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Organization Capital and Corporate Innovation: Evidence from China

Author

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  • Cui, Huijie
  • Dai, Lixuan
  • Zhang, Yanan

Abstract

In this paper, we examine the impact of organization capital on corporate innovation activities by using a large sample of Chinese data during the period of 2005-2015. The main findings suggest that organization capital is one important determinant of corporate innovation output. Additional cross-sectional tests show that both political connection and industrial concentration will moderate the positive effect of organization capital on corporate innovation. We further identify that ensuring sufficient funding support and accelerating internationalization are two possible channels by which organization capital contributes to positive innovation output. Robustness tests help rule out possible endogenous concerns.

Suggested Citation

  • Cui, Huijie & Dai, Lixuan & Zhang, Yanan, 2021. "Organization Capital and Corporate Innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 43(C).
    • Handle: RePEc:eee:finlet:v:43:y:2021:i:c:s1544612321000374
    DOI: 10.1016/j.frl.2021.101956
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    References listed on IDEAS

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    6. Monica Violeta Achim & Alexandra Ioana Daniela Rus & Nawazish Mirza, 2024. "How does intellectual capital spur innovation in economy? A cross-country survey," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 3125-3154, December.
    7. Lin, Kun, 2023. "The impact of intellectual property protection on business performance of high-tech enterprises: The mediating effect of political-business relations," Finance Research Letters, Elsevier, vol. 54(C).
    8. Panta, Humnath & Narayanasamy, Arun & Panta, Ayush, 2023. "Organizational capital and credit ratings," Finance Research Letters, Elsevier, vol. 57(C).
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    More about this item

    Keywords

    Organization capital; Corporate innovation; Political connection; Industrial competition;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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