Pushing boundaries or overstepping? Exploring the paradoxical impact of radical innovation on government subsidies in Chinese SMEs

IF 11.1 1区 管理学 Q1 ENGINEERING, INDUSTRIAL
Xin Pan , Xuanjin Chen , Shumin Qiu
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引用次数: 0

Abstract

Does radical innovation always benefit small and medium-sized enterprises (SMEs)? This paper explores the potential drawbacks of radical innovation by examining the complex relationship between the degree of innovation radicalness and government subsidies, within the framework of dual-process signalling theory. The study highlights the importance of both signal observability and the costs of signal interpretation in the context of obtaining government subsidies. Although an increase in innovation radicalness may enhance a firm's visibility to governments, it also significantly raises the costs associated with interpreting signals. As a result, there is an inverted U-shaped relationship between innovation radicalness and government subsidies. Furthermore, we found a positive moderating effect of political connections, suggesting that signal observability increases with stronger political ties. We tested our hypotheses using data from listed SMEs in China between 2004 and 2019. Our findings contribute to the literature on innovation and SMEs by indicating that the effects of radicalness may represent a case of ‘too much of a good thing’ for firms.

突破界限还是越界?探索激进创新对中国中小企业政府补贴的矛盾影响
激进创新是否总是有利于中小企业?本文在双过程信号理论的框架内,通过研究创新激进程度与政府补贴之间的复杂关系,探讨了激进创新的潜在弊端。研究强调了在获得政府补贴时信号可观察性和信号解释成本的重要性。虽然创新激进性的增加可能会提高企业对政府的能见度,但同时也会显著提高解读信号的相关成本。因此,创新激进性与政府补贴之间存在倒 U 型关系。此外,我们还发现政治关系具有积极的调节作用,这表明信号的可观察性会随着政治关系的加强而增加。我们使用 2004 年至 2019 年中国上市中小企业的数据检验了我们的假设。我们的研究结果表明,激进性的影响对企业来说可能是 "好事多磨",从而为有关创新和中小企业的文献做出了贡献。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Technovation
Technovation 管理科学-工程:工业
CiteScore
15.10
自引率
11.20%
发文量
208
审稿时长
91 days
期刊介绍: The interdisciplinary journal Technovation covers various aspects of technological innovation, exploring processes, products, and social impacts. It examines innovation in both process and product realms, including social innovations like regulatory frameworks and non-economic benefits. Topics range from emerging trends and capital for development to managing technology-intensive ventures and innovation in organizations of different sizes. It also discusses organizational structures, investment strategies for science and technology enterprises, and the roles of technological innovators. Additionally, it addresses technology transfer between developing countries and innovation across enterprise, political, and economic systems.
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