Does Adverse Business Environment Influence Corporate Innovation Performance?

摘要

An important question that was ignored in available literature is whether corporate innovation performance is influenced by adverse business environment. In this regard, this paper uses Chinese private enterprises as the example to conduct an empirical study on the relationship between innovation investment and corporate performance based on the World Bank's 2012 survey data of enterprises, and explores the moderating effect of adverse business environment on this relationship at a micro level. Conclusions drawn from the empirical analysis show that, in the context of economic transformation, innovation investment can help promote private enterprises' market competitiveness, but this positive relationship is restricted by unfavorable business environment factors such as tax burden and business access. This paper has important theoretical and practical implications for the in-depth understanding of corporate innovative activities in the new economic environment and for the government to promote relevant guiding measures.