From the perspective of manufacturing enterprises’ sustainable development, this study investigates the relationship between corporate governance structure and substantive innovation behavior. By combining theoretical research and empirical research methods, the research selected data information from manufacturing enterprises in southern China from 2016 to 2020 to conduct regression analysis to investigate the impact of key factors in the internal governance structure of manufacturing enterprises on their substantive innovation behavior. The results show that in the development of manufacturing enterprises, substantive innovation behaviors such as product innovation and service innovation are influenced by the equity structure, board structure, and management structure of the enterprise. The concentration of equity structure and innovation behavior exhibit an inverted U-shaped relationship. The larger the board size, the worse the innovation behavior, huge stakeholders and excessive distribution of interests will lead to shareholders’ concession logic, thus restricting the sustainable development of enterprises.
References
[1]
Abatecola, G., Belussi, F., Breslin, D., & Filatotchev, I. (2016). Darwinism, Organizational Evolution and Survival: Key Challenges for Future Research. Journal of Management & Governance, 20, 1-17. https://doi.org/10.1007/s10997-015-9310-8
[2]
Arnold, E., Boekholt, P., Deiaco, E., Mckibbin, S., De la Mothe, J., Simmonds, P., Zaman, R. et al. (2003). Research and Innovation Governance in Eight Countries: A Meta-Analysisof Work Funded by EZ (Netherlands) and RCN (Norway). Technopolis.
[3]
Asensio-López, D., Cabeza-García, L., & González-Álvarez, N. (2019). Corporate Governance and Innovation: A Theoretical Review. European Journal of Management and Business Economics, 28, 266-284. https://doi.org/10.1108/ejmbe-05-2018-0056
[4]
Balkin, D. B., Markman, G. D., & Gomez-Mejia, L. R. (2000). Is CEO Pay in High-Technology Firms Related to Innovation? Academy of Management Journal, 43, 1118-1129. https://doi.org/10.5465/1556340
[5]
Becker-Blease, J. R. (2011). Governance and Innovation. Journal of Corporate Finance, 17, 947-958. https://doi.org/10.1016/j.jcorpfin.2011.04.003
[6]
Bobillo, A. M., Rodríguez-Sanz, J. A., & Tejerina-Gaite, F. (2018). Corporate Governance Drivers of Firm Innovation Capacity. Review of International Economics, 26, 721-741. https://doi.org/10.1111/roie.12321
[7]
Bushey, B. (1998). The Influence of Institutional Investors on Myopic R&D Investment Behavior. Accounting Review, 73, 305-353.
[8]
Cerna, L. (2014). The Governance of Innovation in Education: The Governance of Innovation in Education. Neveléstudomány: Oktatás-Kutatás-Innováció, 2, 5-21.
[9]
Clifton, N., Keast, R., Pickernell, D., & Senior, M. (2010). Network Structure, Knowledge Governance, and Firm Performance: Evidence from Innovation Networks and SMEs in the UK. Growth and Change, 41, 337-373. https://doi.org/10.1111/j.1468-2257.2010.00529.x
[10]
Deschamps, J. P., & Nelson, B. (2014). Innovation Governance: How Top Management Organizes and Mobilizes for Innovation. John Wiley & Sons.
[11]
Feller, J., Finnegan, P., Hayes, J., & O’Reilly, P. (2009). Institutionalising Information Asymmetry: Governance Structures for Open Innovation. Information Technology & People, 22, 297-316. https://doi.org/10.1108/09593840911002423
[12]
Fernandes, A. A. R., & Solimun, (2017). Moderating Effects Orientation and Innovation Strategy on the Effect of Uncertainty on the Performance of Business Environment. International Journal of Law and Management, 59, 1211-1219. https://doi.org/10.1108/ijlma-10-2016-0088
[13]
Filatotchev, I., Aguilera, R. V., & Wright, M. (2020). From Governance of Innovation to Innovations in Governance. Academy of Management Perspectives, 34, 173-181. https://doi.org/10.5465/amp.2017.0011
[14]
Frischer, J. (1993). Empowering Management in New Product Development Units. Journal of Product Innovation Management, 10, 393-401. https://doi.org/10.1016/0737-6782(93)90097-a
[15]
Ganguli, S. K., & Guha Deb, S. (2021). Board Composition, Ownership Structure and Firm Performance: New Indian Evidence. International Journal of Disclosure and Governance, 18, 256-268. https://doi.org/10.1057/s41310-021-00113-5
[16]
Gaur, S. S., Bathula, H., & Singh, D. (2015). Ownership Concentration, Board Characteristics and Firm Performance: A Contingency Framework. Management Decision, 53, 911-931. https://doi.org/10.1108/md-08-2014-0519
[17]
Geng, H., Huang, Y., Lin, C., & Liu, S. (2022). Minimum Wage and Corporate Investment: Evidence from Manufacturing Firms in China. Journal of Financial and Quantitative Analysis, 57, 94-126. https://doi.org/10.1017/s0022109021000053
[18]
Gonzales-Bustos, J. P., & Hernández-Lara, A. B. (2016). Corporate Governance and Innovation: A Systematic Literature Review. Corporate Ownership and Control, 13, 33-45. https://doi.org/10.22495/cocv13i3p3
[19]
Goyer, M. (2001). Corporate Governance and the Innovation System in France 1985-2000. Industry and Innovation, 8, 135-158. https://doi.org/10.1080/13662710125208
[20]
He, X. (2024). Gather Global Wisdom and Talk about the Future of Science—Written before the 2024 World Forum on Science, Technology and Development. China Eco-nomic Net. http://intl.ce.cn/qqss/202410/21/t20241021_39175800.shtml
[21]
Heidenreich, M., & Koschatzky, K. (2011). Regional Innovation Governance. In P. Cooke, B. Asheim, R. Boschma, R. Martin, D. Schwartz, & F. Tödtling (Eds.), Handbook of Regional Innovation and Growth (p. 648). Edward Elgar Publishing. https://doi.org/10.4337/9780857931504.00061
[22]
Heubeck, T., & Meckl, R. (2024). Does Board Composition Matter for Innovation? A Longitudinal Study of the Organizational Slack–innovation Relationship in Nasdaq-100 Companies. Journal of Management and Governance, 28, 597-624. https://doi.org/10.1007/s10997-023-09687-4
[23]
Hill, C. W. L., & Snell, S. A. (1988). External Control, Corporate Strategy, and Firm Performance in Research‐intensive Industries. Strategic Management Journal, 9, 577-590. https://doi.org/10.1002/smj.4250090605
[24]
Hirshleifer, D., Low, A., & Teoh, S. H. (2012). Are Overconfident CEOs Better Innovators? The Journal of Finance, 67, 1457-1498. https://doi.org/10.1111/j.1540-6261.2012.01753.x
[25]
Hosono, K., Tomiyama, M., & Miyagawa, T. (2004). Corporate Governance and Research and Development: Evidence from Japan. Economics of Innovation and New Technology, 13, 141-164. https://doi.org/10.1080/10438590410001628125
[26]
Jalilian, N., & Mirghafoori, S. H. (2020). Presenting Sustainable Supply Chain Fuzzy Rotation Matrix Framework to Manage Business Challenges in the Context of Sustainable Supply Chain Management. Journal of Modelling in Management, 15, 35-49. https://doi.org/10.1108/jm2-05-2018-0065
[27]
Jensen, M. C. (1988). Takeovers: Their Causes and Consequences. Journal of Economic Perspectives, 2, 21-48. https://doi.org/10.1257/jep.2.1.21
[28]
Jensen, M. C. (1993). The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems. The Journal of Finance, 48, 831-880. https://doi.org/10.1111/j.1540-6261.1993.tb04022.x
[29]
Jentsch, V. (2019). Board Composition, Ownership Structure and Firm Value: Empirical Evidence from Switzerland. European Business Organization Law Review, 20, 203-254. https://doi.org/10.1007/s40804-018-00128-6
[30]
Jia, N., Huang, K. G., & Man Zhang, C. (2019). Public Governance, Corporate Governance, and Firm Innovation: An Examination of State-Owned Enterprises. Academy of Management Journal, 62, 220-247. https://doi.org/10.5465/amj.2016.0543
[31]
Kitschelt, H. (1991). Industrial Governance Structures, Innovation Strategies, and the Case of Japan: Sectoral or Cross-National Comparative Analysis? International Organization, 45, 453-493. https://doi.org/10.1017/s002081830003318x
[32]
Koschatzky, K., & Kroll, H. (2007). Which Side of the Coin? The Regional Governance of Science and Innovation. Regional Studies, 41, 1115-1127. https://doi.org/10.1080/00343400701530857
[33]
Kuhlmann, S. (2001). Future Governance of Innovation Policy in Europe—Three Scenarios. Research Policy, 30, 953-976. https://doi.org/10.1016/s0048-7333(00)00167-0
[34]
Lacetera, N. (2001). Corporate Governance and the Governance of Innovation: The Case of Pharmaceutical Industry. Journal of Management and Governance, 5, 29-59. https://doi.org/10.1023/a:1017907119114
[35]
Lane, P. J., Cannella, A. A., & Lubatkin, M. H. (1998). Agency Problems as Antecedents to Unrelated Mergers and Diversification: Amihud and Lev Reconsidered. Strategic Management Journal, 19, 555-578. https://doi.org/10.1002/(sici)1097-0266(199806)19:6<555::aid-smj955>3.0.co;2-y
[36]
Lee, P. M., & O’Neill, H. M. (2003). Ownership Structures and R&D Investments of U.S. and Japanese Firms: Agency and Stewardship Perspectives. Academy of Management Journal, 46, 212-225. https://doi.org/10.2307/30040615
[37]
Li, S., Liu, Y., & Xu, Y. (2023). Does ESG Performance Improve the Quantity and Quality of Innovation? The Mediating Role of Internal Control Effectiveness and Analyst Coverage. Sustainability, 15, Article 104. https://doi.org/10.3390/su15010104
[38]
Li, T. T. (2024). Probe into the Path of Financial Digitalization Construction of State-Owned Enterprises. Chinese Agricultural Accounting, 34, 6-8.
[39]
Lopes, A. V., & Farias, J. S. (2022). How Can Governance Support Collaborative Innovation in the Public Sector? A Systematic Review of the Literature. International Review of Administrative Sciences, 88, 114-130. https://doi.org/10.1177/0020852319893444
[40]
Ma, J. W. and Gao, Y. Q. (2021). Shareholding Structure, Board Governance, and Corporate Performance. International Journal of Frontiers in Sociology, 3, 18-29.
[41]
Meijer, A. (2015). E-Governance Innovation: Barriers and Strategies. Government Information Quarterly, 32, 198-206. https://doi.org/10.1016/j.giq.2015.01.001
[42]
Minetti, R., Murro, P., & Paiella, M. (2012). Ownership Structure, Governance, and Innovation: Evidence from Italy. Government of the Italian Republic (Italy), Ministry of Economy and Finance, Department of the Treasury Working Paper.
[43]
Minetti, R., Murro, P., & Paiella, M. (2015). Ownership Structure, Governance, and Innovation. European Economic Review, 80, 165-193. https://doi.org/10.1016/j.euroecorev.2015.09.007
[44]
Morisson, A., & Doussineau, M. (2019). Regional Innovation Governance and Place-Based Policies: Design, Implementation and Implications. Regional Studies, Regional Science, 6, 101-116. https://doi.org/10.1080/21681376.2019.1578257
[45]
Munari, F., & Sobrero, M. (2003). Corporate Governance and Innovation. In M. Calderini, P. Garrone, & M. Sobrero (Eds.), Corporate Governance, Market Structure and Innovation (p. 304). Edward Elgar Publishing. https://doi.org/10.4337/9781843765363.00010
[46]
Murphy, B., & Sun, L. (2023). Asset Redeployability and Employee Performance. International Journal of Disclosure and Governance, 20, 185-199. https://doi.org/10.1057/s41310-022-00158-0
[47]
Mycos News (2023). Blue Book of Employment in 2023 Was Officially Released. http://www.mycos.com.cn/index.php/Index/news_info/nav/3/id/2023714.html
[48]
Peggy, M., & O’Neill Hugh, M. (2003). Ownership Structures and R&D Investments of U.S. and Japanese Firms: Agency and Stewardship Perspectives. Academy of Management Journal, 46, 212-225. https://doi.org/10.5465/30040615
[49]
Priporas, C., Kamenidou, I., Nguyen, N., & Shams, R. (2020). The Impact of the Macro-Environment on Consumer Scepticism Towards Cause-Related Marketing: Insights from an Economic Crisis Setting. International Marketing Review, 37, 841-861. https://doi.org/10.1108/imr-04-2019-0124
[50]
SaiDiZhiKu (2024). 2024 CCID Forum: CCID Released Manufacturing Innovation Index Report 2023. https://ccidgroup.com/info/1155/39599.htm
[51]
Salike, N., Huang, Y., Yin, Z., & Zeng, D. Z. (2022). Making of an Innovative Economy: A Study of Diversity of Chinese Enterprise Innovation. China Finance Review International, 12, 496-518. https://doi.org/10.1108/cfri-10-2020-0135
[52]
Scherer, A. G., & Voegtlin, C. (2020). Corporate Governance for Responsible Innovation: Approaches to Corporate Governance and Their Implications for Sustainable Development. Academy of Management Perspectives, 34, 182-208. https://doi.org/10.5465/amp.2017.0175
[53]
Scott, S. G., & Bruce, R. A. (1994). Determinants of Innovative Behavior: A Path Model of Individual Innovation in the Workplace. Academy of Management Journal, 37, 580-607. https://doi.org/10.2307/256701
[54]
Shahrier, N. A., Ho, J. S. Y., & Gaur, S. S. (2020). Ownership Concentration, Board Characteristics and Firm Performance among Shariah-Compliant Companies. Journal of Management and Governance, 24, 365-388. https://doi.org/10.1007/s10997-018-9436-6
[55]
Shleifer, A., & Vishny, R. W. (1986). Greenmail, White Knights, and Shareholders’ Interest. The Rand Journal of Economics, 17, 293-309. https://doi.org/10.2307/2555712
[56]
Singh, D. A., & Gaur, A. S. (2013). Governance Structure, Innovation and Internationalization: Evidence from India. Journal of International Management, 19, 300-309. https://doi.org/10.1016/j.intman.2013.03.006
[57]
Sivak, R., Caplanova, A., & Hudson, J. (2011). The Impact of Governance and Infrastructure on Innovation. Post-Communist Economies, 23, 203-217. https://doi.org/10.1080/14631377.2011.570050
[58]
Sorenson, O. (2022). Flat Firms, Complementary Choices, Employee Effort, and the Pyramid Principle. Journal of Organization Design, 11, 11-14. https://doi.org/10.1007/s41469-022-00115-9
[59]
Sullivan, R. S. (2011). Business Schools and the Innovation Conundrum. Journal of Management Development, 30, 492-498. https://doi.org/10.1108/02621711111133000
[60]
Textor, C. (2023) Internal Research and Development (R&D) Spending of Industrial Enterprises in China in 2022, by Industry. https://www.statista.com/statistics/234726/research-and-development-spending-in-china-by-industry/
[61]
Tierney, P., Farmer, S. M., & Graen, G. B. (1999). An Examination of Leadership and Employee Creativity: The Relevance of Traits and Relationships. Personnel Psychology, 52, 591-620. https://doi.org/10.1111/j.1744-6570.1999.tb00173.x
[62]
Todeva, E. (2016). Network Management and Governance. In R. Alhajj, & J. Rokne (Eds.), Encyclopedia of Social Network Analysis and Mining (pp. 1-10). Springer. https://doi.org/10.1007/978-1-4614-7163-9_70-1
[63]
Tylecote, A., & Conesa, E. (1999). Corporate Governance, Innovation Systems and Industrial Performance. Industry and Innovation, 6, 25-50. https://doi.org/10.1080/13662719900000003
[64]
Tylecote, A., & Ramirez, P. (2006). Corporate Governance and Innovation: The UK Compared with the US and ‘Insider’ Economies. Research Policy, 35, 160-180. https://doi.org/10.1016/j.respol.2005.09.004
[65]
Wang, N., Cui, D., & Jin, C. (2023). The Value of Internal Control during a Crisis: Evidence from Enterprise Resilience. Sustainability, 15, Article 513. https://doi.org/10.3390/su15010513
[66]
Wang, T., & Cheng, D. (2023). Executive Shareholding, Institutional Investor Shareholding and Enterprise Innovation. European Journal of Innovation Management, 26, 1744-1762. https://doi.org/10.1108/ejim-11-2021-0553
[67]
Xu, P., & Bai, G. (2019). Board Governance, Sustainable Innovation Capability and Corporate Expansion: Empirical Data from Private Listed Companies in China. Sustainability, 11, Article 3529. https://doi.org/10.3390/su11133529
[68]
Yoshikawa, T., Tsui-Auch, L. S., & McGuire, J. (2007). Corporate Governance Reform as Institutional Innovation: The Case of Japan. Organization Science, 18, 973-988. https://doi.org/10.1287/orsc.1070.0290
[69]
Zahra, S. A., Neubaum, D. O., & Huse, M. (2000). Entrepreneurship in Medium-Size Companies: Exploring the Effects of Ownership and Governance Systems. Journal of Management, 26, 947-976. https://doi.org/10.1177/014920630002600509
[70]
Zhang, W., Li, J., & Mai, Y. (2019). The Effect of Industry Association on Firm Innovation in Chinese Private Ventures. Management Decision, 57, 2414-2435. https://doi.org/10.1108/md-05-2018-0538
