Research On The Influence Of The Senior Management Team Of Social Capital On R&D Investment

It is undoubtedly that scientific research and technological innovation plays an importantrole in the enterprise development. With the diversity of enterprise management,multisectional operation is not uncommon, which brings the cut-throat competition. Theperson who does the research innovation will seize the market share. Research innovation isthe only way to strengthen the enterprise. The research on the investment of business R&D isof important significance for enterprise. R&D investment reflects innovation ability; thesuccessful implementation of R&D investment benefits the mastery of core technology,enhances the enterprise competitiveness, promotes the enterprise profit and plays an activerole in the enterprise long term development.The literature review and empirical analysis research method are adopted. Firstly, itreviews the concerning literature about the executive team’s social capital and the R&Dinvestment, which comes to the conclusion that there are several aspects that affect the R&Dinvestment, such as the enterprise scale,the enterprise financing, the preference of theexecutive team members, the characteristics of senior executives and the encouragement ofsenior executives’salary and share. Nowadays, the research on the social capital of seniorexecutive team is applied to all aspects of academic research.Some scholars deem thattheresearch has an important influence on the enterprise operating performance and the choiceof enterprise development strategy. As one of the enterprise development strategy choices,R&D investment is under the influence of the executive team’s social capital. Therefore, thepaper explores the approach and method of R&D investment from a new angle of view whichis the social capital of executive team.Secondly, related theories concerning executive team’s social capital and R&Dinvestment are explained in this paper which lays the theoretical foundation. The social capitalof the executive team is classified into the diverse communication social capital, thetime-revolution social capital, the social capital under incentive system and the social capitalbased on the network centrality. The theoretical analysis and research hypothesis of the socialcapital of executive team’s influence on the R&D investment is analyzed in accordance withthe before mentioned four aspects.Finally, there comes the choice of the research object-the GEM of listed companies. By using empirical analysis,according to the data from the year of2010to the year of2012，there comes the conclusion:the social capital of diverse communication and the R&Dinvestment are positive correlation, the social capital of time-revolution and the R&Dinvestment are negative correlation,the social capital under incentive system and the R&Dinvestment are positive correlation, the social capital based on the network centrality and theR&D investment are negative correlation. The research conclusion has certain instructiveeffect on the promotion of the R&D investment. The explanatory variable of replacementselection is used to testify the stability of the research conclusion. The research conclusion issummarized by means of the stability test. Through the stability test, there comes the researchconclusion, the flaws and limitations in this research and the expectation of the futureresearch.