The Impact Of Product Market Competition And Board Faultlines On Technology Innovation

Currently,China's economic development has been transformed from high-speed growth stage to high-quality development stage.Economic growth will rely more on technological progress,and innovation has become a new source of power for China's economic growth in the new era.The academic community has paid great attention to corporate innovation activities,and scholars are committed to exploring the mechanisms and paths to improve innovation capabilities.For enterprises,the board of directors is the core of the corporate governance mechanism.It is an important function of the board of directors to formulate development strategies and decisions.The communication and information acquisition efficiency of board members in the decision-making process has an important impact on the formulation and implementation of corporate innovation strategy decisions.The theory of group faultlines reveals that the diverse characteristics of board members and the interaction between multiple features can affect the communication and information acquisition efficiency of group members.Based on this,this paper studies the impact of the board faultlines on the technological innovation capability of enterprises.In the research of the thesis,the paper firstly draws on the relevant literature,and divides the board faultlines into the bio-demographic faultlines and task-related faultlines.Secondly,by using the theories of social identity theory,similarity attraction paradigm theory,and high ladder team theory,the author holds that the bio-demographic faultlines formed by gender and age of board members will intensify the contradictions among subgroups and lead to low-level information exchange.The task-related faultlines formed by group members due to their educational background and tenure will promote the communication and discussion among subgroups and realize the information sharing among subgroups.Such two different paths have different effects on the efficiency of communication and information acquisition in the group decision-making process of the board of directors,and then on the decision-making results of the board of directors.On this basis,this paper took theselected gem listed companies as samples,and based on the relevant data of the sample companies from 2015 to 2017,empirically tested the impact of the board of directors' bio-demographic faultlines and task-related faultlines on the technological innovation ability of enterprises,and further studied the regulatory effect of product market competition,an external environmental variable.The empirical study shows that :(1)The board of directors bio-demographic faultlines has a significant negative impact on the technological innovation ability of enterprises,which is not conducive to the improvement of the technological innovation ability of enterprises.(2)The Board task-related faultlines has a positive impact on the technological innovation ability of enterprises.(3)Product market competition plays a negative role in the process of the bio-demographic faultlines of the board of directors and the technological innovation capability of the enterprise.That is,in the case of fierce competition in the product market,the physiological characteristics of the board of directors breaks the technological innovation capability of the enterprise.The negative impact of the product is weakened;(4)Product market competition plays a positive role in the process of the board-group task-related faultlines and technological innovation,that is,the more intense the product market competition,the board group task-related fracture zone to enterprise technology The positive impact of innovation capacity is greater.The research in this paper is helpful to expand the relevant research in the field of faultlines of board of directors,which is not only the deepening and enrichment of existing research,but also the supplement and improvement of the related research on factors affecting the technological innovation ability of enterprises.In addition,the research of this paper has important practical value for listed companies to improve the internal construction of the board of directors,enhance the technological innovation ability of enterprises,and achieve high-quality growth and sustainable development.