Research On The Mechanism And Effect Of Board Capital On The Innovation-Driven High-Quality Development Of Enterprises

The international environment is in turmoil as a series of issues such as ecological degradation,global epidemic outbreak,Sino-US trade friction,and Russia-Ukraine military conflict continue to emerge.Economic problems and political conflicts are emerging,and social development is facing new challenges.As early as at the 19th National Congress of the Communist Party of China,General Secretary Xi Jinping pointed out that China’s economic development should be transformed from a stage of high speed growth to a stage of high quality development.The implementation of high-quality socio-economic development into micro-objects requires the quality of enterprise development to be improved(Shi,Bentan and Tang,2019).High-quality development requires enterprises to transform from crude development to quality-efficient sustainable development and shape a more competitive paradigm of high-quality development(Huang,S.Jian et al.,2018).Technological progress is the fundamental path to achieve high-quality enterprise development,and technological innovation is the key to achieve technological progress.How to improve the technological innovation level of Chinese enterprises and promote innovation-driven high-quality development of enterprises is an important issue that needs to be addressed and studied in depth.The existing research on high-quality development mainly focuses on the national and regional levels,and a few studies at the enterprise level mainly focus on the measurement,driving mechanism and realization path of high-quality development.The role of innovation strategy as an important driver of high-quality development remains to be explored.The board of directors,as an important subject of strategic decision making,its internal institutional arrangement and resource allocation will have an impact on strategic decision results.The formal and informal systems of the board of directors can have an important impact on the enterprise and interfere with its strategy making(Lidong Wu et al.,2016;Yongzhen Xie et al.,2017).Based on resource dependence theory,the survival and development of a firm depends on the effective integration and synergy of internal resources,and the right match of internal resources can help a firm reduce its dependence on the external environment(Haynes and Hillman,2010)and help a firm reduce transaction costs and manage uncertainty effectively(Zhang,Y.A.and Hu,P.,2009).The board of directors is a provider of resources to the firm,and the human and social capital of the board members have an important impact on the firm(Pfeffer and Salaneik,1978).As the center of corporate governance decisions,the board of directors’ informal system has an important impact on the development of corporate innovation strategies and performance outputs,and board capital is an important element of the informal system.Based on this,this paper establishes a research framework of "board capital-innovation strategy-high-quality corporate development" and tries to explore the influence of board capital on innovation strategy and high-quality corporate development,as well as the mediating role of innovation strategy between the two.To open the black box that board capital influences innovation-driven enterprise quality development.In addition,this paper incorporates multiple levels of moderating variables to enrich the study of board capital boundary conditions.CEO power and the degree of industry competition are selected as the moderating variables of the model at the executive level and industry level,respectively,to test the boundary effects played by the role of the main variables.The overall objectives of this study are:to construct an evaluation index model of enterprise high-quality development using hierarchical analysis,to construct a mechanism model of board capital acting on enterprise high-quality development through innovation strategy,to explore the influence of board capital on enterprise high-quality development through innovation strategy under the role of internal and external boundary regulation,and its development law,and finally to guide the practice of listed companies,and to provide a theoretical and methodological reference for research in related fields.This paper provides theoretical and methodological references for the research in this field.This paper establishes the mechanism model of this paper based on relevant theories and research methods,and uses scientific empirical tests to verify the rationality of the theoretical model.This paper selects the listed companies in Shanghai and Shenzhen from 2014 to 2019 as the initial sample,and determines the research object of this paper after processing the sample with the data quality.The data are analyzed according to the research content,and the main research contents include:1.constructing the model of enterprise high-quality development evaluation index;2.constructing the all-factor mechanism model of board capital acting on enterprise high-quality development through innovation strategy;3.testing the mechanism of action and marginal effect of board capital acting on high-quality development through innovation strategy.This paper firstly decomposes the enterprise high-quality development into four layers according to the hierarchical attributes:the target layer,i.e.the enterprise high-quality development index;the first criterion layer,which contains six first-level indicators of economic efficiency,innovation capability,green governance,openness level,social contribution and hidden benefits;the second criterion layer,which is subdivided into the first criterion layer according to the specific connotation of the items,such as the economic efficiency is subdivided into the current situation of earnings,profitability and economic The second criterion layer,according to the specific connotation of the project,subdivides the first criterion layer,such as the economic benefits into the current state of earnings,profitability and economic value,which contains 17 secondary indicators;the object layer,which includes 39 tertiary measurement indicators,such as net assets,net profit,and total operating income.Based on the hierarchical analysis method(AHP),this paper constructs a model of enterprise high quality development index and puts the calculated enterprise high quality development composite score into a multiple regression model.The conclusions of this paper include the following seven aspects:1.The assessment system of enterprise high quality development contains multiple levels and dimensions,and the single dimension measurement method cannot fully cover the connotation of enterprise high quality development;2.The current situation of enterprise high quality development is not optimistic,and the decline of return on assets and marginal profitability leads to the decline of profitability of listed companies in China,which in turn shows the decline of enterprise high quality development;3.Board capital plays a positive role in promoting the high-quality development of enterprises;4.The influence of board capital on innovation investment varies according to the content,and the effect of different dimensions varies;5.Innovation investment promotes the high-quality development of sample enterprises,and its mediating effect varies according to the content of board capital,and the mediating effect of innovation investment is not a simple linear effect,but needs to be analyzed according to the specific content of board capital;6.The degree of industry competition and CEO power have important moderating effects on the relationship between variables,mainly on the relationship between board capital and innovation investment;7.Property rights attributes and firm size also play moderating roles on the relationship between board capital,innovation investment and high-quality corporate development.This paper identifies complex relationships among variables,especially the verification of non-linear relationships,which makes the findings of this paper of significant value and practical guidance.This paper uses hierarchical analysis to establish the model of enterprise high quality development index,which on the one hand avoids the defects of entropy method that over-relies on data quality,and on the other hand avoids the problem that the indicators in the principal component analysis method have no practical significance,making the high quality development measurement more scientific and reasonable.This study proves that the hierarchical analysis method is operable in refining the index of high-quality development of enterprises,while the multi-level and multi-dimensional enterprise high-quality development measurement system requires that the development goals of enterprises should pursue diversification and the performance assessment is no longer restricted to economic indicators;the results of the theoretical analysis in this paper illustrate that different forms of board capital have different effects on the innovation investment of enterprises,and the results of the empirical analysis also show that the effect of board capital on The results of the theoretical analysis show that different forms of board capital have different effects on innovation investment.The results of the empirical analysis also indicate that the role of board capital on innovation investment is complex.The research on board capital should take into account the attributes and characteristics of the variables,explore the role and effects of each variable,and investigate the attributes and characteristics of the variables independently.The findings of this paper reveal that the board of directors should use more highly educated,export-oriented,socially capitalized and industry-experienced board members to actively play a positive role in corporate development and allocate the "optimal state"of board capital;moreover,the period when political connections and financial capital brought rapid dividends to corporate innovation is over.It is difficult for enterprises to rely on political and financial resources to establish competitive advantages.The future development of enterprises must fully realize the importance of independent innovation and take advantage of technological innovation to promote high-quality development of enterprises.Of course,as an open system,enterprises should pay attention to the impact of internal and external contextual factors on their own development,and seek the most matching and suitable development model under the influence of the external environment.This study has the following innovations.1.A complete index model is constructed for the measurement of high-quality enterprise development from six aspects:economic efficiency,innovation capability,green governance,openness level,social contribution and hidden benefits,and the composite measurement index of high-quality enterprise development is refined to promote the longitudinal development in this field.2.A mechanistic model of the impact of board capital on high-quality corporate development through innovation strategy is constructed to further validate the rationality of the SCP research paradigm of the impact of board informal system on performance through corporate strategy.3.The complex relationship between variables is verified,and it is confirmed that the relationship between board capital,innovation strategy and high quality corporate development is non-linear,and the effect of different capital on innovation investment is different,which makes the theoretical model more suitable for reality.There are also limitations in this paper.This paper uses multi-level and multi-perspective indicators to construct a system for measuring high-quality corporate development,but due to the measurability of indicators and the availability of data,it cannot be fully exhaustive in the construction of the evaluation index system,and it cannot avoid the existence of measurement errors in the measurement.In the future,we need to further explore the supplementary dimensions of the evaluation index system of enterprise high-quality development from theory and practice,and find a more reasonable measurement method for indicators.In addition,this paper uses innovation input to measure enterprise innovation strategy,which can only represent the decision result of innovation strategy and does not completely open the black box of decision making.Future exploration of the role of innovation strategy can further explore the process variables of innovation decision making.Finally,board decisions and firm development are the result of the combined effect of internal and external factors,and contextual variables play an important moderating role in all stages of firm development.In this paper,the moderating effects of industry competition and CEO power on the relationship of variables are examined,and the moderating effects of property rights attributes and firm size are also examined in further explorations,and the moderating variables cover the influencing variables at multiple levels inside and outside the enterprise development.However,the internal and external environments of firms are dynamic in nature and involve many development variables,and future research can incorporate more contextual variables.