A research on the effects of executive′s ties on innovation performance of manufacturing enterprises

Abstract

Abstract: Under the background of innovation driven development strategy and culture of relationship in China, this paper empirically studies the effects of executive′s ties on innovation performance of manufacturing enterprises. This paper attempts to explore the impact of different types of social relations on enterprise innovation based on Chinese cultural background.
Based on the empirical study of listed manufacturing companies, the paper has made several conclusions: (1) executive′s ties help to increase the innovation performance of enterprises. (2) based on the emotional relationship, this study finds that the internal executive′s ties is more conducive to improving the innovation performance of the enterprise than the external executive′s. (3) based on the spatial relationship, the research found that cross regional executive′s ties is more helpful to improve enterprise innovation performance. (4) based on the perspective of emotional relationship and spatial relationship, executive′s ties can be divided into four types. This study finds that the combination of "internal executive′s ties + cross regional executive′s ties " is beneficial to improve innovation performance. (5) in areas with high marketization, executive′s ties can significantly enhance enterprise innovation performance; in areas with low marketization, executive′s ties has no significant impact on innovation performance.
Based on the research results of this paper, the following suggestions can be put forward: first of all, enterprises should attach importance to the role of executive′s ties in enterprise innovation. The results of this paper show that: executive′s ties has a significant effect on innovation performance. If enterprises want to further strengthen their own innovation ability and motivation, they should not only strengthen the material basis of innovation, but also attach importance to the role of executive′s ties. Secondly, the enterprise should match the different types of executive connections. Enterprises need to increase social capital of internal executives, so that executives are more motivated to use various information resources to make innovative decisions. Enterprises should strengthen the connection of executive in different regions, from which enterprises can obtain information resources of different regions. Therefore, enterprises should focus on the development of "internal + cross regional" type of executive′s ties. Finally, the government departments should continue to promote market-oriented reform, improve the business environment, protect the innovation achievements of enterprises, and help to enhance the positive effect of executive′s ties on enterprise innovation performance.
From the perspective of relationship types, this paper explores the impact of different types of relationship intensity on innovation performance, enriches and expands social capital theory. Specifically, the contribution of this paper is reflected in three aspects: firstly, it expands the research field of enterprise innovation. Although many literatures have discussed the influence of different factors on enterprise innovation, few literatures have studied the relationship between executive′s ties and enterprise innovation. However, this paper proposes and finds the important relationship between executive′s ties and enterprise innovation. Secondly, it enriches and develops the theory of social capital. Academic circles generally pay attention to the impact of social capital on enterprises. This paper further explores the impact of different types of executive connections on enterprise innovation. Finally, based on the actual situation that China is in the process of market-oriented reform, this paper further explores the moderating effect of the degree of marketization on the relationship between executive′s ties and enterprise innovation.

Key words: relationship, executive′s ties, innovation performance, social capital

Chen Jianlin. A research on the effects of executive′s ties on innovation performance of manufacturing enterprises[J]. Science Research Management, 2021, 42(1): 200-208.

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