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The impact of business-government relations on firms' innovation: Evidence from Chinese manufacturing industry

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  • Tian, Yuan
  • Wang, Yupei
  • Xie, Xuemei
  • Jiao, Jie
  • Jiao, Hao

Abstract

Using stratified sample survey data from World Bank Enterprise Surveys, we conduct an empirical study of the relationship between business-government relations and firms' innovation in the Chinese manufacturing industry and explore both the internal and external boundaries that affect this relationship. The results suggest that in China, a transition economy in Northeast Asia, business-government relations have a significantly positive effect on firms' innovation. Female managers positively moderate the relationship between business-government relations and firms' innovation, but the market competition intensity negatively moderates the relationship between business-government relations and firms' innovation. This article makes some theoretical contributions to the study of firms' innovation, and, at the same time, provides a realistic operating path for firms to improve innovation.

Suggested Citation

  • Tian, Yuan & Wang, Yupei & Xie, Xuemei & Jiao, Jie & Jiao, Hao, 2019. "The impact of business-government relations on firms' innovation: Evidence from Chinese manufacturing industry," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 1-8.
    • Handle: RePEc:eee:tefoso:v:143:y:2019:i:c:p:1-8
    DOI: 10.1016/j.techfore.2019.02.007
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    4. Abbas, Sadia & Adapa, Sujana & Sheridan, Alison & Azeem, Muhammad Masood, 2022. "Informal competition and firm level innovation in South Asia: The moderating role of innovation time off and R&D intensity," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    5. Castaneda, Monica & Herrera, Milton M. & Méndez-Morales, Alberto, 2023. "A simulation-based approach for assessing the innovation barriers in the manufacturing firms," Technology in Society, Elsevier, vol. 75(C).
    6. Thakur-Wernz, Pooja & Bosse, Douglas, 2023. "Configurational framework of learning conduits used by emerging economy firms to improve their innovation performance," Journal of Business Research, Elsevier, vol. 157(C).
    7. Ha, Le Thanh & Dung, Hoang Phuong & Thanh, To Trung, 2023. "Bribery, global value chain decisions, and institutional constraints: Evidence from a cross-country firm-level data," International Economics, Elsevier, vol. 173(C), pages 119-142.
    8. Wang, Zhiqiang & Chen, Xiaoli & Zhang, Shanshan & Yin, Ying & Zhao, Xiande, 2022. "The impact of political ties on firm innovativeness: Testing a mediation and moderation model," Journal of Business Research, Elsevier, vol. 144(C), pages 523-534.
    9. Chen, Xuanyu & Yang, Na, 2024. "How does business environment affect firm digital transformation: A fsQCA study based on Chinese manufacturing firms," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 1114-1124.
    10. Liu, Dongwang, 2023. "Credit corruption, government relation and corporate innovation," Finance Research Letters, Elsevier, vol. 58(PB).
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