Equity Incentive,Environmental Uncertainty And Enterprise Ambidextrous Innovation

As a new engine for China’s economic growth and a driving force for the long-term development of enterprises,innovation is not only required to increase the number of innovations,but also to optimize the innovation model.Since the integration of organizational ambidextrous theory and innovation management and further derived the concept of "ambidextrous innovation",many scholars have begun to examine the innovation problem from the ambidextrous perspective,believing that the sequential implementation of ambidextrous innovation is not only the basic path of innovation development,but also the cornerstone to maintain the competitive advantage of enterprises.Besides discussing how innovation drives development,we also need to think about what drives innovation?Incentive mechanism is one of the key factors affecting enterprise innovation,and the "long-term nature" of equity incentive endows it with unique value in innovation incentive mechanism,making it become a "powerful agent" to stimulate the enthusiasm of managers and employees for innovation and improve the level of ambidextrous innovation.The reasonable selection and distribution of the object of equity incentive is the guarantee of the validity of the incentive contract.In practice,enterprises also have different preferences for executive equity incentive and core employee equity incentive.In addition,external environment and uncertain factors may also have an important impact on innovation strategy decision and implementation,as well as incentive effectiveness.Therefore,based on the Context of China,what is the implementation effect of equity incentive for senior executives and core employees? What role does environmental uncertainty play in the study of equity incentive innovation effect? Do heterogeneous characteristics of firms have differentiated effects? Can ambidextrous innovation finally contribute to positive economic consequences?Based on this,this paper incorporates ambidextrous innovation,equity incentive and environmental uncertainty into the research framework,and investigates the impact of equity incentive on ambidextrous innovation from the perspective of incentive objects.Firstly,this paper summarizes the organizational ambidextrous theory,agency theory,environmental uncertainty and other theoretical points of view,combs the relevant literatures at home and abroad,and carries out corresponding reviews.Secondly,this paper constructs a theoretical framework and proposes research hypotheses,including the impact of equity incentives and their combined effect on ambidextrous innovation,the moderating role of environmental dynamism and environmental richness in the process,and two extended analyses of firm heterogeneity and economic consequences.Furthermore,the paper defines the samples and data sources required for the study,defined the relevant variables,builds a multiple regression model,and carries out empirical research by using SPSS and Stata statistical software to verify the basic assumptions and conduct extended analysis.Finally,the paper draws a conclusion based on the analysis results,puts forward management suggestions combined with enterprise practice,and points out the shortcomings and future research direction.According to the above ideas,as well as taking the data of A-share listed companies in China from 2006 to 2019 as samples,the research finds: first,there is an inverted u-shaped relationship between executive equity incentive and exploratory innovation,and there is a positive correlation between executive equity incentive and exploratory innovation;There is a significant positive correlation between core employee equity incentive and exploratory innovation and exploitative innovation.Equity incentive of senior executives and core employees has joint and complementary effects,and both of them jointly improve the level of dual-innovation of enterprises.Secondly,environmental uncertainty plays a differential moderating role.Environmental dynamics plays a negative moderating role in the relationship between equity incentive and dual innovation,which reflects the environmental "inhibition" theory.While,environmental richness has a positive moderating effect on the relationship,which reflects the environmental "facilitation" theory.Thirdly,heterogeneity analysis shows that the effectiveness of executive equity incentive and core employee equity incentive varies with the nature of enterprise property rights,industry nature and life cycle.Fourthly,ambidextrous innovation has value creation effect,which can significantly improve short-term financial performance and long-term competitive advantage of enterprises.However,exploratory and exploitative innovation activities create value in different ways.In view of the research conclusions,this paper puts forward the following management suggestions: at the enterprise level,firstly,design a reasonable and effective incentive scheme by combining the incentive object and the heterogeneous characteristics of the enterprise to maximize the innovation effect of equity incentive;Second,correctly identify the uncertainties contained in the objective environment,and effectively use and manage the positive and negative impacts of the external environment;Third,build a good corporate governance system,actively cultivate internal innovation elements,and drive the improvement of enterprise innovation level and long-term development from various aspects.At the government level,accelerate the improvement of equity incentive and supporting policies to provide institutional guarantee for the practice of equity incentive;Second,continue to stabilize the economy and deepen reform to create a stable and active external macro environment for enterprise innovation.Third,promote supportive policies,pool resources of innovation factors,as well as build a strong science and technology engine for sustainable development.The innovation of this paper lies in: first,the research perspective is novel.This paper analyzes the innovation activities of enterprises from the ambidextrous perspective,discusses the impact of equity incentive and its combined effect on the ambidextrous innovation by differentiating the incentive object,expanding the research perspective on the innovation effect of equity incentive.Second,the research content is comprehensive.Following the logic of "environment-behavior-consequences",this paper takes the external context and internal characteristics of firms into the research framework,analyzes the moderating effect and heterogeneity of environmental uncertainty,and examines the economic consequences of dual innovation activities.Third,research methods are various.Multiple regression was the main method,supplemented by literature research method,comparative analysis method and generalized propensity score matching method,which attempted to present the research results as accurately as possible while systematically sorting out the research dynamics and elaborating the research content,so as to ensure the robustness and reliability of the conclusions.