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A research on the influence of Chinese traditional industry inheritance on innovation quality Zhang Dongting， Song Aonan， Yuan Hongmei 2019, 40(2): 1-11.  Abstract ( 273 )   With the continuous deepening and improvement of reform, China’s economy is developing rapidly, science and technology are changing with each passing day, making traditional industries unable to keep up with the trend of the times. Therefore, the government proposes to upgrade the level of traditional industrial technologies and transform traditional industries with high technologies to modernize them. It can be seen that it is of great practical significance to explore the modernization and internationalization of traditional industries such as traditional Chinese medicine with distinctive national characteristics. In order to achieve the purpose of researching the impact of science and existing technology on the quality of traditional Chinese industrial technology innovations, and promoting the inheritance of traditional industries to science and existing technology, this paper locates the research object on Chinese medicine patents of Chinese medicine listed companies as the main body, and takes Chinese medicine patents of Chinese medicine listed companies originating from the Patent Search and Analysis Database of National Intellectual Property Administration and CNIPR as samples, supplemented by self-implementation information from the official websites of China Food and Drug Administration and company information data from economic websites such as Tong Hua Shun and company annual reports. On the basis of combining the quantitative dimension and the category dimension, scientific citations and patent citations of traditional Chinese medicine patents are used to characterize the inheritance of science and existing technology in the process of technological innovation of traditional Chinese medicine, and the number of times cited is used as the quality index of innovation. That is to say, the number of times cited is used as the dependent variable of this research, which characterizes the quality of technological innovation, and patent citations, cross-technical fields, scientific citations, ancient medical classics, technical standards, modern medical books are selected as the independent variables of this paper to research the impact of science and existing technology on the number of times cited, and technology breadth, R & D team size, industrialization, company size, public time are introduced as control variables.The specific research methods are as follows: Firstly, the Zero-inflated Negative Binomial Regression is used to research the static impact of traditional Chinese medicine inheritance on the quality of innovation. Secondly, the Catastrophe Progression Method is used to divide the inheritance state of traditional Chinese medicine, and the sample data of each stage are regressed to research the dynamic impact of traditional Chinese medicine inheritance on the quality of innovation. Finally, through the analysis of the empirical model, the impact of Chinese medicine inheritance on the quality of innovation is clearly presented.The research results show that: (1) The patent citations have a robust negative impact on the quality of innovation. Cross-technical field citations have a positive impact on the quality of innovation in 2005-2011, while cross-technical field citations in the static model have no significant impact on the quality of innovation. (2) The scientific citations have a significant negative impact on the quality of innovation in 2003-2004. It has a significant positive impact on the quality of innovation in 2005-2011, while the scientific citations in the static model have no impact on the quality of innovation. The technical standards and the ancient medical classics times cited have a positive impact on the quality of innovation in 2003-2004, while there are no significant impacts on the quality of innovation in 2005-2011. In the static model, the technical standards have a positive impact on the quality of innovation. Ancient medical classics have no significant impact. Modern medical book times cited have a positive impact on the quality of innovation in static model. The research further gives inspiration : (1) Low-quality patent citations will greatly affect the novelty and creativity of patents, reduce the value of patents, and the more patent citations with low quality, the lower the value of patents. Although the degree of integration of Chinese medicine industry across the technical fields has deepened year by year, the impact of the integration of Chinese medicine industry across the technical fields on the quality of patents is still weak and needs to be further improved. (2) The integration of Chinese medicine industry patents and modern sciences is constantly strengthening, and the quality of scientific inheritance is also increasing year by year. The Chinese medicine industry has higher and higher requirements for technical standards and the quality of ancient medical classics. The impact of low-quality technical standards and ancient medical classics on the quality of innovation has been decreasing year by year. At the same time, technical standards have a strong impact on the quality of innovation in the scientific literatures, while medical classics have a weak impact on the quality of innovation. Modern medical books have a strong foundation and system, which can promote the integration of different technologies and improve the quality of patents.The research results of this paper have certain practical significance. The results provide an objective reference for promoting the traditional industry to selectively absorb and inherit science and existing technology and improve the quality of innovation. Although the quantity and quality of inheritance in China have been increasing year by year, the quality of inheritance needs to be improved. Therefore, when innovating technology, inventors should not only pay attention to the quantity of science and inheritance of existing technology, but also pay attention to the quality of inheritance and fully integrate modern sciences and cutting-edge technologies in various fields to improve the quality of patents.At the same time, this paper also enriches the theoretical research. The analysis of patent citations in existing research is mostly used to study the flow of knowledge, while the research on patent quality analysis is less but more quantitative analysis. This paper makes up for the research gap. Introducing patent citation analysis into the research of innovation quality has an impact on traditional industry. On the basis of quantity dimension, category dimension is added to research the impact of patent citations on innovation quality, and the development paths of traditional industry are further explored in order to promote traditional industry and the quality of innovation. Related Articles | Metrics

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A study of M&A and innovation of listed Chinese pharmaceutical companies 2019, 40(2): 12-21.  Abstract ( 415 )   Merger and Acquisition is an important means and strategy for a company to exert the synergistic effect of management and operation and achieve sustainable development. At present, merger and acquisition has become an important way for companies to achieve extensive innovation. As a typical technology-driven industry, pharmaceutical industry has the characteristics of high investment, high risk and high return in independent technology development, and extensive innovation relying on merger and acquisition has gradually become the choice of enterprises. According to statistics, the number of merger and acquisition cases in the pharmaceutical industry in 2015 was up to 239, and the amount of merger and acquisition was 66.6 billion Yuan. The number, amount and growth rate of merger and acquisition were significantly higher than the average level of the whole society. Taking M&A cases of listed Chinese pharmaceutical companies during 2004-2015, this paper gives an empirical analysis on the influence of mergers and acquisitions on innovation performance. Specifically, we focus on three questions: the impact of merger and acquisition and the number of mergers and acquisitions on the innovation ability of enterprises, and further explores whether there are differences in the innovation performance of companies with different ownership properties after merger and acquisition. Therefore, we propose three hypotheses. Hypothesis 1 is that M&A promotes the technological innovation of listed companies in China’s pharmaceutical industry. Hypothesis 2 is that the more the number of mergers and acquisitions, the stronger the technological innovation. State-owned and private enterprises take the same decision, may bring completely different market reaction, that is, the role of the nature of enterprise ownership cannot be ignored. So Hypothesis 3 is that compared with state-owned enterprises, private enterprises have higher performance in M&A technology innovation. The contribution of this paper is reflected as follows: The existing domestic literature mostly takes high-tech industry as the research subject, and rarely takes pharmaceutical industry as the research object. The existing research patent measures the innovation ability of the company, but the patent categories have not been subdivided, which leads to errors in the overall effect evaluation.The sample we select is the M&A events of listed Chinese pharmaceutical companies, and then delete the failed M&A events, retain the events of asset acquisition, merger absorption, offer acquisition and equity transfer. The final sample was from 2004 to 2015, with a frequency of 589 observations and 102 pharmaceutical companies. Technological innovation refers to the first commercial application of new products, new processes, new systems and new services, which is manifested as the synergy effect of creating new internal knowledge or introducing new external knowledge. Existing literatures measure innovation ability from the perspective of input (such as R&D input) and output (patent). Input indicators indicate that enterprises attach great importance to innovation, and it is difficult to indicate the level of innovation ability. In addition, limited data release on R&D input reduces the effective sample size. In order to evaluate the effectaccurately, we use utility patent, design patent and application patent to measure innovation performance. According to statistics, the total number of patent applications increased year by year, from 291 in 2004 to 900 in 2015. The peak of the average total number of patents of the company was 19.6 in 2012, which has been at a relatively stable level. From the perspective of patent subdivision, the proportion of the company’s invention patent application is relatively high, and the number of utility model and design patent application has also increased significantly. And then we use panel model to estimate the effect of M&A on the innovation. In order to explore the causal relationship between mergers and acquisitions of listed pharmaceutical companies and technological innovation and reduce endogenous problems, Propensity Score Matching (PSM Model) was used in this paper to conduct dimensionality reduction processing on corporate characteristic variables, and a control group (non-merger and acquisition group) and an experimental group (merger and acquisition group) were constructed to analyze technology innovation performance. The result suggests that: Firstly, mergers and acquisitions of listed pharmaceutical companies can improve the innovation ability of the company, but have different effects on different types of patent applications. Mergers and acquisitions significantly increase the number of invention patent applications of the company, and the results are stable. It has a positive effect on utility model and total patent application, but the result is not robust. It has no significant effect on the number of design patent applications. From the economic logic to explain, after the company mergers and acquisitions, can obtain the target company technology resources, improve the innovation ability, and in the patent, a patent for invention for substantial improvement on existing products and methods, the highest technical content, was the main motivation of company mergers and acquisitions, patents, utility models and designs respectively for the design of the shape or appearance, not the pursuit of the core competitiveness of company. Therefore, merger and acquisition of the company significantly increases the number of application of invention patents of the company, which verifies the fact that the company enhances the external technology introduction through acquisition.Secondly, the more the number of mergers and acquisitions, the stronger the innovation ability, but the marginal effect of the number of mergers and acquisitions on the innovation performance decreases.Finally, mergers and acquisitions have a significant interaction with the nature of corporate ownership, which shows that compared with state-owned enterprises, private enterprises have a higher degree of technological innovation ability through mergers and acquisitions.In a word, while solving the insufficiency of internal innovation, corporate merger and acquisition can help companies break through the "innovation threshold" and quickly enter the corresponding fields, producing positive effects. Chinese pharmaceutical enterprises acquire new patented technologies through mergers and acquisitions, which can rapidly improve their innovation ability. However, they need to actively integrate and absorb the technologies of target enterprises, so as to achieve effective transformation. Therefore, the enterprise should reasonably evaluate and integrate the target enterprise’s talent, product research and development, production and other systems, thoroughly digest new technologies through continuous research and development, and lead the enterprise to improve its innovation ability, so as to promote the upgrading and development of China’s pharmaceutical industry. Related Articles | Metrics

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Cross-border post-merger integration, network embeddedness balance and innovation quality of enterprises Li Fei, Chen Yan, Zhang Liyezi 2019, 40(2): 22-34.  Abstract ( 260 )    Cross-border M&A is an important way for enterprises to break through the path dependence and resource bottleneck for opening innovation. In the first half of 2018, the amount of Cross-border M&A transactions in China dropped by 25% compared with the second half of 2017, while cross-border M&A in high-tech industry is still in the leading position. Cross-border M&A by Chinese enterprise is experiencing a period of improving quality and increasing efficiency. However, it is difficult to explain and guide the key issues of synergistic development of integration and innovation quality improvement of Chinese cross-border overseas M&As by using the theory of ownership advantage based on multinational enterprises from developed countries and the existing research on the performance of Chinese cross-border M&A. Based on knowledge integration theory and network embedding theory, we have constructed the research framework of post-merger integration, network embeddedness balance and innovation quality of enterprises in the context of Chinese cross-border M&As. High level of knowledge integration ensures the frequency of knowledge exchange and promotes the effective transfer of tacit knowledge and complementary knowledge, while the differences among experts, technological capabilities and incentive systems and governance structures increase the coordination cost of knowledge integration. Thus, we put forward the first hypothesis H1: Post-merger knowledge integration has an inverted U-shaped relationship with the innovation quality of acquiring firms. Network embedding balance is the coordination of local and overseas network knowledge, while minimizing the cost of coordination and the difficulty of knowledge transfer. Focusing only on local or overseas knowledge may lead to incomplete knowledge loci and imperfect understanding of cultures and institutions of host countries. Therefore, we propose H2a to assume that the internal and external network embedding balance can optimize the inverted U-shaped curve relationship between post-merger knowledge integration and innovation quality. It’s confrontational relationship between enterprises pursuing foreign networks or local networks due to limited resources. Geographical proximity, low cost of local cooperation and industrial agglomeration make traditional enterprises to depend more on local network. The specific advantages of firms established in domestic networks based on human capital or raw materials cannot be transferred and replicated to overseas markets, which will inevitably reduce the ability of knowledge integration and continuous innovation after cross-border M&A. Therefore, we propose H2b: when domestic network dependence is higher than foreign network dependence, internal and external network embedding balance plays a stronger role in optimizing the inverted U-shaped relationship between post-merger knowledge integration and innovation quality. The concept of industrial clock speed is to describe the dynamic change rate of industry determined by endogenous factors such as products, processes and organizational structure. When the industrial clock speed is fast, it is difficult for enterprises to maintain the competitive advantage based on an existing innovation. The direction of industrial innovation and the rapid dynamic change of new product make it more difficult for enterprises to build new technological advantages only by independent R&D. The combination of local and international partners can effectively improve the speed of knowledge flow and the heterogeneity of knowledge scope. Therefore, we propose H2c: when cross-border M&As occur in industries with fast clock speed, the balance of internal and external network embedding plays a stronger role in optimizing the inverted U-shaped relationship between post-merger knowledge integration and innovation quality.This paper uses empirical study to test hypotheses. Our sample consists of technology-sourcing overseas M&As with Chinese listed companies as acquiring firm in the manufacturing industry from 2001 to 2016 obtained from the BVD Zephyr database. Event study and multiple regression models are used to test the nonlinear relationship between knowledge integration and innovation quality in the process of overseas M&A innovation, and compares different integration modes corresponding to improving domestic innovation quality and international innovation quality. The results show that the relationship between the knowledge integration and domestic innovation quality in a cross-border M&A presents an inverted U-shaped curve. Knowledge integration and the quality of international innovation are negatively correlated. We further examine the moderate effect of network embeddedness balance and industrial clock speed and found that network balance can optimize the inverse U-shaped relationship between knowledge integration and innovation quality; the optimization effect of network balance is stronger when the domestic network efficiency is higher than foreign network efficiency. Moreover, the optimization effect of network balance is also stronger when the clock speed of the M&A industry is quicker. In this paper, GLS regression method is used to correct the heteroscedasticity and sequence correlation problems of random items in OLS model. Except for the differences in the significance of individual variables, the regression results of the main explanatory variables are consistent. It is proved that the results in this paper are robust. Therefore, the conclusions of this paper are as follows: First, the choice of knowledge integration degree in overseas M&A needs to balance the two goals of improving domestic innovation quality and international innovation quality. Moderate integration can best improve the quality of domestic innovation, while low integration can best improve the quality of international innovation. Second, despite the inverted U-shaped relationship between knowledge integration and domestic innovation quality, network embedding balance can optimize this relationship, especially when domestic network dependence is higher than foreign network dependence; third, in industries with fast industrial clock, the sensitivity of overseas knowledge integration is lower, and the balance of internal and external network embedding can enhance post-merger innovation. Our study contributes to the related literature. Breaking through the overseas M&A theory which only considers the binary relationship between isolated M&A parties, this paper starts from the global network embedding theory, focusing on how balance between domestic and foreign network embedded by acquiring firm enhance the global innovation advantage after overseas M&A. This paper, for the first time, provides a theoretical basis for Chinese enterprises to concern the improvement of innovation quality instead of "patent bubble" and "innovation illusion" in the process of knowledge integration of cross-border M&As based on the perspective of embeddedness balance between domestic network and foreign network, and help Chinese enterprises to go into the world innovation center by enhancing the quality of foreign investment. Related Articles | Metrics

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Institutional pressure, network position and e-business practice adoption of cluster firms Wu Bo, Qiu Jing 2019, 40(2): 35-43.  Abstract ( 292 )    To conform or not is the core problem for organizations under institutional pressures. The institution theory and resource-based views provide conflicting ideas on this problem especially for those organizations in different network positions. The former argues that the central position increases the visibility of the firms in the field and the strength of pressures, which motivates those firms to conform to the institutional demands. And the latter argues that the central position of the firms can acquire more information and resources, which gives them the opportunity and the ability to conduct institutional entrepreneurship and challenge the institutional prescription. So how to deal with institutional pressures for those firms in different positions still need further theoretical and empirical studies. Integrating complex institution theory and RBV, we theoretically analyze the influencing mechanics of institutional pressures and network centrality on e-business practice adoption in industry cluster. According to the classical institution theory, we divide institutional pressures into regulative pressure and normative pressure, and presume the positive relationship between the two different pressures and practice adoption of cluster films. Considering the network positions and regulative pressure, we argue that cluster firms in central position have more resources than those firms in peripheral position, so they can form the interdependence relationship with the local government, which gives those firms the opportunity to change the local government’ policies designs to fulfill both sides’ value. So those central cluster firms are more intent to comply with the policies. But for cluster firms in peripheral position, they can hardly form the interdependence relationship with the local government, and can also escape from the eyes of local government easily, which means they will not fulfill the policies of local government effectively. Thus, we get the hypothesis 3 that the central position and regulative pressure have positive interactive effect on practice adoption of cluster firms. Considering the network positions and normative pressure, we argue that cluster firms in peripheral position must depend on the local industrial system because of the poor internal resources, and comply to the local norms, or they will be expelled from the local industrial system. But for cluster firms in central position, they can depend on themselves and will not have to obey the norms of local industrial system. Thus, we get the hypothesis 4 that the central position and normative pressure have negative interactive effect on practice adoption of cluster firms.The objective of the empirical study is the Shangyu Umbrella Cluster Firms and their e-business adoption decision. Since 2013, Zhejiang government promote the policies of “the replacement of traditional markets by e-business”, which formed the transformative institutional pressures in the region. Then many firms had to decide whether to adopt e-business under the strong institutional pressures about “the replacement of traditional markets by e-business”, which provide the effective research environment to testify the organizational responsive mechanics under institutional pressures. During 2015.12-2016.01, we collected 146 effective questionnaires from Shangyu Umbrella Industry Cluster, which is one of famous industry clusters in Zhejiang Province. With statistic software SPSS, reliability and validity analysis were conduct, and the results indicated our data have good reliability and validity. Then correlation and regression analysis were conducted to testify hypotheses, and the analysis basically prove the four hypotheses. Based on regression analysis, the empirical study reveals the following conclusions. First, institutional pressures have positive effects on cluster firms’ e-business practice adoption, which confirms the main idea of institutional theory. Second, regulative pressure and network centrality have positive interactive effect on cluster firms’ e-business adoption. This indicates the cluster firms in central position are more sensitive to the regulative pressures, and are more inclined to conform to the demand of the local government. The reason is the interdependence between those firms and local government, which motivate both parts to produce win-win policies and induce those cluster firms to conform the regulative pressure. Third, normative pressure and network centrality have negative interactive effect on cluster firms’ e-business adoption. In contrast, the cluster firms in peripheral position are more sensitive to the normative pressure just because of the dependence of those firms on the local industrial system, so they are more inclined to conform to the norm of local industry cluster. As for cluster firms in central position, they have enough resources and information and less depend on local industrial system as those peers in peripheral position, so are not really care about regional normative pressure.Our results have important value for institutional theory, especially for the researches on the organizational responsive mechanics under institutional pressures. Through the integrative of complex institution theory and RBV, we provide new explanation on the conflicting views about responsive mechanics under institutional pressure in different network position, which promotes the development of the research on firm practice adoption under institutional pressure. Also, our results have important practical value. For local government, the focus on the leading firms of public policies is proved to be right strategy. Because those firms always occupy central position, they are more sensitive to the regulative pressure from local government, and inclined to conform to local demands, which also forms the basis for the normative institutional pressure in the region. And under normative pressure, the peripheral cluster firms are more inclined to obey the rules. This means the local government can motivate the whole cluster firms with the help of leading firms.This research also has several limitations which provide the future research directions. Firstly, the institutional entrepreneurship of cluster firms in central network position need more empirical studies. Secondly, the influencing mechanics of regional policy on the whole industry cluster need more theoretical and empirical studies. Thirdly, our research model can be verified by other clusters and other types of practice adoption to improve the external validation. Related Articles | Metrics

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Judicial protection, legal service and technology innovation Zhou Zhou, Xia Xiaoyu, Ran Rong 2019, 40(2): 44-53.  Abstract ( 303 )   Technological innovation is the fundamental driving force for economic growth, and judicial protection and legal services are important tools for promoting technological innovation. However, the researches on the impact of judicial protection and legal services on technological innovations have to be deepened, and their conclusions are inconsistent. The reasons are: (1) The evaluation on degree of judicial protection is not comprehensive enough. For example, the practice of using a single indicator (such as the proportion of lawyers in the total population or the number of courts in the first instance of patent disputes as a substitute variable) is simple and easy, but the problem of partiality is more obvious. The method of measuring from the perspective of intellectual property legislation ignores distinctions between legislation and law enforcement, while overestimating the actual level of protection in developing countries. China is still perfecting the rule of law, and the degree of law enforcement still lags far behind legislative practice. (2) The research scope is too narrow, and it should not be limited to the disputes on intellectual property rights, infringement, etc., and should focus on comprehensive judicial protection covering intellectual property output and application. Moreover, research on the relationship between judicial protection and different levels of technological innovation and regional differences remains pending. (3) Ignore the role of legal services.Based on panel data from 30 provinces and municipalities in China between 1998 and 2013, this paper integrates technological innovation, judicial efficiency, judicial quality, and legal services into a unified endogenous framework, which evaluates the judicial efficiency by the settlement rate. This work uses the ratio of the number of civil administrative protests closely related to the judicial protection of scientific and technological innovation to the number of civil administrative cases as an indicator for the quality of justice. We use the number of lawyers per 10,000 people as an indicator of the legal service status. Because judicial protection and legal services have a certain lag on the impact of technological innovation, and in order to overcome potential endogenous problems, the lag phase of all explanatory variables is substituted into the regression equation. This paper empirically analyzed the relationship between judicial protection, legal services and technology innovation by means of the regression with FE model and Driscoll-Kraay standard errors method. The estimation method is suitable for short-panel data, and can better control heteroscedasticity between groups, autocorrelation within groups, and contemporaneous correlation problems between groups. Progresses achieved in this work include: Firstly, the law enforcement link of judicial protection is taken as the main entry point, and judicial protection is subdivided into judicial efficiency and judicial quality, and comprehensively examines the impact of judicial protection and legal services on China’s scientific and technological innovation. Secondly, the scientific and technological innovations are divided into two levels to analyze the contribution of judicial protection and legal services to different levels of scientific and technological innovation. Finally, the regional differences in judicial protection and the impact of legal services on technological innovation are explored.The analyses revealed that: judicial protection and legal services have a significant positive effect on China’s scientific and technological innovation. Meanwhile, the legal services make the private relief a powerful complement to the public relief. Judicial quality, rather than the judicial efficiency, has a greater overall effect on technological innovation. For different levels of technological innovation, judicial efficiency has a significant positive impact on the invention, but its effects on utility model and design are insignificant. While utility models and designs are more sensitive to the judicial quality, legal services have a greater role in promoting innovation. In addition, there is an obvious regional variation in the importance of judicial efficiency, judicial quality and legal services on the technological innovations. The positive effect of judicial efficiency on technological innovation is more notable in the eastern region; the improvement of judicial quality has a more significant promoting effect on technological innovation in the central and western regions. Finally, improvement in legal services plays the most important role for promoting technological innovation in the western region.Apart of strengthening the judicial protection of scientific and technological innovation, on the one hand, we must adhere to the principle of “both hands and hard work” in judicial efficiency and judicial quality. Meanwhile, in the specific implementation, we should target different levels of innovation and the development stages according to different regions. Focus on it. Under the premise of observing the law of judicial work and ensuring the quality of justice and for the purpose of encouraging high-level innovation, we should focus on exploring new measures to improve judicial efficiency in judicial reform, but in the central and western regions where judicial quality is not fully guaranteed, we must not be blind in the pursuit of judicial efficiency. The promotion of judicial quality should be a priority. In addition, strengthening the judicial protection of scientific and technological innovation requires not only scientific and rational optimization of the internal resources allocation of the court, but also the need to integrate external forces, strengthen the cultivation of social services such as legal service institutions, and promote the scale, specialization, branding and internationalization of the legal service industry. The development of the direction has made legal services a bridge and link for the effective connection between public relief and private relief. On the one hand, the use of the professionalism and efficiency of legal services to establish a system of technical identification of judicial identification, expert support, etc., improve effectively the quality and efficiency of judicial protection of scientific and technological innovation. On the other hand, intellectual property owners are encouraged to use legal professional services to defend their rights, raise awareness of intellectual property rights of intellectual property rights, shock the infringers, and resolve a large number of intellectual property disputes before the prosecution, thus alleviating the shortage of judicial resources. Related Articles | Metrics

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Strategies for coping with legal risks of patent co-ownership in Sino-US cooperative innovation Liu Shan, Shen Jiapeng, Yu Xiang 2019, 40(2): 54-64.  Abstract ( 255 )   Sharing and utilization of intellectual property rights in cooperative innovation are focused issues in Sino-US scientific and technological cooperation, especially in the context of China-US trade friction. Among all the focused issues, patent co-ownership is a difficult point. The existing literature explores the characteristics of joint patents, main reasons and countermeasures for the legal risks of joint patents. However, it did not analyze risks caused by legal differences in different countries in cross-border scientific and technological cooperation. Based on the practice of US-China Clean Energy Research Center project, this article conducts a questionnaire research and adopts Pareto’s principle, identifies that risks caused by legal differences between the US and China are the main obstacles to Sino-US joint patenting. By comparing both countries’ provisions on patent law and principles in typical cases, this article analyzes the detailed legal risks Chinese participants faced in Sino-US cooperative innovation on joint patent filings, patent rights disposal and dispute settlement. Accordingly, this article establishes an overall mechanism for coping with legal risks of patent co-ownership between the US and Chinese entities, formulates risk handling principles such as making differences and risks clear, keeping the balance of interests and referring to international conventions, and proposes specific countermeasures and suggestions for strategic arrangements in agreement terms negotiation.By taking the US-China Clean Energy Research Center project(CERC) as a case, this article studies the major obstacles of co-owning patents in Sino-US cooperation innovation. Using questionnaires, face-to-face interviews and telephone interviews, it investigates the specific concerns of CERC Chinese participants on patent co-ownership with US counterparts. Analyzing by Pareto principle, it finds out that the legal differences between two countries caused difficulties in joint patent filing. Then, this paper compares legal stipulations and principles of co-ownership in these two countries. It sorts out relevant provisions in Chinese Patent Law, General Provisions of the Civil Law, Civil procedure law and the Supreme Court Judicial Interpretation, and compares to provisions in America Invents Act (AIA, 35 U.S.C.) and important principles in typical precedents such as Talbot. V. Quaker-State Oil Refining Co.; Schering Corp. V. Roussel-UCLAF SA; and Willingham V. Star Cutter Co.. From the aspects of “right to file a joint patent”, “right to disposal common interests” and “right to file a lawsuit”, it concludes the differences between these two countries. Further, it discusses the risks that may arise. For example, the “omitted inventor” system in US patent law enables US entities to file a joint patent application without Chinese co-inventor’s permission and raises the risk of interests damage for Chinese counterpart. According to Chinese Patent law, no sole license or exclusive license may be granted to a third party without permission of joint patentees. However, it is not limited in the United States. This may limit the implementation of patent right in China. In addition, Chinese law allows a party of joint patent holder to sue on its own. But the US law does not. It makes it more difficult for Chinese parties to claim their joint patent rights in the United States alone.Accordingly, this article proposes some countermeasures to deal with the above obstacles and risks. It establishes an overall mechanism for coping with legal risks of patent co-ownership between the US and Chinese entities. Then, it formulates risk handling principles such as making differences and risks clear, keeping the balance of interests and referring to international conventions. In addition, it proposes specific countermeasures and suggestions for strategic arrangements in agreement terms negotiation.First, in the case of filing a joint patent application, it suggests to stipulate in the agreement that, “It should be agreed that an application for a joint patent can only be filed if the parties in the United States and China jointly agree”. In addition, it may also be agreed that one party is responsible for completing the patent application and maintenance matters in its own country and paying the relevant expenses, another party shall provide necessary assistance, and then costs of the application shall be shared after the patent authorization result comes out.Second, when licensing joint patent right, both parties shall agree on the licensing type, income distribution and rights of disposal. It recommends stipulating that “In order to protect the interests of all parties, a co-owner may grant a non-exclusive license to the third party to implement the joint patent without the consent of other co-owners, but the third party shall have no competitive relationship with other patent co-owners. Besides, exclusive license, sole-license and sub-license shall be subject to the unanimous consent of all co-owners. In case of violation, the party who grants the above three type license shall pay for the losses incurred."Third,the internal disputes settlement method between co-owners shall be stipulated, and the external disputes settlement method for the occurrence of external infringement shall be clearly defined. In response to the infringement of joint patent rights by external third parties, it suggests to stipulate as follows: (1) A co-owner shall be allowed to file a lawsuit on its own, and other co-owners may waive the substantive rights without participating in the lawsuit, but shall not prevent the prosecution; (2) The party who files the lawsuit shall afford the costs of the lawsuit, enjoy the compensation received, or bear the loss.In summary, this article eventually establishes a legal-risk-coping mechanism with proposed agreement arrangements to reduce the risks raised by legal differences. It points out at the end that through this way, it could reduce legal risk, enhance mutual trust, and promote cooperative innovation and achievements sharing. Related Articles | Metrics

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Exploring the black-box of insufficient compensation in patent infringements from the perspective of encouraging innovation Li Xiaotao, Yuan Xiaodong 2019, 40(2): 65-75.  Abstract ( 212 )   During the process of implementing the innovation-driven development strategy, patent holders have to suffer from the dilemma of far low compensation for patent infringements in China. It has attracted a strong criticism in recent years. To address the problem of insufficient compensation, Chinese government has triggered the fourth revision of Patent Act, which focuses on “improving patent protection and strengthening law enforcement”. However, how to determine the amount of compensation for patent infringements is still a black-box in China. A few literatures discussed insufficient compensation for patent infringements in China from an empirical perspective.To close this gap, the paper endeavor to explore the black-box of “insufficient compensation” and further understand the legal system related to patent damage awards. To some extent, the amount of compensation decided by courts is regarded as a rational mechanism for detecting the legal value of patent-in-suit. In this paper, the research question is what key factors that may affect insufficient compensation for patent infringements in China. To do so, the paper constructs a series of regression models to reveal what primary elements affecting damage awards are, by taking1185decisions of patent infringement lawsuits in China as samples. Our empirical studies show that at least three important factors contribute to the insufficient compensation for patent infringements in China. First, the business value of patent-in-suit can strongly affect the amount of compensation decided by courts. The business value of a patent, namely private value, is used to sustain exclusion rights and can be measured by a number of indexes. In general, Chinese patents can be divided into three categories, which cover invention patent, utility model patent and design patent. However, our empirical results show that invention patents can achieve more compensation, while design patents may receive less compensation than other types in China. The main reason is that the intrinsic value of patent is different. In addition, whether a patent-in-suit experience invalidates process has positively correlated with damage awards. A patent usually gets more compensation than other patents if experienced invalid process. The main reason is that the excellent quality of patent-in-suit contributes to patent value enhancing.Second, the protecting capacity of a patent holder has positively correlated with patent damage awards. Our empirical results show that a patent holder who is company can attain more compensation than individuals. Patent litigation is a complex process of detecting patent legal value. Patent damage awards can be significantly affected by patent holders’ experience and skill, besides patent intrinsic value.In general, courts follow the principle of “full compensation”, which refers to damage award should be adequate to compensate for patent infringement. There are a lot of individuals assert patent right against infringers based on a single patent in practice. However, these individuals usually are lack of the outstanding capacity for asserting sufficient compensation. In addition, the number of litigation filed by patent holders based on the same patent is positively associated with patent damage awards.Third,the method of calculating compensation used by courts has played a part of the intermediary role in determining the amount of compensation. That is, the value of patent-in-suit and protecting capacity of plaintiff have positively correlated with the method of calculating compensation used by courts, and the approach of determining compensation is closely associated with the amount of compensation. According to the Section 65 of Chinese Patent Act, courts should follow the order to select an appropriate method of calculating damage awards: actual losses, infringer’s gains, referencing patent royalty and statutory compensation. The purpose of statutory compensation is to pursue an efficient and initial way to resolve the problem of hardly determining damage awards in practice. However, most of courts prefer to use the method ofstatutory compensation to determine compensation for patent infringements in China. On the one hand, it is rational that courts selected the method of statutory compensation to determine damage awards for design patents owned by individual in practice. One of reasons is that the cost of detecting patent infringement in detail is very high. Moreover, many patent holders cannot prove their actual losses and hardly bear the burden of proof. In addition, the value of patent-in-suit is usually not high and the losses could not be a great magnitude of harm. Combining these elements together, courts prefer to apply the approach of statutory compensation in practice, because courts pursue avoiding an embarrassment that defendants have consisted of infringement but plaintiffs cannot receive any compensation in China. On the other hand, the wide application of statutory compensation could result in insufficient compensation for infringing high quality patents. Our empirical results highlight that compensation that decided by statutory compensation approach is less than no statutory compensation, such as actual losses, infringer’s gains and referencing patent royalty. Patent holders with strong protecting capacity would take the burden of proof and actively assert invention patent rights. If courts select the approach of statutory compensation to determine damage awards in these cases, the amount of compensation could be less than the other methods. As a result, the approach of statutory compensation used by courts would contribute to less compensation for patent infringement.How to assert damage awards is likely to be a “black box” for most patent holders in China. This leads to some patent holders give up asserting patent rights due to low compensation for patent infringement. To encourage technology innovation, China should improve the amount of compensation for patent infringement. Therefore, several suggestions are proposed in this paper. First, patent holders should increase the business value of patents in lawsuits. Second, improving the protecting capacity of patent holders is another important way to increasing the amount of compensation for patent infringements. More importantly, courts should restrict the application of statutory compensation in patent-infringement lawsuits. More applying the other method, such as the losses incurred to the patentee, the gains obtained by the infringer or the royalty obtained for the patent, could provide sufficient compensation to patent holders. Related Articles | Metrics

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Government R&D inputs, environmental regulation and efficiency of agricultural S&T innovation Zhao Lijuan, Zhang Yuxi, Pan Fanghui 2019, 40(2): 76-85.  Abstract ( 281 )   Environmental regulation and government R&D input are two difficult issues restricting the development of agriculture. Agricultural science and technology innovation has obvious externality, such as monopoly of R&D resources and information asymmetry which leads to the existence of “market failure”. Environmental regulation can effectively solve the market failure caused by science and technology innovation. The government works hard to realize the “win-win” between agricultural economic growth and environmental protection, of which the keys are to obtain the best intensity ranges of government R&D input and environmental regulation. The moderate environmental regulation has a leading-effect on government R&D investment and then produces the “compensation effect of innovation” to the agricultural science and technology innovation behavior. Thus, measuring the impact of environmental regulation and government R&D input on the efficiency of agricultural science and technology innovation is of great significance to study the sustainable development of modern agriculture. The paper has two research features. First, the paper considers simultaneously the effects of both environmental regulation and government R&D investment on the innovation efficiency of agricultural science and technology from the perspective of industry. Second, the super logarithm stochastic frontier approach is used to measure the efficiency of agricultural scientific and technological innovation, which is considered as the research object, and then the panel threshold model is applied to study the nonlinear effects of environmental regulation and government R&D on the efficiency of agricultural scientific and technological innovation to investigate the optimal ranges of environmental regulation and government R&D input. The structures of this paper are as follows: the first section is the introduction. The second section presents research design. The third section gives empirical analysis results. The main conclusions and policy implications are provided in section four.In this paper, 30 provincial panel data from 2004 to 2015 are used to measure the efficiency of agricultural science and technology innovation in China by using super-logarithmic SFA model. The results show that the government R&D investment and environmental regulation have significant effects on agricultural science and technology innovation at the 1% significant level, which indicates that the government R&D investment and environmental regulation have played important roles in promoting the efficiency of agricultural science and technology innovation. This is because that the government R&D investment has a leverage effect and the environmental regulation provides good production conditions and ecological environment for agricultural production, promoting the efficiency of agricultural science and technology innovation. Among the control variables, only the development level of agricultural productivity is not significant, the rest variables are significant, in which the abilities of infrastructure and innovation environment promoting the efficiency of agricultural science and technology innovation are much stronger than that of the human capital.Then, to play the role of environmental regulation and government R&D investment in promoting the efficiency of agricultural science and technology innovation in China, this paper uses the panel threshold model to test threshold effects of the two factors on the efficiency of agricultural innovation. Taking the government R&D input intensity and environmental regulation intensity as threshold variables, the threshold effects are further discussed to determine the optimal ranges of government R&D input intensity and environmental regulation intensity. The results show that the single threshold effect of government R&D investment, and the single, double and three threshold effect of environmental regulation are significant. The threshold effects on the efficiency of agricultural science and technology innovation are of great significance to improve the efficiency of agricultural science and technology innovation in China. The optimal interval of government R&D input intensity is above 0.11, and the influence coefficient is 0.194, which means the government R&D input can promote the efficiency of agricultural science and technology innovation continuously. The reason is that the private sector is unwilling to provide investment due to the greater externality and risk of the agricultural science and technology innovation, namely "market failure". The government acts as a powerful supporter for R&D, which needs to provide the necessary financial support for agricultural research and development. The excessive intensity of government R&D investment will also stimulate the investment in agricultural R&D resources and have a leverage effect, which will enable the government R&D funds to play the role of “accomplishing a great task with little effort by clever maneuvers”, and then improve the efficiency of agricultural science and technology innovation to maximize economic benefits. The optimal range of environmental regulation intensity is less than 0.62. Environmental regulation has a significant positive effect on the efficiency of agricultural science and technology innovation, and the influence coefficient is 0.798. The reason lies in the fact that in the aspect of controlling environmental pollution, the government has invested too much financial funds to improve the agricultural ecological environment leading to the agricultural scientific and technological innovation lack of sufficient fund motive force, and the efficiency of agricultural scientific and technological innovation reduced. Only when environmental regulation and government R&D input are in a reasonable range, can environmental regulation policy increase government R&D investment through “incentive effect”, affecting agricultural scientific and technological innovation behavior and producing “innovation compensation effect”, and can government effectively solve the dilemma of agriculture, improving the level of agricultural science and technology innovation, and promoting the sustainable development of agricultural economy.Therefore, in the environment of the environmental regulation, the government should play dominate role in the input of agricultural science and technology, and provide rich R&D funds and good innovation environment for agricultural scientific and technological innovation. First, the government should continue to expand the scale of government R&D investment so that it can reach the investment level of developed countries as far as possible.And it is necessary to prevent the low efficiency or inefficiency of government R&D investment by ensuring the intensity of government R&D input within a reasonable range. Second, in the aspect of environmental regulation, we should formulate feasible environmental regulation policies according to our national status. Neither increasing environmental costs blindly, nor ignoring the positive role played by environmental regulation policies is recommended. We should strengthen the depth and breadth of environmental regulation to promote the innovation of agricultural science and technology, and realize the “win-win” between agricultural economic development and environmental protection. Under the strict environmental regulation, adjusting the government R&D input intensity effectively and increasing the intensity of agricultural scientific and technological innovation greatly can promote the efficiency of agricultural scientific and technological innovation. Related Articles | Metrics

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A research on Chinese manufacturing enterprises’ low-end breakthrough from the perspective of path evolution Su Jingqin, Gao Xin 2019, 40(2): 86-96.  Abstract ( 225 )   The new context formed by economic globalization and the emergence of new technologies has not only expanded but also extended the low-end breakthrough directions and paths of enterprises in “catch-up” countries. Based on the systematic review of relevant research at home and abroad, it can be found that the current analysis mostly make theoretical deduction from the macro level in order to answer how to climb the global value chain. Several researches identified the main influence factors and the potential climbing paths of low-end breakthrough, and the others carry out empirical test on several industries or Original Entrusted Manufacture (OEM) enterprises. However, these studies failed to systematically interpret that how do Chinese enterprises in the post-development situation get rid of being “captured” or “locked” in the low-end aspects from the micro level of breakthrough mechanism. This study is not limited to the low-end breakthrough of OEM enterprises in the global value chain (GVC), but from the perspective of two different product types: simple products and complex products at the micro level. This study conducts a longitudinal case study between Wanxiang Group which is a representative enterprise in the field of auto parts deeply embedded in GVC and China Railway Rolling Stock Corporation (CRRC) Dalian Co., Ltd. which is the main enterprise of locomotive industry’s national value chain (NVC), thus comparing the similarities and differences of low-end breakthrough process between enterprises started with simple products and complex products in different context. Finally, the research found that the simple product and the complex product enterprises have diverse emphasis on the low-end breakthrough process owing to the different embedded context which is reflected in the governance structure and target orientation of the global or national value chain , but they all conform to the rule of definition extension and evolution—“accepted definition→cooperation definition→active definition”, so that by alternating the position on both vertical chain and horizontal chain, the risk of being locked in the low value-added and low-end technology aspects is eliminated. Therefore, the compound path under the dual dimension is the key to the low-end breakthrough of Chinese manufacturing enterprises. The research conclusion obtains the path selection and evolution rules of low-end breakthrough from the mechanism level, which is more universal and explanatory for “catch-up” countries’ manufacturing enterprises with different product types in complex transition context. Related Articles | Metrics

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Strategic integration modes of knowledge and competitive advantage: A multi-case study of high-tech entrepreneurial firms Guo Runping, Cai Li, Wang Ling 2019, 40(2): 97-105.  Abstract ( 280 )   How to integrate strategically specialized knowledge is critical for high-tech entrepreneurial firms to win in the market competition. Although some scholars propose “strategic integration of knowledge” in their research, its modes and effects have not been explored. Planned strategy and emergent strategy are two different modes of strategic formation. Planned strategy emphasizes conscious strategy formulation before actions while emergent strategy is a mode of incremental strategy formation through action and trial-error learning. These two strategic formation modes can be combined for firms to achieve superior performance. According to knowledge-based theory and a perspective of strategic knowledge management, knowledge integration is critical for firms to develop organizational capability for value creation and capture, which is required to be consistent with these strategic formation modes for realizing the maximized strategic value of knowledge. In this research, we use an exploratory multi-case study of 4 Chinese high-tech entrepreneurial firms to explore strategic integration modes of knowledge and their relationship with high-tech entrepreneurial firms’ competitive advantage in the context of China’s transition economy. To ensure the validity of case study, we collected data from a variety of sources. Specifically, the first-hand data was collected from the field observation, survey and also the semi-structured interviews with the entrepreneurs and top management team members about the knowledge integration practices in the process of strategic formation in these firms. And the second-hand data is mainly acquired from the documents provided by the interviewed firms and the news on the website such as Baidu and firm homepage. These data can form triangle case evidence for our analysis. According tothe 24-hour rule, we kept a record of interviews and have a discussion about them on the day when we finish the interviews. Our research data is mainly the first-hand data collected from case interviews. And we also use second-hand data to make up with the inefficiency of interview documents and avoid the bias caused by retrospective interpretation and impression management. To analyze strategic integration modes of knowledge and its relationship with competitive advantage in high-tech entrepreneurial firms, we put the documents into codes base on grounded theory. In the case analysis, the words and phrases related to strategy formation and knowledge integration are coded and conceptualized into first-order concepts firstly. Then, second-order concepts are formed through selective coding. Finally, we provide clear definitions for emergent integration and planned integration of knowledge and put forward the relevant propositions.Results of case analysis indicate that strategic integration modes of knowledge involve the processes of synthesizing and exploiting internal and external knowledge to formulate or realize strategic goals, which include emergent integration and planned integration of knowledge. Specifically, emergent integration of knowledge emphasizes strategic experimentation, learning by doing and knowledge reconstruction to formulate strategic goals gradually. While planned integration of knowledge refers to the realization of existing strategic goals through planned learning with predefined goals to make up with the knowledge gap. We find that either emergent integration or planned integration of knowledge has a positive effect on high-tech entrepreneurial firms’ competitive advantage. Under high uncertainty, the strategic goals in high-tech entrepreneurial firms are always changed so that these firms are required to apply emergent integration of knowledge to integrate real-time information flexibly for dynamic strategy adjustment with the environmental changes. While planned integration of knowledge provides high-tech entrepreneurial firms with clear directions and specific order for knowledge integration to realize the existing strategic goals with fewer resources. Moreover, we also find that emergent integration and planned integration are not mutually exclusive but complementary, which is consistent with the dominant academic view about the relationship between emergent strategy and planned strategy. Scholars in strategy domain argue that firms can achieve the optimal market position by combining emergent strategy and planned strategy in the meantime. Therefore, we propose that the interaction between emergent integration of knowledge and planned integration of knowledge has a positive effect on high-tech entrepreneurial firms’ competitive advantage. Overall, we build the conceptual research model based on the relationship between strategic integration modes of knowledge and high-tech entrepreneurial firms’ competitive advantage.Our research has important theoretical implications in several folds. Strategic integration of knowledge is the core process of strategic knowledge management. However, few scholars provide clear definition for the concept of “strategic integration of knowledge”. Our research opens the black box of strategic integration of knowledge and enriches the perspective of strategic knowledge management by clarifying its different modes and dimensions of each mode based on exploratory multi-case study. Moreover, although scholars widely agree that strategic integration of knowledge is important for firms’ survival and development, few scholars provide specific and systematic explanations for how high-tech entrepreneurial firms integrate diverse entrepreneurial knowledge to achieve competitive advantage. Therefore, our research enriches and extends knowledge-based theory and knowledge integration literature by exploring the relationship between strategic integration modes of knowledge and high-tech entrepreneurial firms’ competitive advantage with case evidence.Our findings also provide high-tech entrepreneurial firms with important theoretical guidelines about how to capture the strategic value of knowledge efficiently and effectively in the context of transition economies. On the one hand, transition economies characterized by emerging markets and fast-changing institutions provide high-tech entrepreneurial firms with diverse platforms to explore new opportunities to discover and create new market demands. In an effort to achieve greater growth, high-tech entrepreneurial firms are required to apply emergent integration of knowledge to exploit a variety of knowledge for strategy adjustment to capture new opportunities. On the other hand, how to provide specialized products or services with higher quality at a faster pace is the key for high-tech entrepreneurial firms to gain profits under fierce competition in their industries. Planned integration of knowledge helps high-tech entrepreneurial firms to quickly capitalize existing opportunities base on clear strategic goals at a lower cost, and thus these firms can survive in the fierce market competition. As a result, high-tech entrepreneurial firms need to leverage the complementary effect of emergent integration of knowledge and planned integration of knowledge to explore and exploit opportunities for sustainable competitive advantage in the context of transition economies. Related Articles | Metrics

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A study of the tacit knowledge transmission model in a WeChat group Zhu Hongmiao, Zhang Shengtai, Yan Xin 2019, 40(2): 106-115.  Abstract ( 394 )   Tacit knowledge has become the most important strategic resource for enterprises to obtain sustainable competitive advantage in the era of knowledge economy driven by information technology. Knowledge management theory believes that the transmission of tacit knowledge is an effective way to acquire and innovate knowledge for employees in the enterprise. The construction of knowledge in the organization relies heavily on the propagation of tacit knowledge between demanders and users considering characteristics of organizational cognition. A few new propagation paths begin to emerge with the rapid development of information and communication technology. WeChat group has become an important platform for tacit knowledge transmission in an enterprise and among enterprises. WeChat group is a virtual social platform that uses social network technology to achieve efficient communication and collaboration among employees within the enterprise. It eliminates the obstacles of time and space. WeChat group gathers employees together in a virtual way to communicate and mine the ideas of the group. It also realizes the online communication and dissemination of knowledge in the enterprise. Most of the users in WeChat group are employees within the same enterprise compared with weak online social networks such as Weibo. The users in a WeChat group have a higher sense of community identity and more trust among them. Their communication is more active and direct. A WeChat group gradually forms a cultural circle with a clear topic. Therefore, the knowledge transfer in the WeChat group is more interactive and efficient. The employees are more likely to get work-related tacit knowledge in their WeChat group. Furthermore, employees can understand the social network and knowledge of other employees by observing the topics and commenters of the exchanges in WeChat group. It can promote the recognition and retrieval of knowledge by employees. It also improves the efficiency of knowledge dissemination. In summary, WeChat group has become an important channel for tacit knowledge dissemination within enterprises. However, few studies have explored the law and characteristics of tacit knowledge spreading in WeChat Group. In-depth study of the mechanism of tacit knowledge transmission in WeChat group is of great significance for the realization of knowledge dissemination within the enterprise. In view of this, this study constructs the model of tacit knowledge propagation in WeChat group based on the theory of complex network propagation dynamics. We study the propagation mechanism of tacit knowledge in WeChat group and explores the corresponding promotion strategy of tacit knowledge transmission from the perspective of complex network. We analyze the established dynamic model and the threshold conditions for distinguishing whether a kind of tacit knowledge propagates in a WeChat group are derived. The transmission threshold R0 in this study is identical to the basic reproductive number in infectious disease dynamics. The tacit knowledge transmission threshold indicates that when all users in the WeChat group are users without tacit knowledge, the maximum number of other new users with this tacit knowledge by a knowledge owner in the average time required to forget the knowledge at the initial moment of tacit knowledge propagation. When R0>1, the tacit knowledge will propagate in the WeChat group; when R0<1, this tacit knowledge gradually disappears in the WeChat group. This study concludes that the knowledge transmission threshold is always a finite number by analyzing the influence of the degree distribution of the WeChat group on the propagation threshold. The following conclusions can be drawn from our research: (1) The threshold is always a finite number related to the user’s willingness to share knowledge and the ability to absorb knowledge. It is also related to the average and the second moment of the network. It can be seen from the above conclusion that all users in the WeChat group do not need to have tacit knowledge sharing intention or tacit knowledge absorption ability at the same time. Tacit knowledge will spread in the WeChat group as long as the number of tacit knowledge owners with shared willingness and the number of absorbing tacit knowledge recipients at the same time reach the corresponding critical values. Therefore, the administrator can realize the sharing of tacit knowledge in the WeChat group in a shorter time and at a lower cost according to the threshold condition. (2) Results also show that the network structure of WeChat group has a significant impact on tacitknowledgetransmission.The topology of the online social network composed of users’ communication in WeChat group has an important impact on tacit knowledge transmission. First, increasing the ratio of the second order moment to the average degree of the network can increase the threshold. It can lead to that tacit knowledge spreads faster in a scale-free network and the final scale of transmission are larger. The spreading speed is faster in scale-free network than in homogeneous network. The final size and the transmission threshold are larger in scale-free network than in homogeneous network. Therefore, if the difference between the number of communication times in unit time among the users is greater and then the final propagation scale is larger and the propagation speed is faster in the WeChat group. It can be seen from the above conclusion that appropriately changing the number of exchanges in the user’s unit time can promote the spread of tacit knowledge in the WeChat group. Managers can select some users with more average communication times per unit time and encourage them to interact with other users. It can increase the difference between the number of exchanges in unit time among the users. That is, the heterogeneity of the network degree distribution is increased. It can increase the final scale of tacit knowledge dissemination in WeChat groups and reduce the time to reach the final scale of knowledge transmission. (3) It is concluded that the number of knowledge owners in the WeChat group at the initial time of propagation is not a key factor affecting the knowledge transmission in the WeChat group. Therefore, managers do not have to blindly introduce knowledge owners from other companies to promote the knowledge transmission in the WeChat group by increasing the number of knowledge owners. Related Articles | Metrics

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TMT characteristics, pay gap and performance of new ventures Sun Kai, Liu Xiang, Xie Bo 2019, 40(2): 116-125.  Abstract ( 464 )    In recent years, characteristics and pay gap of top management team (TMT), the factors that impose impact on decision-making efficiency, have been a hot issue in research field of TMT. Most existing researches focus on TMT’s work experience, education background, tenure time and pay gap. There is still a lack of research on the influence of TMT characteristics on new venture performance (NVP) and the moderating effect that pay gap plays in it. This paper aims to explore how TMT characteristics affect NVP through the moderating role of pay gap. Therefore, the hypotheses of the relationships among TMT characteristics, pay gap and NVP are proposed，and a theoretical model is built up to analyze the impact of TMT characteristics and pay gaps on NVP. A regression analysis is employed to test these hypotheses with data collected from 406 listed new ventures on growth enterprises market (GEM) in China between 2012 and 2014. The results show that average education level, social capital, oversea background and pay gap of TMT have a positive influence on NVP respectively, and average age and professional background heterogeneity of TMT have a negative influence on NVP. Furthermore, pay gap plays moderating effect in the impacts of average education level and professional background heterogeneity of TMT respectively on NVP. This paper makes a theoretical analysis and empirical research on the impact of TMT characteristics and pay gap on NVP. At the same time, it discusses the moderating effect of pay gap in the influence of TMT characteristics on NVP, and obtains the following 6 conclusions.Firstly, the average age of TMT members has a negative impact on NVP, that is, the greater the average age of TMT is, the less conducive it is to improving NVP. Most companies listed on the GEM are characterized by high growth and innovation. Although older TMT members have richer management experience and higher ability to cope with market risks, they are relatively conservative in making strategic decisions. Therefore, the innovative and adventurous young TMT is more conducive to the growth of start-ups.Secondly, the average education level of TMT has a positive impact on NVP, which shows companies on China’s GEM have higher academic requirements for TMT. Managers with higher academic qualifications tend to have a relatively stronger learning ability and can adapt to the ever-changing market conditions and competitive environment more quickly.Thirdly, the professional background heterogeneity of TMT has a negative impact on NVP. That is to say, the smaller the professional background heterogeneity of TMT is, the better performance TMT can obtain. Since most GEM-listed companies are engaged in high-tech industries, and with the fast speed of technical progress, new technologies such as new energy, artificial intelligence, 3D printing put forward higher requirements for the professional background of TMT member. The same or similar professional backgrounds of TMT members are more beneficial to mutual communication and can push forward the rapid growth of the company.Fourthly, TMT’s social capital has a positive impact on NVP. Under the fierce competitive market environment, TMTs with rich social capital can obtain national and regional policy information and key resources in advance, so that the company’s strategy and tactics can be dynamically and timely adjusted.Fifthly, the oversea background of TMT has a positive impact on NVP. Foreign TMT members or those with oversea work experience can bring advanced foreign technology and management experience to the company, which helps TMT to think about issues from different economic and cultural backgrounds, thus enhancing the company’s international vision.Finally, the pay gap plays moderating effect in the impact of TMT characteristics on NVP. Pay gap has weakened the impact of average education level on NVP. The average education level reflects the difference between the education levels of TMT members. If pay gap between TMT members is too large, it will reduce the enthusiasm of those members with lower pay, thus affecting the unity and cooperation among TMT members. Pay gap has weakened the impact of professional background heterogeneity on NVP. Executive’s pay should be matched with individual ability. Different salary standards for TMT members with different professional backgrounds will lead to negative psychological emotions, which will weaken the cohesiveness and execution of the team and reduce the company performance.When setting up TMT, entrepreneurs should try to choose young talents with high education level and low heterogeneity in professional background. Compared with older executives, their young peers are more determined when making strategic decisions, so they are able to quickly grasp market trends. Therefore, efforts should be made to recruit highly educated TMT members, and in the meanwhile to strengthen professional training and to enhance the learning ability for existing executive members. In the initial growth stage of the start-ups, they should vigorously develop the main business. When setting up the TMT, they should consider introducing more members who are proficient in the main business, laying the foundation for the company to quickly obtain market share. Furthermore, venture companies should try to choose talents with rich social capital and oversea background when building up their TMTs, because they can bring a large number of partners to the company, which is conducive to business promotion of the enterprises. Executives with oversea backgrounds may have thoughts that are different from their domestic peers, and can analyze market changes from different angles. At the same time, foreign advanced technology can make enterprises unique in the main business field, thus make enterprises more competitive.This study contributes to developing the theory of TMT’s impact on enterprise performance. Especially, this study has implications for improving NVP by optimizing TMT characteristics. The shortcoming of this study is the selection of the TMT characteristic variables. Only the quantifiable indicators are chosen and some variables that are not easy to quantify such as personality and value orientation of psychological characteristic are not used. In the future research, the psychological characteristics variables should be considered in the regression model so as to analyze the impacts of the TMT characteristics on NVP more systematically and deeply. Related Articles | Metrics

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A research on new energy vehicle industry R&D subsidy under the policy of “double credits” Zheng Jichuan，Zhao Hua，Li Zhiguo 2019, 40(2): 126-133.  Abstract ( 496 )   With the continuous fermentation of the “cheat up” incident in the new energy automobile industry, the relevant departments decided to completely stop the subsidies for promotion and application of new energy vehicles in 2020, and the “Parallel Management Measures for the Average Fuel Consumption of Passenger Vehicle Enterprises and New Energy Vehicle Points” (hereinafter, the “double integral policy”) will continue to lead the development of the industry. However, the industry still has doubts about the double integral policy: Can the “improvisation” policy promote the market-oriented operation of China’s new energy auto industry which is highly dependent on the policy with the opening market, and whether the “mileage is king” assessment mechanism can continuously drive independent R&D in the field of new energy automobile in China to enhance product competitiveness? Today, upon the coming of foreign brands, lack of key technologies caused by lack of independent R&D are subject to the disadvantages of China’s new energy automobile industry. Therefore, how will the double integral policy affect the R&D investment of new energy auto companies? Second, what kind of policy should the government combine with the double integral policy to encourage independent R&D? Finally, what is the effectiveness of the R&D investment stimulus policy under the double integral policy? How could it be implemented? Answering these questions is critical to ensuring the healthy growth of the new energy automobile industry. With the gradual development of intelligence, networking and sharing, the new energy automobile industry will profoundly change our lives, and vigorously drive technological changes and economic development. Major countries have successively introduced policies to support new energy automobile industry. Looking back at the literature, the research on new energy automobile industry focuses on exploring the shortcomings of existing policies to formulate more effective industrial policies. The exposure of the new energy automobile industry’s “cheat up” incident has led the mainstream view that government failure is the main reason for the deviation of new energy automobile industry policy. Although the double integral policy will dominate the industry development with market mechanisms, the promotion of policies to corporate R&D is not yet known.Under this circumstance, with the combination of R&D subsidy and double integral policy for the new energy automobile industry, it is meaningful to improve the free operation of the market mechanism while improving the new energy automobile industry policy system dominated by the double integral policy. Although relevant research also proposes that China should increase the policy supply for the basic research and development of new energy automobile industry, increase funding, encourage independent R&D, technological innovation, to enhance industrial competitiveness, occupy new technology routes, but only propose suggestions about R&D subsidy. There are no subsidized methods and paths. China has a R&D policy supply for the new energy automobile industry since the "863" and "973" programs, but there are two main problems: First, the scale is small, compared with the subsidies for financial promotion and application, the amount of R&D subsidy is small, secondly the coverage is not comprehensive, the future mainstream technology of new energy automobile is difficult to determine in a short time. It is difficult to cultivate long-term industrial competitive advantages only for research project based on R&D funding for specific technology routes.Based on this, this paper constructs a three-stage game model in which the new energy vehicle supplier manufacturer decides the R&D investment level, the supplier output competition and the manufacturer output competition under the double integral policy with R&D subsidy, explaining the impact of the positive integral price and market scale on R&D investment and the mechanism of R&D subsidy.The research shows that: (1) when the double integral policy is used alone, the R&D investment of new energy auto companies will increase with the increase of the positive integral price and market size before the vertical R&D overflow rate reaches the threshold. In the form of “market access” regulation, the double integral policy requires manufacturers to compensate for negative integral. Increasing R&D investment in new energy automobile business is the first choice of manufacturers. The demand of manufacturers will also drive R&D investment in the whole industry. However, after the technological innovation strength of new energy auto companies has increased and the vertical R&D spillover rate has reached the threshold, enterprises are more inclined to use R&D achievements to obtain more profits. At this stage, enterprises will reduce R&D investment as the positive credit price and market size increase, and turn to market development.(2) R&D subsidy has a stimulating effect on R&D investment of new energy auto companies within the effective range. The improvement of competitiveness is a process from quantitative change to qualitative change, which requires sustained high intensity investment, and the company bears high risks and uncertainties. The government’s R&D subsidy clarify the direction of industrial development and market development expectations, reduce R&D risks, and enhance the enthusiasm and initiative of R&D investment. (3) The government should inspect the development status of the new energy automobile industry in stages, and adjust the amount of R&D subsidy according to the changes in the vertical R&D spillover rate of new energy automobile industry suppliers and manufacturers, so that the policy role remains in the positive effect range. The combination of R&D subsidy and double integral policy with “reverse spillover rate changes” can promote industrial technology innovation and build competitive advantage while improving market mechanisms.The above conclusions bring the following enlightenment: (1) The industrial policy of new energy automobile should have R&D subsidy face to the core basic components (components), advanced basic processes, key basic materials and industrial technology foundation "four basics" engineering, multi-disciplinary and multi-field motors and batteries, as well as process technology, modular technology, system integration technology, innovative design, software development for research and design testing, and R&D of standards, especially international standards, form the core competitiveness of China’s new energy automobile industry. (2) Emerging industrial policies should be re-evaluated according to the stage of industrial development and market performance, focusing on solving the “reverse selection” and “moral hazard” problems arising from information asymmetry in the implementation process, avoiding structural deviations of industrial policies and ensuring the incentive process. Ensure the controllability of the incentive process and improve the resource allocation of emerging industries to the Pareto optimal state. Related Articles | Metrics

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A research on the effect of servitization strategy from the perspective of value creation Liu Linyan 2019, 40(2): 134-143.  Abstract ( 203 )   The trend of industrial service has aroused people’s new interest. Organizations, markets and the whole society begin to pay attention to the exchange of services. The concept of servitization was first put forward by Vandermerwe and Rada, regarded as a process of creating value by adding services to products, i.e. strategic innovation process, in which an organization transfers value to customers by utilizing the capabilities and processes of an enterprise from selling products to integrating products and services. Since the 1990s, a large number of domestic and foreign scholars have begun to study the use, development and impact of the servitization strategy to enhance the competitiveness of enterprises.However, while affirming the strategic values of service, many studies have shown that the adoption of servitization strategy does not necessarily lead to expected high income and desired success, this phenomenon was defined as "paradox of servitization strategy". How can we make the servitization strategy successful? Relevant exploration can be divided into two categories. One is that traditional service transformation of manufacturing enterprises will face three challenges: service design, organizational strategy and organizational change. It can be seen that the focus is still on internal management and coordination. The other is that services are different from products, and new strategic rules in service field should be clearly understood and applied.In fact, these two points are necessary and indispensable, but it seems that they are not enough. The service-dominated market emphasizes value creation, and pays special attention to the role of customers in the process of value creation. It can be seen that the performance of service providers can be reflected not only by the perceived value of customers, but also by the experience participation of customers themselves. Based on the observation from China, we propose that both service providers and customers need to adapt. There is no uniform standard to convince which degree of service and which type of service is the best. From the perspective of synergistic value creation, only the most appropriate. This paper intends to answer these questions, what does this servitization mean to the Chinese firms who are attempting to apply or are going through servitization? If the strategy of servitization works, then what is the difference between before and after the implementation of this strategy, in terms of customer perceived value and the relationship?This study focuses on two types of servitization strategies: product portfolio-based coupling services and information technology-based integration services. Based on the classification of servitization strategies, this paper analyses and empirically tests the impact of two types of servitization strategies on customer perceived value.In order to empirically validate this study’s model, a survey method was used. Before sending out questionnaires, we implemented expert consultation and corrected items of the questionnaire. Simultaneously, we chose some companies to carry on pre-test of the questionnaire, consulted and interviewed the top managers in these firms. Through the steps above, we finally got the items and measurement used in this research, and ultimately obtained 346 valid questionnaires with a recovery rate of 53.2%. We use Chi-square tests to compare the questionnaires with different payback periods, and compare them based on the number of employees, sales revenue, total assets and other variables. The results show that there is no significant difference between them, that is, there is no non-response error.Although previous studies have emphasized operand resources, operant resources, asset specificity , dynamic cooperation, organizational leadership, information systems and other structural factors to explain service value creation, this study focuses on exploring how product portfolio-based coupled services and information technology-based integrated services match customer perceived value, especially relationship value building andcustomer participation management. These aspects of service management are of great significance in explaining and determining the objectives of industrial service, such as the service strategy of synergistic value creation, the strategy of interaction between supply and demand, etc., and are considered as the key points of servitization. Based on the results of statistical tests and our observations from China, the conclusions and theoretical and practical significance are as follows.Firstly, on the basis of previous studies and combined with enterprise research, this paper divides the servitization strategy into product portfolio-based coupling services and information technology-based integration services. Although other scholars divided services into four categories from the perspective of customer use: factor service, semi-production service, instrumental service and consumptive service, it is helpful to understand the interactive process between buyers and sellers. But in actual use, it is difficult to judge which kind of purchasing is. This study suggests that services, especially those that are difficult to code, can be obtained through sustained and close supply-demand cooperation.Secondly, this study emphasizes the importance of servitization strategy to customer perceived value. Although studies have shown that integrated and diversified service procurement is an important part of the servitization strategy, there is very limited evidence about the perceived value of service procurement. Customer purchasing can bring customer perceived economic and technological value, but perceived relationship value can only be obtained by purchasing integrated services based on information technology, and is mediated by perceived economic value and perceived technology/core value. The results show that the service based on professional competence and information is an important resource for inter-organizational rent-seeking. The efficiency of cooperation between suppliers and customers is improved by sharing and process building.Finally, few studies on business services have explored situational factors. This study regards customer participation as a moderating variable. It finds that customer participation plays an important moderating role between information technology-based integrated services and perceived technology/core value, which means that the higher the degree of customer participation is, the more the perceived technology value is when purchasing information technology-based integrated services. However, customer participation has no moderating effect between product portfolio-based coupled services and customer perceived technology/core values.Customers should pay attention to the global experience when purchasing services. Choosing which services to purchase is only the beginning. Customers also need to know the capabilities of suppliers, match the operational needs of enterprises, and develop services in collaboration. Related Articles | Metrics

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Organizational learning and firm’s forecasting ability based on the perspective of organizational attention Wei Wu, Zhao He, Xiao Deyun 2019, 40(2): 144-153.  Abstract ( 233 )   In a highly uncertain and turbulent environment, corporate strategic decision-making is largely dependent on its forecasting ability. Whether an enterprise can predict the environment in advance, the learning ability must be considered seriously. However, not all the information of environmental stimulus can be clearly conveyed to the organization. Therefore, corporations need to spend a lot of time and energy to scan the organizational environment to perceive the stimulus of opportunities or threats, complete the noticing, encoding, interpreting and focusing, and generate organizational attention ultimately. Based on the analysis of the construct of organizational attention, this study first explores the influence of organizational learning on firm’s forecasting ability and organizational attention, then explores the mediating role of organizational attention between organizational learning and firm’s forecasting ability, and finally explores the moderate effect of illusion of control and overconfidence.To test hypotheses, we selected 284 managers from 500 corporations in Beijing, Shanghai, Guangzhou, Shenzhen, Wuhan and Shiyan. In order to improve the quality and validity of data collection, we have invested a lot of time and energy in the design of questionnaires. Firstly, we carried out a lot of literature research. Secondly, we conducted in-depth interviews. Thirdly, we sought advice from scholars. Finally, we conducted a small range of test and then an overall questionnaire was issued. The whole data collection took us half a year. We used factor analysis, structural equation model and moderated effect model to test hypotheses. The empirical results showed that: (1) Organizational attention consists of four dimensions: noticing, encoding, interpreting and focusing. (2) Organizational learning is positively related to firm’s forecasting ability. (3) Organizational learning is positively related to organizational attention. (4) Organizational learning has an indirect effect on firm’s forecasting ability via organizational attention. (5) Overconfidence moderates the relationship between organizational attention and firm’s forecasting ability negatively, however the moderate effect of illusion of control is not significant.The present research makes several contributions to organizational attention literature and practice. In terms of theoretical contributions, this research proves that the division of four dimensions of organizational attention is operable and it is pointed out that learning orientation cannot directly promote the improvement of firm’s forecasting ability and it must be achieved by organizational attention. It lays a theoretical foundation for future research on organizational attention. In terms of the practical implications, this research suggests that in organizational learning, corporations must realize that shaping organizational attention is the key to the efficient application of organizational learning. They also should avoid illusion of control and overconfidence, and improve the accuracy of environmental forecasting through rational thinking. Related Articles | Metrics

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CEO’s academic experience and firm innovation Zhang Xiaoliang, Yang Hailong, Tang Xiaofei 2019, 40(2): 154-163.  Abstract ( 475 )   In the great wave of China’s reform and opening-up, a large number of college faculty and researchers in scientific research institutions left their in-system occupations and devoted themselves to the commercial tide, a phenomenon well known as “wenren xiahai” (Dickson，2007; Zhou et al., 2017). It is a unique phenomenon in the development of China’s economic reform that has rarely occurred in western countries such as the United States and the United Kingdom. It should be noted that in recent years, increasing amount of researchers with academic experience have entered the management of listed firms and even held top level positions like Chief executive officer. According to statistics in our sample, CEOs with academic experience account for 13.5% on average during the sample period, and the percentage shows a steady growth trend year by year, from 9.1% in 2007 to 13.6% in 2010, then up to around 15% since 2011. As the number of scholar-type CEOs is growing rapidly in top management teams, what roles do they play in the firms’ innovation decision-making? Does CEO’s academic experience hinder or enhance innovation? What is the mechanism? These questions remain unexplored in the previous literature.Theoretically, the effect of CEO’s academic experience on firm innovation is uncertain. On one hand, CEO’s academic experience may impede firm innovation. Due to prolonged academic training, CEOs with academic experience tend to be more rigorous and risk-averse in their decision-making, and are relatively more focused on independent thinking (Jiang and Murphy, 2007). As innovative activities involve a high probability of failure and the innovation process is unpredictable and idiosyncratic with many contingencies that are impossible to foresee, the listed firms headed by CEOs with academic experience may have lower innovation outputs. On the other hand, the essence of academic research is exploration and innovation (Beveridge, 2017). Long-term academic edification may endow academic CEOs with inherent creative spirit and innovative willingness, thus enhance firm innovation. Therefore, the relationship between CEO’s academic experience and firm innovation is an empirical question to be tested.Based on statistics on Shanghai Exchange and Shenzhen Exchange listed firms in China between 2007 and 2014，this paper examines the effect of CEO’s academic experience on firm innovation and discusses the underlying mechanisms. Using a firm fixed-effect regression model, we document a positive relation between CEO’s academic experience and innovation output (measured by invention patents in two years ahead). More specifically, we find that CEO’s academic experience increases firm innovation by about 10%. Although evidence stated above supports our hypothesis, an important concern is that the relation between CEO’s academic experience and firm innovation could be endogenously determined. To establish causality, we employ two identification tests, including Heckman two-stage regressions and propensity score matching (PSM) approach to address endogeneity concerns. Besides, we conduct several robustness tests and our results hold. Moreover, we find that the positive association between CEO’s academic experience and firm innovation is more pronounced when the CEO is more powerful or promoted within the firm. We further investigate the underlying mechanisms and find that firms with overseas or high-level academic experience CEOs are more innovative; meanwhile firms with academic experience CEOs are more likely to implement industry-university-research cooperation strategy to promote firm innovation. Overall, the evidence is consistent with our “creative spirit shaping hypothesis”. In addition, we find that the promotion effect of CEO’s academic experience on firm innovation mainly comes from natural science research experience, while political connection weakens the positive association between CEO’s academic experience and firm innovation.This paper contributes to the existing literature in several ways. First, we contribute to the stream of research that examines the motivations and determinants of firm innovation. The large proportion of CEOs with academic experience in top management teams is an important and unique phenomenon which originates from “wenren xiahai” wave during China’s reform and opening-up. To the best of our knowledge, this paper is the first in the literature to provide causal evidence that CEO’s academic experience affects firm innovation. We provide supportive evidence that CEO’s academic experience enhances firm innovation and shed light on the creative spirit shaping function of academic experience. Second, our study extends prior research that examines the effect of managerial attributes on firm decision-making. Prior literature focus primarily on the links between managerial heterogeneity, including managers’ age, gender, education background, personality characteristics, financial experience, industry expertise experience, poverty experience, military experience, politics experience and firm behaviors. But less is known about the economic consequences of CEO’s academic experience. Unlike previous studies, we provide new evidence on how CEO’s academic experience affects listed firms’ high-risk innovation activities and explore the underlying mechanisms in the context of scholar-type CEOs phenomenon in top management teams. This study not only contributes to literature on firm innovation and Upper Echelons Theory, but also has significant implications for listed firms to make better CEO appointment decisions to enhance firm innovation. Prior studies pointed out that innovation activities involve the exploration of new untested approaches that are likely to fail, so standard pay-for-performance schemes that punish failures with low rewards and termination may in fact have adverse effects on innovation (Ederer and Manso, 2013). This study goes further and shows that the CEO’s inherent creative spirit and innovative willingness are more efficient in the process of innovation decision-making. Therefore, it is more important for listed firms to explore and cultivate the CEO’s inherent creative spirit and innovative willingness than depending on inefficient external incentives, so as to improve listed firms’ innovation outputs and core competitiveness. Related Articles | Metrics

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Enterprise life cycle and adaptive growth of innovation balance from the perspective of Complex Adaptive System (CAS) Jiang Shuyang, Zhuang Yaming 2019, 40(2): 164-174.  Abstract ( 261 )   With the penetration of industry boundaries becoming stronger, cross-border competition is intensifying. Enterprises need to adjust their innovation strategies at any time to maintain their growth. The deep reason why enterprises are difficult to adapt to the environment is not lack of innovation capability, but lack of adaptability. Usually, enterprises can change the output process of innovation by adjusting the innovation modes, so that they can continue to adapt to the environment. Compared with relying solely on exploitative or exploration to achieve change, enterprises that can balance the relationship between the two modes are more likely to adapt to the environment. Therefore the problem about how to balance innovation modes has been pending. As a new paradigm, ambidexterity refers to the ability of organizations to conduct heterogeneous and even contradictory behaviors simultaneously. As far as innovation is concerned, these contradictory abilities are usually summarized as exploitative innovation and exploratory innovation. Currently, there are two main viewpoints on how to solve the balance problem of innovative direction behavior, one ispunctuated equilibrium model, the other is ambidexterity model. Punctuated equilibrium theory argues that the limited resources and capabilities of enterprises will cause the conflicts between exploratory innovation and exploitative innovation. It is easier for enterprises to make breakthroughs in innovation by flexible switching innovative direction. Ambidexterity theory argues that enterprises need to pay attention to both exploratory innovation and exploitative innovation in order to achieve sustainable growth. In recent years, some scholars have begun to explore the appropriateness and validity of ambidexterity behavior in different situations, and generally believe that punctuated equilibrium and ambidexterity are completely different mechanisms. But to a certain extent, they neglect the time attributes of the growth of enterprise capacity, and they cannot solve the contradiction faced by the implementation of the two types of strategies at the same time. In fact, the balance of innovation is not set up in the beginning, and there is not enough evidence to prove that its development follows a linear path. On the contrary, it may be an experience-driven growth path. With the introduction of complex adaptive system (CAS) into organizational theory, enterprises, as adaptive subjects, can constantly enhance their ability to predict behavior outcomes during the growth process of their life stages, and they can rearrange and combine internal resources to improve their innovation competitiveness.On the one hand, this paper intends to carry out research on the following path. Firstly, the innovation output of the two balanced modes is inspected from the two indicators of innovation efficiency and innovation effect, and the limitations of the two balanced modes are explained from more dimensions. Secondly,by combining with the life cycle of enterprises, through the analysis of innovation efficiency and innovation effect, this paper clarifies the phase characteristics and logic of innovation in different periods. Finally, according to the above results, from the perspective of complex adaptive system, this study explores the adaptive law and evolution stage of innovation balance. On the other hand, this paper adopts the following methods. Based on the data of listed 2914 companies in manufacturing industry from 2007 to 2015, this paper empirically analyses the innovation efficiency and effect of enterprises at different stages by unbalanced panel regression. Besides, combined with the theory of complex adaptive system (CAS), an ambidexterity growth framework is built. The results show that the punctuated equilibrium is helpful to improve the efficiency of innovation, but ambidexterity improves innovation effect. Combining enterprise life cycle theory, the enterprises of growing period have better innovation efficiency but worse effect, but the innovation of mature enterprises has higher effect and lower efficiency. Accidently, the recession enterprises’ innovation effect and efficiency get good performance. Finally, based on complex adaptive system (CAS), this paper analyzes different stages of innovation with ambidexterity balance. There are three stages among the evolution of the ambidexterity balance. The level of adaptability depends on the matching and cohesion of the direction of innovation activities and the efficiency of implementation. The efficiency of innovation is high and the effect is poor, which means that the system corresponds to the "orderly" state, and will be destroyed when it is impacted. On the contrary, it also means that the system is in a "chaotic" state. The good effect of innovation output while maintaining high efficiency represents that the system is in the "chaotic edge" state, that is, innovation balance can quickly adapt to the complex and changeable business environment. The choices of innovation balance depend on experience to drive spiral upward along such a path.It provides some references for enterprises to balance the ambidexterity innovative behavior. (i) When enterprises balance the two kinds of strategies of innovation, they should pay attention to the self-ability which is constantly changing with the change of enterprise resource and accumulation of knowledge. Instead of mechanically balancing the relationship between the two innovation strategies, enterprises should combine their own capabilities with the internal and external environment from a dynamic perspective, learn quickly and respond to changes in timely. (ii) The changing market demand will bring about a new round of innovation and discovery. Enterprises can get rid of the old cycle and meet the new life cycle when innovation is more effective. Growing-up enterprises should not only be satisfied with acquisition of operating skills or processes of new technologies, but more importantly, they should constantly strengthen their awareness of learning and enthusiasm for innovation to lead the improvement of technological capabilities. Mature enterprises should face up to their lack of knowledge, and strengthen communication, integration and cooperation between the two types of innovations. Enterprises in recession should properly increase innovation investment to drive themselves into a new cycle because of their more effective innovation. (iii) With the improvement of balance ability, more complex organizational structure is needed to cope with short-term synergy and long-term adaptability. For solving conflicts in the process of innovation, enterprises must constantly improve their culture, organizational structure and leadership style, so as to coordinate the dynamic ability of innovation balance. Related Articles | Metrics

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Review of the modern industrial system based on the knowledge map Li Qiaoxing, Xu Sihui 2019, 40(2): 175-185.  Abstract ( 346 )   The report of the Nineteenth National Congress of the Communist Party of China has put forward the strategy idea that names implementing new development concept and building a modern economic system. The report has also called for people to put forth our effort to greatly accelerate the construction of an industrial system with coordinated development among the real economy, innovation on science and technology, modern finance and human resources. Because the industrial system in China is deeply influenced by modern science and technology such as Internet, cloud computing, big data and artificial intelligence, as well as by the social problems such as food safety and environmental pollution, to build a modern industrial system may be advantageous to fully realize the modern economic system. It is obvious that the modern industrial system is an important content and the basic aspect of the modern economic system in China, and the core industries may shoulder the important mission to realize China’s development strategy in the near future. Then the research on modern industrial system may play an important role on both the industrial theory and the real application. In order to deeply understand the development status on researching modern industrial system in China, we selected the relevant literature from 2007 to 2017 as the analyzed object that has been published by the CSSCI source journals and the Chinese core journals in the database of China National Knowledge Internet (CNKI), but there are non-research literature among them, such as news reports, book reviews and so on. Finally, we got 340 domestic documents in the database of CNKI. Because the quantitative research can be more objectively to reflect the research hotspots and the research status in a certain field, we utilized the CiteSpace software, which is simple and powerful, to draw the knowledge maps, and then we conducted the visual and quantitative analysis on those full literature samples. The knowledge maps were drawn from the perspectives of time distribution, core authors, research institutes, journal distribution, subject types and highly cited papers. Then the maps were utilized to analyze the literature, and the current research topics were to be grasped and the research trends were also to be judged, which may provide a useful reference for the in-depth study of modern industrial system. The main research conclusions in this paper are as follows: (1) The research overview on the modern industrial system: By analyzing the knowledge maps of the time distribution of papers, the core authors and research institutions, the journal types and subject composition, as well as the highly cited papers, we concluded that the study of modern industrial system was started in 2007, which was late but developed rapidly, and the scholars have achieved more valuable research results. Especially after the Nineteenth National Congress of the Communist Party of China, the academic has turned its attention back to the research track of the modern industrial system development. However, although many scientific research institutes and researchers have participated to research the modern industrial system, there was a clear lack on cooperation and communication between the scholars and/or the institutions, and the research force in this field was relatively decentralized. Furthermore, there were only a few highly cited papers, and the journals that published these papers were only concentrated in the field of industrial economics, which were obvious to be lack on the cross-disciplinary research among management, sociology and other disciplines. Then the government, universities and scientific research institutions should strengthen their exchanges and cooperation in order to achieve more breakthroughs in this field, and also should contribute to rationally construct a modern economic system. (2) The research topics on the modern industrial system: On the basis of the knowledge map of the co-occurrence keywords, we got the four research topics on the modern industrial system, which are the connotation and characteristics, the formation mechanism, the system construction and the realization path. The construction of modern industrial system as well as the realization path of the modern agricultural system and the advanced manufacturing system was the current research hotspots. Then the scholars may continue to deepen the construction of modern industrial system and explore the initial model of reasonable construction of modern industrial system, and we also should continue to strengthen the research on optimization model of the modern industrial system and the path of transformation and upgrading of those core industries among the system; (3) The research trends on the modern industrial system: According to the knowledge map of the emergent words, we obtained that there were two stages of the domestic research trend of the modern industrial system. That is to say, the primary stage was characterized by studying the important role of the modern industrial system in the process of the economic growth, and the later stage was characterized by exploring the two important issues, which are how to realize the transformation and upgrading of the modern industries and how to drive the new urbanization strategy by relying on a reasonable modern industrial system under the situation of new normal economy. According to the three research results above, we suggested that the research institutions and the authors should strengthen their cooperation and deepen the theoretical achievements on the various research topics in order to push the continuous progress for the construction of the China’s modern economic system, and the suggestions and countermeasures may be helpful for the management and decision-making of the governments and the businesses, so it can provide a thinking support to realize the development objectives of Chinese strategies. Related Articles | Metrics

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A research on imposing environment tax policy of remannfactured products Wang Zhe, Li Bangyi, Wang Yue 2019, 40(2): 186-198.  Abstract ( 242 )   Although remanufactured products reduce demands on energy and materials, they can still bring some environmental problems. Meanwhile, recent research has proved that remanufacturing is not a one-size-fit-all approach and may also lead to bad results, either economically or environmentally. Therefore, whether remanufactured products should be taxed has attracted people’s attention. So far, there is no literature which clarifies the impact mechanism of incorporating the tax on remanufactured products. To solve this problem, we construct a two-stage Stackelberg game model including government and manufacturer. In the context of a game model, we consider two different cases, namely the case with tax on remanufactured products and the case without tax on remanufactured products. We set the case without tax on remanufactured products as a benchmark and compare the two different cases in order to better analyze the impact of incorporating remanufactured products tax on production decision, environment, economy and social welfare. According to reverse induction, we first use Karush-Kuhn-Tucker conditions to solve the manufacturer’s profit function and determine the optimal quantities of new and remanufactured products. Then, we solve the regulator’s welfare function and determine the tax price. We analyze the effects of incorporating remanufactured products through the comparison of two cases and list the main results as follows.From the perspective of effective tax price region, incorporating the tax on remanufactured products expands the adjustable tax region under inactive constraint condition and shrinks the adjustable tax region under active constraint. In the whole, incorporating the tax on remanufactured products causes the shrink of the whole adjustable tax region.From the perspective of production decision, when the tax price is low, incorporating tax onremanufactured product weakens the cannibalization effect of remanufactured product on new products, thereby increasing the demand for new products. It has a positive impact on the manufacturer’s production activities. When the tax price is high, incorporating tax on remanufactured product decreases the demands for new and remanufactured products, while the change of new products is higher than that of remanufactured products as a result of decreasing in available cores. It has a negative effect on the manufacturer’s production activities and inhibits manufacturers’ production of new and remanufactured products.From the perspective of economic profit, incorporating tax onremanufactured product leads to a worse economic performance. Note that profit difference between two cases is continuous and strictly concave and the change of profit difference between two cases is affected by the tax price.From the perspective of environmental performance, incorporating tax onremanufactured product does not necessarily lead to a better environmental impact. When the tax pricing is high enough, incorporating tax on remanufactured product must lead to a better environmental impact. It is because that high tax price curbs the manufacturer’s production activity. When the tax pricing is low or moderate, the change of environmental impact after incorporating tax on remanufactured product is related to environmental impact of remanufactured products and the environmental awareness of consumers. When the environmental awareness of consumers is higher than environmental impact of remanufactured products, incorporating the tax on remanufactured products inversely lead to a worse environmental impact. Note that under this condition, incorporating tax on remanufactured product brings a "lose-lose" situation where the economic and environmental performances of the manufacturer are simultaneously damaged. This warns regulators that there is no need to impose the tax on remanufactured products when the environmental awareness of consumers is strong enough. On the contrary, if consumers consider remanufactured products are not environment-friendly, incorporating the tax on remanufactured products leads to better environmental impact. At the moment, it results in a "lose-win" situation where economic profit gets worse, but environmental impact gets better. In order to better understand the effect of tax policy implementation, the regulator should use social welfare-maximization as a criterion to determine whether or not to incorporate tax onremanufactured products. From the perspective of social welfare, welfare function integrates consumer surplus, manufacturer’s profit, government revenue and environmental externalities. We examine the nature of the welfare function to investigate the impacts of tax price on the balance among economy, environment and social welfare. The welfare function is continuous and strictly concave in the tax price. The cases RN and Rboth exist the unique maximum tax price tRN* and tR*with the goal of welfare-maximization, respectively. According to different environmental cost values of the product, the regulator imposes the optimal tax price and chooses the optimal tax policy, thereby determining whether incorporating tax on remanufactured product or not. When the environmental cost of a product is over-low, there is no need to impose the environmental tax under two cases. On the contrary, if the environmental cost of the product is over-high, the regulator should impose the strictest tax price and eliminate the product from the market. It is noted that incorporating the tax on remanufactured products results in raising the initial threshold of taxable environmental cost. Thus, taxing only on new product is stricter than that on both new and remanufactured products, and the product of the manufacturer is more likely to trigger the former.There are also some interesting conclusions through analyzing the impact of the tax on social welfare by numerical examples: When the environmental cost of products is moderate under certain conditions, if consumers considerremanufactured product is not environment-friendly enough, there is a situation in which only imposing the tax on new products leads to better social welfare. However, if consumers consider remanufactured product is environment-friendly enough, there exists a situation where the legislative efficiency of two policies is same. This demonstrates that imposing the tax on remanufactured products shares the tax burden of new products. When the environmental cost of products is high under certain conditions, the social welfare of incorporating the tax on remanufactured products is relatively better. The regulator should choose to impose the tax on remanufactured products. Related Articles | Metrics

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Impact of corporate social responsibility on financial performance by taking the transportation industry as an example Luo Jiaqi, Kuang Haibo, Shen Siyi 2019, 40(2): 199-208.  Abstract ( 386 )   Based on the impact of corporate social responsibility fulfillment on corporate financial performance in the transportation industry, this paper uses the stakeholder theory to divide the multi-dimensional social responsibility indicators to enrich further the research literature on the economic consequences of corporate social responsibility and to provide theoretical support and empirical evidence that enterprises should actively fulfill corporate social responsibility from the perspective of enterprise value. The purpose of this research is to conduct an empirical study on the relationship between corporate social responsibility and financial performance in the current and lag periods, and to consider the lag effect of industry specificity and social responsibility in the transportation industry at the same time. This paper intends to determine that there is a significant positive correlation between current corporate social responsibility and current financial performance. This paper proposes：H1: Corporate current social responsibility (CSR) is positively correlated with current financial performance (CFP); and H2: Corporate current social responsibility (CSR) is positively correlated with late financial performance (CFP). Considering the difference in the degree of financial performance of financial performance measured by accounting indicators and market indicators, the relationship between the two indicators is discussed. Furthermore, the lagging effect of social responsibility information affects the development of financial performance in different periods. It is also necessary to make assumptions about research in light of changes in time. This paper proposes：H3a: Corporate current social responsibility (CSR) is positively correlated with financial performance as measured by current accounting indicators (AI). H3b: Corporate current social responsibility (CSR) is positively correlated with financial performance as measured by current market indicators (MI). H4a: Corporate current social responsibility (CSR) is positively correlated with financial performance measured by later accounting indicators (AI). H4b: Corporate current social responsibility (CSR) is positively correlated with financial performance as measured by late market indicators (MI). The three hypotheses of H1, H3a and H3b involve regression analysis of static panel data, so panel data is established and regression analysis of state panel data model is performed. The three hypotheses of H2, H4a and H4b are all regression analysis of dynamic panel data, so the dynamic panel data model regression analysis---distribution lag model is established. The results show that both fulfillment of corporate social responsibility and growth in the transportation industry have obvious positive effects on current financial performance indicators, while the size of the company has a significant negative impact on current financial performance. The financial performance will be affected by both the lagged one and lagging corporate social responsibility at the same time, and the longer the social responsibility will be, the weaker the social responsibility will affect the latter part of financial performance. For both current and future financial performance indicators, corporate social responsibility has a more significant positive effect on the financial performance measured by the accounting indicators than the market indicators. Related Articles | Metrics