Paper Title
EXAMINING THE INFLUENCE OF MANAGERIAL POWER AND DIRECTOR BACKGROUND ON INNOVATION IN CHINESE STATE- OWNED ENTERPRISE

Abstract
Abstract - This study aims to conduct a comprehensive analysis of the intricate interplay between internal and external influences on innovation activities within Chinese state-controlled enterprises. This study examines the influence of managerial power and director backgrounds on innovation in Chinese state-owned enterprises (SOEs). Drawing from agency and institutional theories, we emphasize the intricate interplay between internal and external impacts, and innovation strategies in China's transitioning economy. Using a dataset of 808 SOEsin mainland China from 2012 to 2021, we employ fixed effect model regression analysis alongside a comprehensive literature review. Worthily, categorizing firms into two samples based on industry affiliation— one comprising a diverse range of sectors and the other exclusively focused on manufacturing—we provide insights into their innovation behavior. The results reveal that managerial power negatively affects R&D investment, while top management with overseas backgrounds positively impacts it. We also explore the unique characteristics of Chinese SOEs and the role of governmental R&D subsidy in shaping their innovation strategies. Our findings provide valuable insights for policymakers and managers aiming to enhance innovation performance within Chinese SOEs. By offering a nuanced understanding of the internal determinants and external influences on innovation behavior, this study contributes to the literature on innovation in state-owned enterprises. The research outcomes of this study provide a comprehensive understanding of the interplay between managerial power, management background, and government support on the innovation activities of Chinese enterprises. The future scope of this study involves exploring the potential introduction of external independent directors and redirecting resources judiciously to heighten the proclivity for risk-taking in investments, subsequently instilling the confidence needed to augment research and development outlays. Keywords - State-Owned Enterprises.Innovation.Top Management.Governmental Support.China