The Intfluence Mechanism And Empirical Research Of Political Connections On Enterprise Technology Innovation

Nowadays,political connection has become a common phenomenon in enterprises.How it affects corporate performance has attracted wide attention from scholars at home and abroad,but the research conclusions are not consistent.In the transition period of China's planned economy to the market economy,the market system and administrative intervention coexist.The government has important resources,which determine the survival and development of the enterprise.Therefore,in order to obtain these resources and facilities,such as government subsidies and tax incentives,enterprises choose establish and maintain a relationship with the government.However,political connection is a two-way exchange behavior,enterprises also need to pay a certain cost,such as redundant employees,decision-making interventions,etc.,which are not helpful to the long-term development of enterprises.Therefore,the influence of political connections on technological innovation of enterprises depends on the interaction between the two directions.In addition,most scholars pay more attention to its impact on corporate economic and operational performance,and the investigation of innovation is still insufficient.Innovation is a key resource for enterprises to improve their competitiveness.If enterprises want to obtain long-lasting profits,they must adhere to continuous independent innovation and improve the level of technological innovation.Therefore,according to this phenomenon,the main research questions of this paper are put forward:(1)Does political connection hinder the technological innovation of enterprises?(2)How does political connection affect enterprise technological innovation.what is its impact mechanism?(3)Under the different marketization process,is the influence of political connection on company technological innovation different?This paper uses empirical analysis method,combined with the non-balanced panel data of manufacturing private listed companies from 2010 to 2016,based on rent-seeking theory.high-order theory and resource-based view,constructs the theoretical model.and from time and region dimensions to analyze the relationship between political connections and enterprise technology innovation and its impact mechanism.and further examine whether different types of political connections and marketization processes have impacts on enterprise technological innovation.The results show that:First,political as a kind of rent-seeking behavior has a hindrance to enterprise technology innovation and distorts the enterprise investment strategy.the R&D investment intensity of innovation resources has a mediating effect on the relationship between them;that is,enterprises with political connections will hinder the technological innovation of enterprises by reducing the intensity of R&D investment.Second,the marketization process has a negative adjustment effect on the relationship between political connection and enterprise technology innovation.The higher the degree of marketization,the more obvious the hindrance of political association to enterprise technological innovation Third,from the perspective of time,with 2012 as the demarcation point,there are significant differences in the impediments of political connections to technological innovation in enterprises;from a regional perspective,in areas with a high degree of marketization,political connections to technological innovation of enterprises the obstruction effect is more obvious;from the perspective of the type of political connection,the political association of government officials is more hinder to the technological innovation of enterprises than the representative committee.This paper has theoretical and practical significance.First,from a theoretical point of view,this paper studies the technological innovation of enterprises from the perspective of political connection,which is an in-depth and complementary research on the technological innovation of existing enterprises.Most of the previous researches focused on the impact of legal protection,industry competition,internal corporate governance on corporate technological innovation And most of the research ignores the influence mechanism of political connections.Therefore,from the perspective of R&D investment intensity,this paper further explores the influence mechanism of political connections on enterprise technology innovation.This paper also analyzes the differences and causes of the influence of political connections on enterprise technology innovation from the two dimensions of time and region,and enriches the research on enterprise technology innovation research.Second,from a practical point of view,this paper can provide some inspiration for enterprises and governments.For enterprises,we must realize that independent innovation is an important source of competitive advantage for enterprises,and should accurately assess the advantages and disadvantages of political connections.For the government,it is necessary to streamline administration and delegate more powers,promote the transformation of government functions into public services,reduce market intervention,and give full play to the resource allocation role of this "invisible hand" to provide enterprises with a fair and transparent business environment.At the same time,the government needs to formulate a reasonable and effective policy system in time to stimulate the enthusiasm of independent innovation and improve the main position of enterprise innovation.