Study On The Relationship Between Supply Chain Concentration And The Enterprise Innovation Performance

Innovation is an important source to enhance the core competitiveness of enterprises, providing a steady stream of power for the development of enterprises. At present, China’s manufacturing enterprise’s innovation level is not high, and need to enhance the ability of innovation urgently. How to effectively use external heterogeneous resources to enterprise’s innovation become one of the most concern. Supply chain concentration reflects the degree of heterogeneity of resources of the core enterprise’s suppliers and customers. Suppliers’ and customers’ heterogeneous resources laid the basis for enterprise innovation, provide potential driving force to enterprise innovation. Therefore, it is necessary to study on the relationship between supply chain concentration and enterprise’s innovative performance.Previous scholars study enterprise’s innovation performance from the perspective of supply chain.They always use empirical method of questionnaire to explore relationship between supply chain partnerships, suppliers and customers to participate in the relationship between innovation and enterprise’s innovation performance, and less concerned about the relationship between supply chain concentration and enterprise’s innovation performance. In this paper, I use empirical analysis of secondary data to study on three main elements, which include the relationship between supply chain concentration and enterprise’s innovative performance, the moderating of ownership concentration, and the relationship between innovation performance and enterprise’s financial performance.In this paper, I use the data of electronic industry listing corporation and mechanical equipment instrument industry listing corporation and Bio pharmaceutical industry listing Corporation, build multiple linear regression model and negative binomial regression model to test hypotheses, and using statistical sofeware stata11.0 to analysis results. The empirical results show that:(1) verified the significant negative effect of supply concentration and customer concentration on the enterprise’s innovative performance. The lower supply chain concentration, the richer heterogeneous resources of the suppliers and customers, The better enterprise’s innovation performance.(2) The ownership concentration positively moderate the relationship between supplier concentration and enterprise’s innovative performance, but did not play a significant positive regulatory role on the relationship between customer concentration and enterprise’s innovative performance. When the corporate’s ownership is Centralized, based on the principal-agent theory, on the one hand shareholders can encourage operators to innovate and absorb the suppliers’ heterogeneous resources to drive business innovation. On the other hand, the shareholders can effectively monitor and control operators, improving internal management, coordinating suppliers’ heterogeneous resources, to enhance their ability to innovate.(3) A significant positive correlation between innovation and financial performance. The better innovative performance, the better financial performance. The innovation input and innovation output can help technological innovation to reduce operating costs, help companies to develop new products and expand its market share to increase corporate profits. The results of this study aim to provide empirical guidance to adjust supply chain concentration and ownership concentration for enterprises, which can help them to gain suppliers’ and customers’ heterogeneous resource effectively. At the same time, It also enriched empirical research of secondary data in the field of supply chain management.