Political genes drive innovation: Political endorsements and low-quality innovation

Yanyu Wang, Qinghua You and Yuanbo Qiao

Structural Change and Economic Dynamics, 2022, vol. 60, issue C, 407-417

Abstract: Drawing on institutional theory and resource dependent theory, this study proposed that political endorsement of a firm, playing as political genes, restrains it from pursuing the low-quality innovation. Using data on 2406 Chinese listed companies spanning from 2008 to 2016, we find that the political endorsement significantly inhibits low-quality innovation. That inhibition is stronger among firms with more slack resources and weaker in provinces with greater market liberalization. Our findings provide contributions on the low-quality innovation from political perspective, and benefit for the innovation implications.

Keywords: Political endorsement; Low-quality innovation; Legitimacy; Resource dependence theory; Slack resources; Market liberalization; China (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:60:y:2022:i:c:p:407-417

DOI: 10.1016/j.strueco.2021.12.009

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