Threshold effect of corporate innovation on the financial performance of the electronic equipment manufacturing industry

ABSTRACT

This study investigates the threshold effect of R&D behaviour on financial performance by using the Chinese electronic equipment manufacturing industry as the sample. Results in this study reveal the co-effect of innovation input (R&D) and output (patents) on corporate financial performance, while patent output has a threshold effect that allows financial performance to be enhanced via R&D input, and the relationship between patent output and financial performance changes significantly when R&D input is used as a threshold.

KEYWORDS:

• R&D input
• patent output
• financial performance
• threshold effect

Acknowledgements

The researchers would like to express their gratitude to the editor and the anonymous reviewers for their efforts to improve the quality of this article.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Yue Zhang

Yue Zhang is a master's student at the School of Economics and Management, Shanghai Institute of Technology, with an emphasis on technology innovation management and knowledge management, and has published 1 JCR Zone 2 sci papers. E-mail: [email protected]

Ziwei Xiang

Ziwei Xiang is a PhD student in the Business School, University of Shanghai for Science and Technology. His research interests are corporate management strategy, including corporate technological innovation, corporate sustainable development and corporate digital transformation, and he has published two JCR Zone 1 ssci papers and two JCR Zone 2 ssci papers. E-mail: [email protected]