Research On The Impact Of Headquarter Involvement In Innovation

Business groups play an important role in emerging market.Compared with individual enterprises,subsidiaries belonging to business groups are more important innovation subjects.However,the existing literature on the issues of subsidiaries'innovation is relatively less than that of individual enterprises,which makes the researches on innovation of subsidiaries become more and more urgent.Based on this,this study takes subsidiaries as the research objects and discusses the innovation of subsidiaries from the perspective of resource-based view under the framework of parent-subsidiary companies.In the practice of subsidiary innovation,the parent companies often get involved in the innovation process of the subsidiaries.However,there is no consensus on the conclusions of the existing literature on the involvement of parent companies in innovation activities of subsidiaries.To be specific,from the perspective of the bounded rationality of parent companies,the positive effects of the parent companies'involvement can be grasped.Moreover,it is believed that the parent companies'involvement can influence the innovation process of the subsidiaries through direct participation and indirect control mechanism,which can help subsidiaries overcome the influence of such conditions as insufficient capacity,resource constraints and legal constraints.While the parent company sheer ignorance perspective focuses on the negative impact of the parent companies innovation involvement,pointing out that the parent companies' involvement may bring problems and obstacles to the subsidiaries'innovations.Based on this,this paper divides the parent company's innovation involvement into two types:innovation development involvement and innovation transfer involvement respectively.And we attempt to explore their heterogeneous influences on the innovation performance and dynamic innovation ability of the subsidiaries,and consider the moderating effect of knowledge characteristics.Based on the perspective of resource-based perspective(RBV)and the logic of parenting advantages,the research found that:(1)Parent companies involvement in innovation development and transfer both promote subsidiaries'innovation performance;(2)Knowledge complexity negatively moderate the positive relationship between parent companies involvement in innovation transfer and subsidiaries' innovation performance,and positive moderate the relationship between parent companies involvement in innovation development and innovation performance.Knowledge sharing will enhance parent companies involvement in innovation transfer on subsidiaries?innovation performance;(3)Parent companies involvement in innovation development can promote dynamic innovation capability of subsidiaries,while parent companies involvement in innovation transfer cannot effectively improve the dynamic ability;The research enriched the connotation of the parenting advantages,and provided theoretical support for the practical development of business groups.The main innovations of this paper are as follows:Firstly,it breaks through the assumption that the innovation involvement of the parent company is taken as a single variable in previous studies,and differentiates the two innovation involvement modes which are innovation development involvement and innovation transfer involvement.Moreover,we distinguish the different influences of the two on innovation perfonnance,and develops the related research on the leading factors of the innovation performance of the subsidiaries.Second,from the perspective of resource-based view,based on the process of value creation and value occupation,this paper studies the influence of innovation involvement on short-term performance and dynamic innovation capability that on behalf of its long-term environmental adaptability,which makes up the previous research that failed to discuss the influence of innovation involvement from the systematic perspective.And it also enriches the literature of parenting advantage.Finally,we explore the different influences of innovation involvement on dynamic innovation capability of subsidiaries,and proved that the parent company involved in the process of innovation development of subsidiaries can promote the dynamic innovation capability while involvement in innovation transfer can't develop dynamic innovation capability.Concretely speaking,the parent company's specific innovative involvement should be fit with the specific situation,so as to give full play to the parenting advantage.