Research On The Impact Mechanism Of Government Subsidies On The Performance Of New Ventures: The Role Of Organizational Legitimacy And Entrepreneurial Orientation

The initiative of mass entrepreneurship and innovation is exerting a notably positive impact on the entrepreneurship passion of social actors and the formation of new ventures.In order to improve the survival rate of new ventures and promote their rapid development,the government has promulgated a series of financial policies.Then,can government subsidy policies promote the development of new ventures?Do different types of government subsidies have different effects on new ventures?Does government subsidy play the same role for all new ventures?Solving these issues has important practical significance for improving the government subsidy policy of new ventures and improving the implementation effect of financial funds.Scholars have carried out a series of explorations on the role of government subsidies in improving the performance of new ventures.Research basing on the resource perspective pointed out government subsidies can bring direct capital inflow to new ventures,thereby increasing investment in R&D,innovation,market expansion and talent introduction,and thus enhancing enterprise performance.The institutional perspective shows that the promotion effect of government subsidies on the performance of new ventures may be due to the legitimacy enhancement effect brought by authority certification.Unfortunately,although the empirical research on resource perspective has been very rich,the empirical research on institutional perspective is still very limited.We are lack of understanding about whether all kinds of government subsidies have both resource-input effect and legitimacy-enhance effect,and few research intergrated resource and institutional perspective to examine the difference of these two influence paths.In addition,research on contingency factor of government subsidies affecting the performance of new ventures is still limited to the demographic characteristics of enterprises,lack of in-depth analysis of other deep-seated factors,such as corporate strategic postures.In order to solve these problems,this paper designed three layers of progressive research,using hierarchical regression method and Bootstrap method to analyze the data of 237 new ventures from 11 cities in Zhejiang province.In sub study 1,this article bases on a integrated perspective of resources and institutional perspective,propose that there may exist two paths which government subsidies affect new venture performance:the direct path based on esource-input effect and the indirect path based on legitimacy-enhance effect,distinguishes the difference of selective and non selective government subsidies,trys to clarify the path difference which different types of government subsidies influence new venture performance.In sub study 2,this article analyzes the difference of selective and non selective government subsidies'effect on new venture performance(T0 and T1),explores whether their effect on new venture performance is sustainable and figures out the intrinsic mechanism behind this phenomenon.In sub study 3,this article examines the interaction effect of two kinds of signals——entrepreneurial orientation and government subsidies——on new venture legitimacy,and examines the moderating effects of entrepreneurial orientation on the "selective government subsidies——organizational legitimacy——new venture performance" medium influence path,by constructing a moderated mediation model.This study have three conclusions:(1)government subsidy have positive influence on new venture performance,this positive effect can be realized by two paths,the direct path by resource supply,and the indirect path by organizational legitimacy improve;(2)the difference of these two paths is the sustainability of the effect,organization legitimacy has a partial mediating effect between government subsidy and new venture performance(time 0),which turn to a fully mediating effect in time 1;(3)entrepreneurial orientation has a moderating effect on the direct relationship of government subsidy and organizational legitimacy,as well as in the indirect relationship of government subsidy and new venture performance(time 0 and time 1),but not in the direct relationship of government subsidy and new venture performance(time0).This article may have theoretical contributions.(1)this article enriches the empirical research about government subsidies to new ventures and organization legitimacy,develop and improve organization legitimacy measurements based on the evaluation of stakeholders;(2)by intergrating scholarly literature based on resource and institutional perspective,this article proposes two influence path——the direct path based on esource-input effect and the indirect path based on legitimacy-enhance effect through which government subsidies influence new venture performance,this reveals the intrinsic mechanism of government subsidies,effect on new venture performance;(3)this article proposes a contingency model basing on time about the relationship between selective&non selective government subsidies and new venture performance,as well as proposes a contingency model basing on entrepreneurial orientation about the relationship between selective government subsidies,organizational legitimacy and new venture performance,by clarifying these two contextual factors,this article extends the existing research on the boundary of government subsidies.The conclusion might be useful for policy makers and entrepreneurs to understand the complex and contingent relationship of government subsidy and new venture performance,and adds important sights for making effective government subsidy policies and optimizing the effect of government subsidy targeting to new ventures.This article also gives some suggestion to new ventures on whether they should apply for government subsidy and how to turn the government subsidy into performance.