Research On The Relationship Between Innovation Ability,Compensation Incentive And Enterprise Performance

In recent years,with the deepening of economic globalization,the competitive environment of Chinese enterprises has changed from domestic competition to international competition,and Chinese enterprises are facing more and more pressure.While blindly pursuing the improvement of technological innovation ability,more and more enterprises encounter bottlenecks in the process of development.One of the key reasons is the imbalance between technological innovation ability and management innovation ability.Nowadays,the innovation ability of enterprises has become an important source for the formation and development of their core competitiveness,which can be regarded as composed of technology innovation ability and management innovation ability.The technological innovation ability and management innovation ability of an enterprise are like the two wings of the bird and the two rounds of the car.In recent years,China's manufacturing industry is developing at a very rapid speed,but China is only a big manufacturing country at present,it has not become a strong manufacturing country.For manufacturing industry,the innovation ability of enterprises is particularly important.However,Chinese manufacturing enterprises attach far less importance to management innovation than technological innovation,and their management innovation ability is not very optimistic,which leads to a certain gap between China's manufacturing industry and that of developed countries.This article is dedicated to exploring the relationship between innovation capabilities,executive compensation incentive,and corporate performance.using 6044 observations from Shanghai and Shenzhen A-share manufacturing listed companies as the research data,the following conclusion is obtained by empirical research.On the one hand,management innovation ability and technology innovation ability both can be promoting effect on manufacturing enterprise performance,and the ability of management innovation to promote enterprise performance is stronger than that of technological innovation to promote enterprise performance,but the imbalance between management innovation and technology innovation ability will have negative impact on corporate performance.On the other hand,executive compensation incentive can positively regulate the relationship between technological innovation ability and enterprise performance as well as the relationship between management innovation ability and enterprise performance.The innovations of this paper have the following two points: First,there are few domestic literatures that divide innovation ability into technology innovation ability and management innovation ability to study the relationship between the two and enterprise performance.This paper uses factor analysis method to conduct the two.The construction of the evaluation system has made a more detailed study of the impact of the two and their unbalance on corporate performance.Secondly,the current literature only studies the adjustment effect of executive compensation incentives on the relationship between technological innovation capability and corporate performance.However,no scholars have been found to study the impact of executive compensation incentives on the relationship between management innovation capability and firm performance.