A Comprehensive Study On Influencing Factors Of The Manufacturing Enterprise Innovation Ability

The problem about how to improve the innovation ability of enterprises has been the focus of scholars. In the context of encouraging people to start their own businesses and to make innovations, it is more important to improve the innovation ability of enterprises. As an important industry to support the development of the national economy, the manufacturing industry needs to pay attention to its own upgrading and industrial upgrading. This paper carries a research on listed companies in manufacturing industry using the structural equation model. The impact of the industry life cycle,business cycle and enterprise internal factors including debt, incentives for executives,firm size and ownership structure on enterprise innovation ability are analyzed comprehensively. For listed manufacturing companies listed in 2014, we have the following results:The results of multi-group analysis based on the industry cycle show that: First,regardless of the industry cycle, the firm size is the most important factor of the innovation ability of the enterprise. Furthermore, for enterprises in growing industries,coporate debt is more important to the innovation ability than the ownership structure;for enterprises in declining industries, the situation is quite the opposite.The results of multi-group analysis based on the institutional environment show that: A better institutional environment will enhance the positive impact of firm size and executive incentives on enterprise innovation capability.The results of multi-group analysis based on the institutional environment carried in growing, mature and declining industries respectively show that: First, for enterprises in growing industries, good institutional environment will weaken the negative direct effect of debt on the enterprise innovation ability, and for those in declining industries, a better institutional environment will enhance the negative direct effect of debt on the enterprise innovation ability. What's more, for enterprises in declining industries, the direct effect of the executive incentive on the enterprise innovation ability is not significant in a better institutional environment.The above results show that the industry life cycle and institutional environment is the important background of innovation capability of manufacturing enterprises, and that the impact of the two on the innovation ability of enterprises together cannot be ignored. Therefore, when considering how to improve the innovation capability of manufacturing enterprises, the managers of firms and the government should take the institutional environment of the region and the industry life cycle into account. Results of this paper have important reference value for the promotion of the enterprise innovation ability.