| In today's global context,competition between countries has become more and more intense,and the nature of the competition is primarily shown as the pursuing of high technologies.With the increased national power,China has joined the competition inevitably in the international arena,and has been encountering greater pressure and challenge.Meanwhile,the high technologies are also the crucial driver for domestic economic growth and the rapid development of society.Based on such a context,the C hinese government proposed an innovation-driven development strategy and an initiative of mass entrepreneurship and innovation,so as to enhance the innovative level and strengthen the competitiveness of technological industries.As a critical force for promoting technology transfe r and high-tech firms' growth,technology entrepreneurship is the key factor in implementing the strategy and initiative.However,due to the transition economy of C hina,the local governments of China tend to interfere with the economy through administrat ive means based on their local interests,leading to the situation of market segmentation.The demands from the local area may not in accordance with the demands from the whole country,which will cause the vertical institutional complexity,servicing as t he barrier of technology entrepreneurship activities.Based on the institutional complexity perspective,this study examines the effects of market segmentation on technology entrepreneurship using a sample of provincial panel data in C hina from 2002 to 2018.In doing so,we propose specific suggestions for the development of technology entrepreneurship and high-tech industries.The conclusion of this study indicates that first,commodity market segmentation has a significantly negative effect on technology entrepreneurship.The higher the commodity market segmentation,the more likely the high-tech firms' product market will be limited.As a result,the firms that invested in R&D activities cannot get compensation from the product market,leading to a reduced likelihood of survival and growth.The examination on the mediating effect shows that the commodity market segmentation impedes the spillover of ideas and knowledge between areas,which restrains the knowledge spillover entrepreneurship.On the other hand,the negative effect of commodity market segmentation on technology entrepreneurship is strengthened in the east and middle area of C hina,however,such an effect is weakened by the entrepreneurship.Second,capital market segmentation negatively affects the technology entrepreneurship.With a higher level of capital market segmentation,the local government will have more power to interfere with the allocation of capital and resources,which may result in greater resource misallocation and more rent-seeking activities,hindering the progress of innovation and technology entrepreneurship.Further examination on the mediating effect indicates that capital market segmentation blocks the transfer of technology and knowledge through investment activities,deterring the exploitation of technology entrepreneurial opportunities.Besides,the negative effect of capital market segmentation on technology entrepreneurship is not supported in different economic areas of China,but such an effect is weakened by the entrepreneurship level.Third,labor market segmentation negatively affects the technology entrepreneurship.Such a segmentation can hider the mobility of the workforce,bringing about insufficient human capital for areas to identify and exploit technology entrepreneurial opportunities.The mediating effect examination suggests that labor market segmentation impedes the knowledge spillover between areas through the mobility of employees,which ultimately decreases the level of technology entrepreneurship activities.Meanwhile,the negative effect of labor market segmentation on technology entrepreneurship is significant in the west area of China.On the other hand,regarding the effect on technology entrepreneurship,there is a significant positive moderating effect of entrepreneurship.There are three main contributions in our study.First,we investigate how the conflicts between different levels of an institutional logic can affect organizations,which gives a new perspective for the institutional complexity research.Second,we take a first step in framing market segmentation and technology entrepreneurship with institution theories.We explore the mechanism regarding how market segmentation can affect technology entrepreneurship,offering fresh insights to t he technology entrepreneurship research in the context of C hina.Third,by elaborating the mediating mechanism of knowledge spillover and the moderating mechanism of economic area and entrepreneurship,we propose specific suggestions for the policymakers o f central and local governments,contributing to the implementation of strategies that are made for facilitating technology entrepreneurship. |
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