Research On The Impact Of Organizational Redundancy On Innovation Investment Of GEM High-tech Enterprise

As we all know,the company's R&D investment has a crucial impact on the country's economic development.The author finds that the R&D investment intensity of the high-tech enterprises in China's GEM in 2012-2017 is stable,but it has a slight decline,from 0.071 in 2012 to 0.067 in 2017.The R&D investment intensity is the ratio of the R&D expenditure to operating income,which represents a company's emphasis on innovation and development.However,the data shows that the R&D investment intensity of China's GEM high-tech enterprises has declined slightly,and according to the international standards proposed by the famous American management scholar Balkin(2000),51% of enterprises have not invested in R&D expenditures to meet the internationally required level of competitiveness.Therefore,under the background of a slight downward trend in R&D investment,it is the value of this paper to explore the influencing factors affecting the investment in high-tech R&D of the GEM and to reveal some mechanisms of this phenomenon.Both theory and practice show that the factors that determine the R&D investment of the company involve many aspects.Among them,there are many influencing factors at the enterprise level.Among these factors,there is an important factor that cannot be ignored.It is the organizational redundancy of enterprises.Organizational redundancy is defined as idle resources in the enterprise that are not maximized.In the statistics and analysis of the unabsorbed redundancy of the GEM high-tech enterprises from 2012 to 2017,this paper finds that the unabsorbed redundancy has shown a significant downward trend in recent years,from 6.4 in 2012 to 2.6 in 2017,and Overall decreased by 59.4%.Therefore,the author divides the redundant resources into two dimensions of absorbed redundancy and unabsorbed redundancy to test their impact on the R&D investment intensity of enterprises.In addition,in the process of collating data,the author also found that the variance of the unabsorbed redundancy of GEM companies reached 107 in 2013,indicating that there are large differences in the amount of unabsorbed redundancy between different enterprises,and indirectly reveals the executives as direct controllers of redundant resources,their attitudes and utilization of redundant resources are significantly different in decision-making.And executives' shareholding incentives are the reason for the difference in decision-making.To a certain extent,they also affect the innovation decisions of executives and thus affect the R&D investment of enterprises.Therefore,combined with the continuous decline in the shareholding ratio of GEM executives in recent years(from 22% in 2012 to 13% in 2017),this paper introduces executive stocks as a regulatory variable and explores its regulatory role between organizational redundancy and R&D investment.This paper focuses on the relationship between organizational redundancy and enterprise R&D investment,and adopts an empirical method.The selected sample is China's GEM high-tech enterprise from 2012 to 2017.The GEM is the gathering place of China's scientific and technological progress boosters and technical talents.It is also a group with great potential for innovation in China,which fully reflects the direction of economic transformation and upgrading.(Source: Eastern Fortune Network).The high-tech enterprises listed on the GEM are characterized by high growth and high-tech,and the intensity of their R&D investment determines the improvement of the overall level of science and technology in China.Therefore,exploring the relationship between the redundant resources of the GEM high-tech enterprises and the R&D investment can not only provide ideas for the enterprise to realize its long-term development,but also contribute to the improvement of the national innovation capability.After research,the empirical results obtained are as follows:(1)Both the absorbed redundancy and the unabsorbed redundancy have promoted the R&D investment of the enterprise,and the promotion effect of the absorbed redundancy is obviously stronger than the unabsorbed redundancy;(2)Executive shareholding incentives play a negative role in regulating organizational redundancy and R&D investment.The contributions of this paper are as follows: 1.Verifying the role of organizational redundancy in enterprise innovation,using data to illustrate the correctness of the theory of organization and resource-based theory on redundancy,refuting the negative views of agency theory and resource constraint theory;2,there are not many literatures on combining research on organizational redundancy,executive stock holding incentives and enterprise R&D investment.For example,there are only 7 articles in Zhinet,especially those who use GEM companies as research objects are even fewer.Therefore,this paper enriches the existing literature to a certain extent and lays a foundation for future related research;3,It confirms the negative adjustment effect of executive stock holdings between organizational redundancy and R&D investment,which is different from the research results of most scholars.The reason may be the management moral hazard and the optimal choice of redundant utilization direction.The analysis of the situation brings a new perspective to the research related to organizational redundancy and executive ownership.