Moderating Effects Of Entrepreneurial Risk Appetite For R&D Investment And Firm Performance Relationship

In the trend of social and economic development, enterprises are facing the challenge to remain competitive and continuous innovation, R & D is the main power source to maintain the core competitiveness of enterprises. Although R & D investment is important for the development of enterprises, but different enterprises in R & D funds still has difference. The reason is that entrepreneurs control the R & D selection. Entrepreneur for an enterprise, he is not only a management, at the same time he is at the helm of the enterprise strategy formulation and implementation of R & D. Corporate R & D activities, although high input and high output, but also full of risk. How to deal with the enterprise of R & D activities often depends on the entrepreneur’s risk preference. Therefore, this study analyzed the entrepreneur risk preference, R & D investment and enterprise performance, and hope to find new ideas to improve the performance of enterprises.In this study, the innovation theory and the upper echelons theory was referenced. We studied the entrepreneurial risk preference, R & D investment and enterprise performance. Firstly, this paper explained the basic theory research, summarized the related research at home and abroad, and established a general theoretical framework; Secondly, we discussed the previous research ideas, research methods and research conclusion, put forward the research hypothesis, and constructed the research model adjustment function of the entrepreneur risk preference on the relationship between R & D investment and corporate performance; Finally,517 listing Corporation in 2012 China’s SME board as the sample data for research. The results of this study showed that R & D investment has a significant effect on firm performance, while the entrepreneur risk preference has a moderating effect on the results. Entrepreneurs more preference to take risks, a positive correlation between R & D investment and corporate performance is stronger. The results of this study to further clarify the mechanism of relationship among entrepreneurial risk preference, R & D investment and enterprise performance. This research could provide enlightenment for appointment of the enterprise management, and promoted the development of enterprises.