Board Of Directors Group Faultline, Ownership Concentration And Company Innovation Strategy

Under the increasingly fierce external environment of market competition,how to achieve long-term development of enterprises has become an important issue of concern to the theoretical and practical circles.Innovation,as the curr ent trend of social development,is one of the important means for modern ent erprises to enhance their competitive advantages in social development.Innovati on strategy can not only help enterprises achieve competitive advantages,impro ve company performance,but also enable them to achieve competitive advantag es.Enterprises achieve long-term development in an increasingly complex exter nal environment.The board of directors plays a central role in strategic decisio n-making and corporate governance.The diversity of board members,the differ ences among members and the interaction of multiple characteristics will affect the behavior of board members and the quality of corporate strategic decisionmaking.As the basis of corporate governance structure,ownership structure det ermines the allocation of corporate control.The different ownership structure de termines the principal-agent relationship between the owner and the operator,a nd then affects the formulation of corporate strategic decisions.Based on the theory of Team Fracture Zone,High-echelon Theory,Resour ce-based Theory and Principal-Agent Theory,this paper makes a theoretical ana lysis of the relationship between board members' characteristics and innovation s trategy.It is believed that the physiological fractured zones formed by gender and age among board members will hinder information communication among members,aggravate contradictions among sub-groups and reduce the quality of board decision-making.The task-related fault zone formed by the level of educ ation and tenure of office among members will encourage members to strength en information communication,express different professional opinions,and impr ove the quality of decision-making of the board of directors.These two differe nt characteristics of board members will have different impacts on the communication and information acquisition efficiency among board members,and then have different impacts on the strategic decision-making of board of directors.On this basis,through the construction of relevant research hypothesis and mod el design,this paper chooses GEM listed companies as research samples,based on the relevant data of sample companies from 2013 to 2017,explores the re lationship between the break zone of board group and innovation strategy,and by introducing the moderating variable of ownership concentration,explores the break of board group by investigating the adjusting variable of ownership con centration.The research hypothesis is tested with the effect on innovation strate gy.The empirical results show that:(1)there is a negative correlation between the physiological characteristics of the board of directors and corporate innova tion strategy;(2)there is a positive correlation between the task-related fault z one of the board of directors and corporate innovation strategy;(3)the degree of ownership concentration plays a positive regulatory role in the relationship b etween the physiological characteristics of the board of directors and innovation strategy,that is,the higher the degree of ownership concentration,the stronge r the physiological characteristics of the fracture zone and innovation strategy.The negative correlation between strategies;(4)Equity concentration plays a ne gative regulatory role in the relationship between task-related fault zone and in novation strategy,that is,the higher the equity concentration of listed companie s,the weaker the positive role of task-related fault zone in innovation strategy.This study will help enrich the relevant theories of the break zone of the board of directors and innovation strategy,provide new theoretical evidence for enterprises to select board members,improve the quality of innovation strateg y decision-making and improve the optimal allocation of ownership structure,a nd provide reference for promoting enterprise innovation activities and improvin g corporate governance mechanism.