Suppliers And Private SMEs Innovation

Innovative development is the driving force of China’s economic structure transformation and high-quality development.Knowledge innovation is the essence of innovation.Private SMEs(small&medium enterprises)are an important part of the market economy,limited by their own innovation resources,they need to use external innovation resources to improve their innovation ability.Suppliers are an important source of external knowledge for enterprise innovation.It is of great significance to study the influence of supplier knowledge on innovation of private SMEs to promote private SMEs’ innovations and improve the market competitiveness.Based on the panel data of private listed companies on SMEs board from 2012 to 2017,this paper studies the influence of different types of supplier knowledge on the innovation of private SMEs.The results showed that:(1)Supplier technology improvement can promote the innovation of private SMEs.Supplier technology breakthrough has a restraining effect on the innovation of private SMEs.(2)Absorptive capacity can promote the innovation of private SMEs.Supplier technology improvement is adverse to improving absorption capacity.Technological breakthroughs of suppliers are conducive to improving absorptive capacity.Further research shows that absorptive capacity has a hiding effect between the two different types of supplier knowledge and the innovation of private SMEs.In other words,the impact of suppliers’ technological improvement and technological breakthrough on the innovation of private SMEs is partially covered when it is transmitted through absorptive capacity.(3)Executive compensation weakens the positive impact of supplier technology improvement on innovation of private SMEs,and also weakens the negative impact of supplier technology breakthrough on innovation of private SMEs.With the increase of executive compensation,the positive impact of supplier technology improvement on the innovation of private SMEs gradually weakens and eventually reverses.When the executive compensation is low,the technological breakthrough of suppliers is negatively correlated with the innovation of private SMEs.When the executive compensation is high,the technological breakthrough of suppliers is positively correlated with the innovation of private SMEs.(4)Government subsidies strengthen the positive impact of supplier technology improvement on the innovation of private SMEs,and also strengthen the negative impact of supplier technology breakthrough on the innovation of private SMEs.With the increase of government subsidies,the greater the promotion effect of suppliers’technological improvement on the innovation of private SMEs is,and the greater the inhibitory effect of suppliers’ technological breakthrough on the innovation of private SMEs is.From the perspective of knowledge-based view,the research conclusion provides the experience basis for the private SMEs to use supplier knowledge innovation,and provides some reference for the establishment of enterprise incentive system and government policy.