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Reverse Mixed-Ownership Reform and Ambidextrous Innovation Investment in Private Enterprises: Evidence from China

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  • Jinfeng Wang
  • Min Xiao

Abstract

Amid the country's vigorous promotion of mixed-ownership reform, optimizing the layout of state-owned capital and guiding private enterprises in innovation are crucial for achieving high-quality economic development. This study, adopting the perspective of "reverse mixed-ownership reform," which involves the introduction of state-owned capital into private enterprises, analyzes the impact of state-owned equity and its shareholding level on the ambidextrous innovation investment of private enterprises using A-share private listed companies from 2007 to 2021 as samples. The findings reveal that the introduction of state-owned capital significantly enhances the ambidextrous innovation investment of private enterprises. Furthermore, there is an inverted U-shaped relationship between the level of state-owned equity shareholding and developmental innovation investment, while a linear positive correlation exists with exploratory innovation investment. Additionally, financing constraints play a mediating role in the relationship between state-owned equity participation and innovation investment, while agency costs negatively moderate the relationship between the introduction of state-owned capital and ambidextrous innovation investment. Private enterprises undergoing direct privatization exhibit stronger organizational inertia, exhibiting a positive impact on both types of innovation investment. This study provides theoretical support for further advancing mixed-ownership reform and rationalizing the layout of state-owned capital, while also offering empirical evidence for promoting high-quality development among private enterprises.

Suggested Citation

  • Jinfeng Wang & Min Xiao, 2024. "Reverse Mixed-Ownership Reform and Ambidextrous Innovation Investment in Private Enterprises: Evidence from China," International Journal of Business and Management, Canadian Center of Science and Education, vol. 19(4), pages 1-58, July.
    • Handle: RePEc:ibn:ijbmjn:v:19:y:2024:i:4:p:58
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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