprises, an analysis is carried out on the relationship between market- and technology-orientation of the strategy and the intensity of international R&D. In addition, the mediation effects of innovation capacity endowment are discussed. On this basis, 254 listed enterprises with overseas R&D institutions approved by the Ministry of Commerce of China were taken as the sample for survey administration. The poisson regression method was adopted to test the hypotheses. Additionally, we utilized the Bootstrap method to confirm the robustness of the regression models. Results show that for Chinese enterprises with significant international R&D strategy intentions, market orientation has a significant inhibitory effect on their international R&D intensity, while the technology orientation has a significant stimulating effect on international R&D. In addition, innovation capacity has a significant positive impact on the intensity of international R&D, and plays a partial mediating role in the relationship between technology orientation and international R&D. Therefore, to promote international R&D strategies in the era of high-quality economic development, Chinese enterprises are suggested to establish an innovation-oriented strategy orientation to promote innovation cultural heritage, and to strengthen the accumulation of innovative resources and capabilities.

Examining the effects of strategic orientation and motivation on performance and innovation in the production sector of automobile spare parts

“…The concept of strategic orientation is a frequently used concept in strategic management, entrepreneurship and marketing (Liu and Fu, 2011). Strategic orientation reflects an outward-looking view of the business's strategic choices and environmental compatibility (He et al ., 2020). Strategic orientation evaluates the ways in which businesses acquire, allocate and use resources to create dynamic capabilities (Amentie Kero and Sogbossi, 2017).…”

Timely Loss Recognition Helps Nothing

“…One issue remaining in this paper concerns the perspective of industry. For instance, listed companies in the high-technology industry are required to devote more resources to R&D activities-e.g., [82][83][84][85]. Compared to other companies, there is an increasing likelihood that these companies will encounter accounting losses and thus seek to manipulate those losses-e.g., [86][87][88][89].…”

Economic Growth, Increasing Productivity of SMEs, and Open Innovation

“…The innovation strategy is more focused on developing business management to support increased productivity and product marketing [64]. Furthermore, innovation is the willingness to go beyond the current best conditions and pursue new opportunities, such as introducing new ideas from established practices and trying to do more than existing businesses, with new product designs being innovations for each business unit [65,66]. Thus, capital capacity, business management systems, business classifications, and human resources play an important role in business development and increasing productivity towards sustainable product marketing.…”