Stock Payment, State Ownership and Innovation Performance in China’s Pharmaceutical M&As

2021 ◽  
pp. 1-17
Author(s):  
Poshan Yu ◽  
Yingzi Hu
Keyword(s):  
State Ownership ◽  
Innovation Performance

State ownership, firm innovation and the moderating role of private-sector competition: the case of China

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongyan Yang ◽  
H. Kevin Steensma ◽  
Ting Ren
Keyword(s):  
Private Sector ◽  
Market Competition ◽  
New Products ◽  
Economic Value ◽  
Innovation Process ◽  
State Ownership ◽  
The State ◽  
Innovation Performance ◽  
Firm Characteristics ◽  
Content Type

Purpose This paper aims to study how state ownership influences the innovation process in terms of allocating resources toward searching for new solutions and converting these efforts into economic value. On one hand, deep pockets of the state provide slack resources that may facilitate risk taking and innovation. On the other hand, soft budgets can create incentive problems and dampen the efficient use of resources. The authors suggest how accounting for competitive context can disentangle these countervailing forces. Design/methodology/approach The authors use a panel of over 240,000 Chinese firms over the years 2004–2008. The broad sample and period afforded substantial variability in terms of state ownership within and across firms. The authors use a two-stage model and a within-firm (i.e. fixed-effects) design, controlling for all time-invariant firm characteristics and the problematic unobserved heterogeneity that can often lead to erroneous inferences. Furthermore, the relatively short window limits the likelihood of time-varying unobserved firm characteristics biasing the empirical results. Findings The authors found that private-sector competition has the opposite effect on the relationship between state ownership and the second step of the innovation process. In industries where there is robust private-sector competition, state ownership diminishes the firm’s ability to convert R&D efforts into economic value. Private-sector competition competes away any advantages state-owned firms may have in terms of developing or accessing the complementary resources needed for commercialization. Ultimately, the inefficiencies of state ownership in terms of relatively undisciplined selection and monitoring of R&D activities outweigh any potential resource advantages derived from state ownership. Originality/value The state remains a prominent player in many economies throughout the world. The authors explored how state ownership of firms influences the resources they expend in searching out new solutions, and their success in converting such resources into economically valuable new products and services. State ownership has potentially countervailing effects on innovation. The authors disentangle these countervailing effects through consideration of how accounting for competitive context could determine whether the beneficial effects of state ownership dominate its detrimental effects for both searching for new solutions and converting these efforts into economically valuable new products. With a focus of market competition as an external force that drives the difference in innovation between SOEs and the private-sector, this study serves as a parallel effort to Jia et al. (2019) who investigate the joint effect of public and corporate governance on SOEs’ innovation performance, and Zhou et al. (2017) who concern the balance of the institution and efficiency logics on the comparative advantage of SOEs over privately owned enterprises in innovation performance.

Intangible resources and firms' innovation performance: empirical evidence from Chinese firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiuyuan Fang ◽  
Marshall S. Jiang ◽  
Yugang Li
Keyword(s):  
Institutional Development ◽  
State Ownership ◽  
Innovation Performance ◽  
Firm Innovation ◽  
Content Type ◽  
Industrial Enterprises ◽  
Intangible Resources ◽  
Enterprise Innovation ◽  
The Relationship

PurposeIntangible resources (IRs) play an important role in enterprise innovation; previous studies find inconsistent results (positive and negative). The authors develop and test a framework to analyze IRs to see whether and how to impact firm innovation performance to reconcile the conflicting results.Design/methodology/approachThis study empirically examined the curvilinear effect of IRs and innovation performance (IP) based on data from the Annual Census of Chinese Industrial Enterprises. The moderating effect of institutional development (ID) and state ownership (SO) in the relationship between firms' IRs and IP was also examined.FindingsIt was found that there is a U-shaped relationship between IRs and IP. Moreover, the institutional development weakens the U-shaped relationship.Originality/valueThe U-shaped relationship explains the inconsistent results in previous studies. It offers some important implications for managers and policymakers, who must understand the role of IRs.

scholarly journals STATE OWNERSHIP AND INNOVATION: THE RELATIVE MERITS OF LOCAL AND CENTRAL STATE JUDGED BY INNOVATION PERFORMANCE

2020 ◽  
pp. 2150026
Author(s):  
JING CAI ◽  
RADOMIR TYLECOTE ◽  
IGNACIO CANALES ◽  
TAKAHIKO KISO
Keyword(s):  
State Ownership ◽  
Innovation Performance ◽  
Solar Photovoltaic ◽  
Central State ◽  
Patent Counts ◽  
Two Measures ◽  
Innovation Quality ◽  
Privately Owned ◽  
Forward Citations ◽  
Different Levels

This paper compares the innovation performance of state-owned firms owned by different levels of government, with that of privately owned firms. Analysis of a 116-firm panel dataset for the Chinese solar photovoltaic industry from 1999 to 2015 suggests that government’s financial support increases the quantity of innovation outputs. However, the efficiency in utilising the financial resources is determined by the effectiveness of agency relationships. Applying agency theory to the Chinese politico-economic context indicates that innovation quality depends on length and complexity of agency chains, engagement of monitors, and the tenure of managers. By using forward citations and proportion of patents in active use, two measures of innovation quality that are more valid and reliable than patent counts, our study finds that municipally owned firms are superior in terms of innovation productivity to those under central ownership, and comparable to private firms.

Cultura organizacional y desempeño innovador en cuatro sectores productivos

Oikos ◽  
2015 ◽  
Vol 15 (31) ◽  
pp. 61
Author(s):  
Rafael G. Ricardo Bray ◽  
Ignacio Gómez Roldán
Keyword(s):  
Organizational Culture ◽  
Organizational Performance ◽  
Innovation Performance ◽  
The Other ◽  
Economic Sector ◽  
Economic Sectors ◽  
Other Hand

RESUMENPara un conjunto de ciento cuarenta y una organizaciones colombianas (95% bogotanas) clasificadas bajo la nomenclatura CIIU pertenecientes a 4 sectores económicos, se estimó el perfil de cultura organizacional de cada una a partir de la aplicación del Organizational Culture Survey (DOCS) de Daniel Denison y asociados. Las organizaciones bogotanas del estudio presentan unos perfiles culturales muy similares, no obstante pertenecer a diferentes sectores económicos. Por otro lado, las relaciones existentes entre las diferentes variables de cultura organizacional y el desempeño innovador difieren entre sectores económicos.Palabras clave: perfil de cultura organizacional, encuesta Denison de cultura organizacional, sector Económico, desempeño organizacional, innovación. Organizational culture and innovation performance in four different sectorsABSTRACTFor a sample of one hundred forty one Colombian organizations (95% located in Bogotá) classified under the CIIU ranking, the organizational culture profile of each one was estimated using the Organizational Culture Survey (DOCS) of Daniel Denison and associates. The organizations studied show very similar cultural profiles, although they belong to different economic sectors. On the other hand, the relationships existing between the different variables of organizational culture and innovation performance differ among economic sectors.Keywords: organizational culture profile, Denison organizational culture survey (DOCS), economic sector, organizational performance, innovation.

Syed Nawab Haider Naqvi, Mahmood Hasan Khan and M. Ghaffu Otaudhry (edt.). LaJld Reforms in Pakistan, A Historical Perspective. Islamabad: Pakistan Institute of Development Economics 1987. viii+216 pp.Price: Rs 220 (USS 35) for hardcover; Rs 140.00 (USS 20) for soft-cover.

1988 ◽  
Vol 27 (2) ◽  
pp. 217-218
Author(s):  
Luther Tweeten
Keyword(s):  
Land Tenure ◽  
Land Reform ◽  
State Ownership ◽  
Land Reforms ◽  
Policy Makers ◽  
Rural Pakistan ◽  
The Status ◽  
Land Tenure System ◽  
Ownership Of Land ◽  
High Degree

The authors describe how Pakistan has grappled with land reform, surely one of the most intractable and divisive issues facing agriculture anywhere. The land-tenure system at independence in 1947 included a high degree of land ownership concentration, absentee landlordism, insecurity of tenant tenure, and excessive rent. Land reform since 1947 focused on imposition of ceilings on landholding, distribution of land to landless tenants and small owners, and readjustments of contracts to improve the position of the tenant. These reformist measures have removed some but by no means all of the undesirable characteristics of the system. The authors list as well as present a critique of the reports of five official committees and commissions on land reform. The reports highlight the conflicts and ideologies of the reformers. The predominant ideal of the land reformers is a system of peasant proprietorship although some reformers favoured other systems such as communal farming and state ownership of land, and still others favoured cash rents over share rents. More pragmatic reformers recognized that tenancy is likely to be with Pakistan for the foreseeable future and that the batai (sharecropping) arrangement is the most workable system. According to the editors, the batai system can work to the advantage of landlord and tenant if the ceilings on landholding can be sufficiently lowered (and enforced), the security of the tenant is ensured, and the tenant has recourse to the courts for adjudication of disputes with landlords. Many policy-makers in Pakistan have come to accept that position but intervention by the State to realize the ideal has been slow. The editors conclude that" ... the end result of these land reforms is that they have not succeeded in significantly changing the status quo in rural Pakistan" (p. 29).

Sign in / Sign up

Export Citation Format

Share Document