The Empirical Study On The Relationship Between Governance Structure And Technologic Innovation Capability Of High-tech Firms

The 21st century is the times of knowledge economy. Firms must possess strong core competency to gain competitive edge in the market. And technologic innovation capability (TIC) is the source of the firms'core competency. For the high-tech firms, once brand-new high-tech products had been well received by the market, the demand would rapidly rise and bring good benefit, and good benefit would consequently speed up the innovation process. The TIC is accordingly extremely important to the high-tech firms. However, China high-tech firms are usually small by size, have short lifetime and low TIC This paper first analyzes the corporate governance characteristics of high-tech firms, and investigates the influence of governance structure of high-tech firms by empirical method in an effort to reveal the causes that lead to low TIC within the framework of governance structure.Survey method is applied in this paper to gain the related data about the governance structure and TIC of China high-tech firms. Through pilot study and formal survey, the structural equation model about governance structure and TIC of high-tech firms is established. Next, the data of formal questionnaires is used for the analysis of Structural Equation Modeling. And Amos6.0 is used to validate the hypotheses model presented in the paper. The result shows that some items of governance structure of high-tech firms have significant effect on the TIC. Besides, the analysis shows that state ownership and ownership concentration of high-tech firms have no remarkable effect on the TIC. Then possible reasons are analyzed and relevant policy proposals are presented for the governance of high-tech firms.During the research process of the effect of governance structure on TIC of high-tech firms, there are mainly the following innovations in this paper. Firstly, this paper proves that the governance structure of high-tech firms especially the directors'abilities has significant effect on TIC during the governance process of the small and medium high-tech firms. Secondly, different from the econometrics method applied by most scholars to do research on innovation capabilities, this paper applies the method of structural equation modeling to analyze the effect of governance structure on TIC of high-tech firms. The reliability of the results can be strengthened by using the comparatively more comprehensive index system.Another contribution of this paper is that it establishes the index systems about technologic innovation capability and governance structure of high-tech firms which have pioneering meanings for the future study.