Relationship networks, ownership type and R&D expenditures

Li Danmeng, Wang Junqiu, Zhang Yuheng

Science Research Management ›› 2017, Vol. 38 ›› Issue (8) : 75-82.

Science Research Management ›› 2017, Vol. 38 ›› Issue (8) : 75-82.

Relationship networks, ownership type and R&D expenditures

  • Li Danmeng, Wang Junqiu, Zhang Yuheng
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Abstract

The relationships with suppliers and customers constitute important business networks of enterprises, which are also vital for winning strategic competitive advantage. Using data from Chinese A share main board companies of 2007-2014, this paper examines the relation between concentration ratios of suppliers/customers and R&D expenditures. We find that there is a significant negative effect of suppliers/customers’ concentration ratios on R&D expenditures, showing that the worry of hold-up problems reducing firms’ asset-specific investments such as R&D expenditures. The above mentioned negative effect is more significant in non-SOEs. Our paper underlines the effect of supply-chain relationship networks on firms’ innovation activities.

Key words

 relationship networks / asset specificity / ownership type / R&D expenditure

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Li Danmeng, Wang Junqiu, Zhang Yuheng. Relationship networks, ownership type and R&D expenditures[J]. Science Research Management. 2017, 38(8): 75-82

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