Research On The Relationship Between Institutional Environment,Political Relationship And Innovation Performance

With the promotion of the "Belt and Road" policy,China's comprehensive strength continues to increase and China's national economy develops rapidly.Innovation plays a vital role in the survival and development of Chinese enterprises,which not only can promote the development of economic strength of enterprises,but also affect the sustainable operation of enterprises.The company's innovation performance is an important indicator to measure the company's research and development process and the company's business innovation results.Enterprises are supposed to enlarge the proportion of research and development investment,improve their innovation ability,and improve their performance,so as to further enhance their innovation performance.Therefore,innovation performance is the top priority of enterprise development.Abiding by the development of the policy of �One Belt and One Road�,constructing an innovative country has become a development strategy,meanwhile Chinese enterprises are also in a period of escalating transformation,so that how to improve the innovation performance of enterprises is a core issue that attracts scholars to study and inquire continuously.Not only the significant role of the external institutional environment,but also the political connection,whose joint impacts of innovation performance have more important research significance for the enterprise's innovation performance.This thesis take advantages of literature review method and empirical analysis method,so as to analyze the external institutional environment,the internal political connection and the innovation performance of the enterprises through combing and analyzing the domestic and foreign institutional environment,political connection and innovation performance literature,with the institutional basis,technological innovation theory,resource-based theory as the theoretical basis,then establishes a model to propose research hypotheses and verify.This thesis selects the companies listed on GEM in the past three years from 2016 to 2018 as samples,and uses Stata14.0 data model analysis software to conduct empirical analysis on the samples.Firstly,it performs descriptive statistics on the external institutional environment,political connection,innovation performance and other control variables,and analyzes the correlations between the explained variables,explanatory variables,and control variables,so as to test the correlation of the variables.Secondly,it performs multiple regression analysis and robustness test on the research model and research hypothesis.Finally,it concludes through empirical analysis and research that the external institutional environment is divided into the degree of government intervention,the level of rule of law,and the level of economic and financial development,which positively promote the innovation performance of enterprises;The chairmen or general managers of enterprises with political connection can significantly promote the enterprises' innovation performance;under the combined effect of the institutional environment and the political connection,the promotion effect on the enterprises' innovation performance will be more significant.This thesis studies and analyzes the impact of external institutional environment and political connections on corporate innovation performance,thereby providing suggestions and ways to improve corporate innovation performance.