The Influence Of Buyer Power On Technological Innovation Of Upstream Enterprises

Through reading and combing the relevant literature on buyer power and technological innovation,I find that the conclusion on buyer powers influence on technological innovation is not unified.The divergence is mainly due to the different reasons for the formation of buyer power in different industries,and the forms of its manifestation and the types of technological innovation carried out by the upstream.Automobile industry is a special industry for its close connection between upstream and downstream,and it needs intensive technology and capital.Therefore,scholars have studied the influence of buyer power on technological innovation in automobile industry.The differences between forefathers research and this paper are the main research objective is the auto parts enterprises which is the upstream of automobile industry.To make research model close to reality,this paper takes parts enterprises’own within conditions and external environment into condition.Based on these works,this paper put hypothesis and proved it by building empirical model.Finally,the conclusion is that the relationship between downstream buyer power and the upstream enterprise technology innovation is "inverted U".By reviewing the practical background and relevant literatures,this paper proposes the theoretical hypothesis of the relationship between the downstream buyer power and the upstream enterprise technological innovation.It analyzes the influence mechanism of the buyer power on technological innovation,and constructs the linear and nonlinear empirical models respectively.This paper collected the balanced short panel data of 142 Chinese auto parts enterprises from 2014 to 2018.And it used the fixed-effect model to conduct regression on the data,so as to verify the correlation between buyer power and technical innovation.It is worth mentioning that,compared with previous studies,this paper no longer uses the crude "number of enterprises" index to measure the buyer power,but uses the more accurate index of "sales proportion of the top 5 customers".In addition,this paper also extended the research results to enterprises classified according to parts type,enterprise attributes and enterprise size.This work was to compare and analyze the influence differences of buyer power on parts enterprises’innovation with different enterprises characteristics.In this paper,we get some main conclusions.The first one is as far as parts industry in our country is concerned,the relationship between downstream buyer power and the upstream enterprise technology innovation is "inverted U".Within a certain degree of buyer power,it has a promoting effect on technology innovation.When buyer power is beyond a certain degree,it leads to "squeeze effect" of technological innovation.The second one is the influence of buyer power on the technological innovation of upstream enterprises is different due to the differences in the types of components,enterprise attributes and enterprise scale.Compared with tire and rubber enterprises,the technological innovation of spare parts enterprises is more significantly influenced by buyer power.The heterogeneity of buyer power caused by enterprise attribute difference is not significant.From the perspective of enterprise scale,the technological innovation activities of small and medium-sized enterprises are more significantly affected by the buyer power than those of large enterprises.