R&D Investment Intensity,Organizational Slack And Company Growth

Company management is becoming more and more diversified with the increasingly fierce market competition.Technology innovation become a driving force to promote the development of company,at the same time technology innovation is playing an increasingly important role in company competitiveness and business growth.Whether the company is engaged in business or investment activities,corresponding resource is needed support it,especially in technological innovation activities that are fraught with uncertainty and risk.Because of the high risk,overflow and information asymmetry of R&D innovation activities,it is difficult for companies to conduct external financing,organizational slack can be used as sources for innovative activities.It is necessary to transform and utilize internal organizationl slack to support innovative activities in the case of limited external resources for private small companies.In response to the threat and pressure of market competition to the company,the management of the company will strive to improve the efficiency of existing resources,exert the potential and value of resources,to prevent the company from being in a competitive position.Therefore,this paper clarified the role of organizational slack in R&D input intensity and company growth,to urge companies to deploy redundant resources in important R&D activities,to improve company growth.Based on China’s SME board listed companies from 2012 to 2016,this paper examined the relationship between R&D input intensity and company growth,and the moderating role of organizational slack.The study found that:(1)The higher the company’s R&D investment,the stronger the growth of the company,this impact is stronger in private companies.(2)R&D investment has a lagging effect,the current R&D input significantly promotes the growth of the next phase.This lag effect is more significant in the state-owned companies.(3)There is a significant positive correlation between R&D intensity and the growth of the company at different levels of growth.This positive correlation is more significant with the increase of growth level.(4)Generally speaking,a moderate amount of LD-slack will positively regulate the relationship between R&D input intensity and company growth,but excessive LD-slack will negatively regulate the relationship.(4)HD-slack positively regulates the positive relationship between R&D input intensity and company growth,especially in private company.This paper enriches the research of R&D input intensity,organizational slack and company growth.It should be done from the company side(1)The R&D investment of SME companies should be improved,and the R&D investment of the company should be fully emphasized.The R&D investment has lagged behind the growth of the company’s promotion,companies should not be anxious,should ensure adequate investment sustained development.(2)SME companies should make full use of the company’s internal organizational slack,optimize the company’s internal resource structure,and pay attention to the impact of organizational slack on R&D and growth.It should be done from the government side(1)Increase the government’s support for SME companies so that SMEs can gain more external funds to promote their R&D investment and growth.(2)Conscientiously implement the policy spirit of the State Council,accelerate the cultivation of the base of technological innovation and industrialization.(3)Encourage excellent graduates to go to the SME companies to give full play to their excellent talents.