Environment Uncertainty and Firm Technological Innovation: Evidence from Chinese Listed Firms

Abstract

Abstract:

In this paper, we examine the relationship between environment uncertainty and technological innovation based on the sample of Chinese (non-financial) listed companies during the period 2005-2011. The results suggest that, the relationship between environment uncertainty and technological innovation can be seen as an inverted U shape. Further study shows the nature of the property rights, firm size and profitability have significant influences on the inverted-U shaped relationship: When the level of environment uncertainty is given, the non-state-owned enterprises tend to be more innovative than SOEs, firms with a larger size should enhance technological innovation motivations, and higher profitability can be beneficial for firm innovation. The paper deepens the knowledge about the relationship between environment uncertainty and technological innovation, provides robust evidence for the interpretation of the relationship, and it is also quite instructive for the government to improve the technological innovation environment and relevant policy.

Key words: environment uncertainty, technological innovation, reciprocal causation, moderating effects

Yuan Jianguo, Cheng Chen, Hou Qingsong. Environment Uncertainty and Firm Technological Innovation: Evidence from Chinese Listed Firms[J]. , 2015, 27(10): 60-69.

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