The bright and dark sides of institutional intermediaries: Industry associations and small-firm innovation |
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| Institution: | 1. Durham University Business School, Ustinov College, Millhill Ln, Durham DH1 3LB, Durham, United Kingdom;2. College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, 211106, China;3. Durham University Business School, Millhill Ln, Durham DH1 3LB, Durham, United Kingdom;1. Henley Business School, University of Reading, UK;2. Department of Economics, Society, Politics, University of Urbino, Italy;3. Gran Sasso Science Institute, Italy;4. Department of Economics, Society, Politics, University of Urbino, Italy;5. Department of Economics, University of Perugia, Italy;1. Univ. Bordeaux, CNRS, BSE, UMR 6060, Pessac F-33600, France;2. SKEMA Business School, Université Côte d''Azur (GREDEG), Sophia-Antipolis, France;3. Université Côte d''Azur, CNRS, GREDEG, France;1. Department of Innovation, Entrepreneurship and Investment, School of Management, Zhejiang University of Technology, Hangzhou, Zhejiang, China;2. School of Business and Economics, Vrije Universiteit 1081 HV Amsterdam, Amsterdam, The Netherlands;3. Faculty of Law, Economics and Governance, Utrecht University, 3512 BK Utrecht, The Netherlands;4. Institute for Intellectual Property Management, School of Management, Zijingang Campus, Zhejiang University, Yuhangtang Road 866, Hangzhou, Zhejiang, China;1. University of Bergamo, Via dei Caniana, 2, 24127, Bergamo, Italy;2. Bordeaux School of Economics, University of Bordeaux, CNRS, Avenue Léon Duguit, 33608, Pessac, France;3. AQR-IREA Research Group, University of Barcelona, Avinguda Diagonal, 690, 08034, Barcelona, Spain;1. Queen''s Management School, Queen''s University Belfast, Riddel Hall, 185 Stranmillis Road, Belfast BT9 5EE, Northern Ireland;2. Monash Business School, Monash University, 900 Dandenong Road (N7.32), Caulfield East, VIC 3145, Australia;3. Henley Business School, University of Reading. Greenlands, Henley-on-Thames RG9 3AU, United Kingdom |
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| Abstract: | Institutional intermediaries are often seen by governments as avenues for increasing firm level innovativeness. This is because they can provide both information and legitimacy, which enable access to government support. Yet, close engagement with intermediaries may also encourage political intervention, especially in the context of emerging markets. Using a unique dataset which consists of the Chinese Micro- and Small- Enterprise Survey (CMES) and the National Economic Research Institute (NERI), we explore the roles of government support and political intervention in the relationship between institutional linkages and firm innovativeness. We find that government support, in the form of tax benefits, and political intervention mediate the relationship between institutional linkages and firm innovativeness. We also find that this relationship is contingent upon the degree of institutional development within which firms operate. Our findings therefore contribute to the burgeoning literature that examines the effects of institutional intermediaries on innovation by exploring both their bright and dark sides. We discuss the implications of these findings for institutional intermediary research, institutional theory and innovation literature and offer advice to policymakers and managers looking at improving innovativeness. |
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| Keywords: | Political intervention |
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