Management Power, R&D and Enterprise Performance: Moderating Effect Based on Management Competence

Abstract

Purpose - This paper studies the relationship between management power, R&D and enterprise performance by selecting A-share listed companies in Shenzhen and Shanghai from 2007 to 2016. Design/methodology/approach - OLS regression Findings - The results show that management power is positively correlated with enterprise performance. There is a significant positive correlation between management power and R&D. That is, the more power the management has, the more likely it is to invest in venture capital and the more decision-making power it has, and the more attention it pays to achieve long-term development through R&D and innovation. R&D has a partially mediating effect between management power and enterprise performance. In addition, this paper also verifies that since R&D still has an impact on firm performance in the subsequent period, this mediating effect still holds in the subsequent period. Management ability has a positive moderating effect on the mediating effect of management power on firm performance through R&D. The moderating path is the first half of the mediating effect, that is, the stronger the management ability is, the more attention the management with power attaches to improving enterprise performance through increasing R&D. Originality/value - This article confirms that management power is positively correlated with enterprise performance.