Governance Structure, The Relationship Of The R & D Investment And Business Performance

With advancement of science and technology, technical innovation oriented strategy is the key drive of economic growth, industrial upgrade and enterprise development. As one of emerging strategic industries in China, which matters country security, industrial revivalization and restructure, it is urgent for IT industry to enhance R&D investment, master core technology and upgrade innovative ability. Enterprise is main body for technical innovation, for which continuous R&D investment is an inevitable way to facing fiece competition, obtaining competitive advantage and realizing sustainable development.China's R&D investment in IT industry is far behind. Based on the importance of R&D investment for obtaining long-term competitive advantage, this assay analyzes the essential cause for the problems of R&D investment in China's IT industry. At the root of the matter, Enterprise R&D investment highly relies on strategic orientation of future development and organizational control of resources allocation. As the system mechanis of mattering stakeholdes and resources allocating, governance structure plays important role on strategic R&D investment.The main contributions of the assay are to construct "governance structure, R&D investment and performance" model, and to find out the relationship among three aspects subjected by China IT listed companies. First, to construct a conceptual model of "governance structure, R&D investment and performance" based on basic theoretical analysis. The factors of governance structure are defined from organizational integration (stockholder constructure), managerial decision (incentitive & monitor) and financial commission (financial ratio/investor), as well as specifically analyzing the inherent relation between governance structure and R&D investment. Secondly, to analyze the relation among governance structure, R&D investment and performance via quantative method. The results of research find out that diffirent aspects, such as stockholder structure, managerial decision mechanism, financial structure and so on, play different impact on R&D investment. Finally, to explosively analyze the structural relation among governance structure, R&D investment and performance thorough integrated model design.In the end, the essay further discusses the meanings for real management practice based on analysis and explanation of result. Some advice on optimized governance structure good for R&D investment are provided, to further promote the ability of enterprise competition and long-term development.