The bright and dark sides of institutional intermediaries: industry associations and small-firm innovation

Yao, N.; Guo, Q.; Tsinopoulos, C.

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.

Citation

Yao, N., Guo, Q., & Tsinopoulos, C. (2022). The bright and dark sides of institutional intermediaries: industry associations and small-firm innovation. Research Policy, 51(1), Article 104370. https://doi.org/10.1016/j.respol.2021.104370

• Journal Article Type: Article
• Acceptance Date: Sep 9, 2021
• Online Publication Date: Oct 23, 2021
• Publication Date: 2022-01
• Deposit Date: Sep 9, 2021
• Publicly Available Date: Apr 23, 2023
• Journal: Research Policy
• Print ISSN: 0048-7333
• Electronic ISSN: 1873-7625
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 51
• Issue: 1
• Article Number: 104370
• DOI: https://doi.org/10.1016/j.respol.2021.104370
• Public URL: https://durham-repository.worktribe.com/output/1241835