Corporate technology indraught, property and inverted U-shaped performance: An empirical research on Chinese listed companies

Abstract

Abstract: This paper examines the relationship between corporate technology indraught, property and firm performance from the perspective of corporate investments using Chinese manufacturing listed companies for the period 2002-2009 as research samples. It is found that an inverted U-shaped relationship exists between technology indraught and firm performance. Technology indraught is beneficial to firm performance but only up to a tipping point due to diminishing marginal utility. Over this tipping point, excess technology indraught will have a negative impact on firm performance. This indicates that corporate technology indraught cannot sustainably improve firm performance. In addition, the nature of property has a moderating effect on the inverted U-shaped relationship between technology indraught and firm performance. The non-state-controlled companies using the external technology produce better financial performance than state-controlled companies do. The conclusion of this paper provides a new perspective and evidence for the economic consequence of technology indraught. Some valuable suggestions and theoretical guidance for enterprises to improve the absorption efficiency of external technology and rationally allocate innovation resource are put forward.

Key words: technology indraught, property, inverted U-shaped performance

CLC Number:

Xu Xin. Corporate technology indraught, property and inverted U-shaped performance: An empirical research on Chinese listed companies[J]. Science Research Management, 2015, 36(9): 45-54.

References

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