The Influence Of Parent Enterprise Innovation Attention On Subsidiary Performance

Enterprise groups are a powerful driving force for economic development.Against the background of increasingly fierce competition and deteriorating market environment,it is particularly urgent and important to explore how to improve the management efficiency of parent and subsidiary corporations,and to clarify how can parent corporations better assume the role of core leaders and effectively promote the performance of subsidiaries and long-term development.Innovation is an important link in corporations that has a far-reaching impact on performance.The senior managers in corporations have decision-making power on the development strategy and business planning of parent corporations and even subsidiary corporations.In the era of knowledge explosion and information explosion,senior managers in parent corporations concentrate their limited efforts on innovative work,thus causing that the internal mechanism of performance improvement of subsidiaries remains to be explored.In addition,given the rapid changes and complexity of the current domestic and international situation,enterprises at different development stages face different opportunities and problems.Therefore,the internal mechanism of the single large sample unified study can no longer meet the next demand of theory and practice,and the research depth should be expanded on this basis to draw a more comprehensive and detailed conclusion from the difference comparison.Based on attention-basic view and enterprise life cycle theory,this paper takes the listed subsidiary enterprises and their parent enterprises in manufacturing industry from 2015 to 2017 in China as the samples,combines theories of multiple regression and text analysis,explores the process and results of parent corporations' innovation attention on subsidiary corporations' performance.Meanwhile,this study divides the total sample into three sub-samples: growth period,maturity period and recession period according to the life cycle of subsidiaries.Further,this paper studies the process and results of parent corporations' innovation attention on subsidiary corporations' performance in different life cycles.The results are shown as follows.(1)the innovation attention of parent enterprises has a positive influence on the performance of subsidiary enterprises.(2)the innovation attention of parent enterprises has a positive influence on the R&D investment of subsidiary enterprises.(3)the R&D investment of subsidiary enterprises has a positive influence on their lagging performance.(4)the R&D investment of subsidiary enterprises play intermediary role in the process of parent corporations' innovation attention affecting subsidiary corporations' performance.(5)the autonomy of subsidiary enterprises has a negative moderating effect on the relationship between the innovation attention of parent enterprises and the R&D investment of subsidiary enterprises.(6)The above-mentioned results indeed have differences in different life cycles of the subsidiary enterprises.When subsidiaries are in the growth stage,their autonomy does not negatively regulate the relationship between parent corporations' innovation attention and the research and development investment of subsidiaries.When subsidiaries are in recession,the research and development investment of subsidiaries can not positively affect the lagging performance of the first stage significantly,nor can the research and development investment of subsidiaries play intermediary role in the process of parent corporations' innovation attention affecting the performance of subsidiaries.This paper examines the impact of parent corporations on the performance of subsidiary corporations from the perspective of innovation attention.On the one hand,by introducing the intermediary variable the research and development investment of subsidiaries and the moderator variable the autonomy of subsidiaries,this paper reveals how the internal mechanism of parent corporations' innovation attention affects subsidiary corporations' performance,which enriches relevant researches and is a useful supplement to related fields.On the other hand,this paper adopts the classification of corporation life cycle in industrial economics in combination with corporate life-cycle theory and further studies separately after dividing the total sample into three sub-samples: growth period,maturity period and recession period.It aims to find the differences of research conclusion between the total sample and sub-sample,sub-sample and sub-sample so as to provide more detailed guidance for parent-subsidiary corporation management practice and help parent corporations achieve better results in actual management operation.