Analyzing the impact of the innovation performance on high-tech enterprises: a case study of the Chinese semiconductor industry

    Feng Yin Affiliation
    ; Woonseek Lee Affiliation
    ; Yaoyao Guo Affiliation


This study, which focuses on Chinese semiconductor companies, explores the relationship between government support (GS), proactive market orientation (PMO), science and technology (S&T) employees input (STEI), S&T employees management (STEM), and innovation performance (IP). In addition, existing studies examine the moderating effect of S&T employees management (STEM) on the relationship between S&T employees input (STEI) and innovation performance (IP). We obtained 324 valid samples through an email survey and utilized structural equation modeling (SEM) path analysis for hypothesis testing. The results of the analysis indicated that government support (GS), proactive market orientation (PMO), S&T employees input (STEI), and S&T employees management (STEM) exerted a positively significant effect on innovation performance. However, the moderating effect of S&T employees management on S&T employees input and innovation performance was not validated. Based on these findings, it can be concluded that Chinese semiconductor companies should utilize preferential policies of government offer. By adopting a proactive market orientation, companies can enhance communication with customers and can gain competitive advantage. In addition, enterprises should increase the number of S&T employees, and salaries and training costs. Finally, enterprises should implement the human resources strategy which can retain outstanding S&T employees.

Keyword : government support, proactive market orientation, S&T employees input, S&T employees management, innovation performance, Chinese semiconductor industry

How to Cite
Yin, F., Lee, W., & Guo, Y. (2024). Analyzing the impact of the innovation performance on high-tech enterprises: a case study of the Chinese semiconductor industry. Journal of Business Economics and Management, 25(2), 356–376.
Published in Issue
Apr 29, 2024
Abstract Views
PDF Downloads
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.


Abbu, H. R., & Gopalakrishna, P. (2021). Synergistic effects of market orientation implementation and internalization on firm performance: Direct marketing service provider industry. Journal of Business Research, 74(125), 851–863.

Aghion, P. (2016, January). Competitiveness and growth policy design [Conference presentation]. Moving to the Innovation Frontier workshop, Vienna, Austria.

Ballot, G., Fakhfakh, F., & Taymaz, E. (2001). Firms’ human capital, R&D and performance: A study on French and Swedish firms. Labour Economics, 8(4), 443–462.

Beason, R., & Weinstein, D. E. (1996). Growth, economies of scale, and targeting in Japan (1955–1990). The Review of Economics and Statistics, 77(2), 286–295.

Becker, G. S. (1993). Human capital: A theoretical and empirical analysis, with special reference to education (3rd ed.). University of Chicago Press.

Capozza, C., & Divella, M. (2019). Human capital and firms’ innovation: Evidence from emerging economies. Economics of Innovation and New Technology, 28(7), 741–757.

Carlsson, B., & Staffan, J. (1994). Technological systems and economic policy: the diffusion of factory automation in Sweden. Research Policy, 23(3), 235–248.

Chen, K. Y., & Huan, T. C. (2022). Explore how SME family businesses of travel service industry use market knowledge for product innovation. Journal of Business Research, 75(151), 519–530.

Cohen, W. M., Nelson, R. R., & Walsh, J. P. (2002). Links and impacts: The influence of public research on industrial R&D. Management Science, 48(1), 1–23.

Diaz-Fernandez, M., Bornay-Barrachina, M., & Lopez-Cabrales, A. (2017). HRM practices and innovation performance: A panel-data approach. International Journal of Manpower, 38(3), 354–372.

Dosi, G. (1988). Sources, procedures, and microeconomic effects of innovation. Journal of Economic Lite­rature, 26(9), 1120–1171.

Edquist, C. (1997). Systems of innovation: Technologies, Institutions and Organizations (1st ed.). Routledge.

Laursen, K., & Foss, N. J. (2014). Human resource management practices and innovation. In Handbook of innovation management (pp. 505–529). Oxford University Press.

Freel, M. S. (2005). Patterns of innovation and skills in small firms. Technovation, 25(2), 123–134.

Gallié, E. P., & Legros, D. (2012). Firms’ human capital, R&D and innovation: A study on French firms. Empirical Economics, 43(2), 581–596.

Goedhuys, M., & Veugelers, R. (2012). Innovation strategies, process and product innovations and growth: Firm-level evidence from Brazil. Structural Change and Economic Dynamics, 23(4), 516–529.

Gomes, G., & Wojahn, R. M. (2017). Organizational learning capability, innovation and performance: Study in small and medium-sized enterprises (SMES). Revista de Administração (São Paulo), 52, 163–175.

Grant, R. M. (1996). Toward a knowledge‐based theory of the firm. Strategic Management Journal, 17(S2), 109–122.

Guan, J., & Yam, R. C. (2015). Effects of government financial incentives on firms’ innovation performance in China: Evidences from Beijing in the 1990s. Research Policy, 44(1), 273–282.

Hagedoorn, J., & Cloodt, M. (2003). Measuring innovative performance: Is there an advantage in using multiple indicators?. Research Policy, 32(8), 1365–1379.

Hall, B. H. (2002). The financing of research and development. Oxford Review of Economic Policy, 18(1), 35–51.

Holmstrom, B. (1989). Agency costs and innovation. Journal of Economic Behavior & Organization, 12(3), 305–327.

Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38(3), 635–672.

Khan, A., & Tao, M. (2022). Knowledge absorption capacity’s efficacy to enhance innovation performance through big data analytics and digital platform capability. Journal of Innovation & Knowledge, 7(3), Article 100201.

Kline, R. B. (1998). Structural equation modeling. Guilford Publications.

Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: The construct, research propositions, and managerial implications. Journal of Marketing, 54(2), 1–18.

Lazzarini, S. G. (2015). Strategizing by the government: Can industrial policy create firm‐level competitive advantage?. Strategic Management Journal, 36(1), 97–112.

Levine, D. I. (1992). Can wage increases pay for themselves? Tests with a productive function. The Economic Journal, 102(414), 1102–1115. https: //

Li, X., Guo, Y., Hou, J., & Liu, J. (2021). Human capital allocation and enterprise innovation performance: An example of China’s knowledge-intensive service industry. Research in International Business and Finance, 58(C), Article 101429.

Lundvall, B. Å. (1998). Why study national systems and national styles of innovation? Technology Analysis and Strategic Management, 10(4), 403–422.

Malerba, F. (2002). Sectoral systems of innovation and production. Research Policy, 31(2), 247–264.

Miller, S. M., & Upadhyay, M. P. (2000). The effects of openness, trade orientation, and human capital on total factor productivity. Journal of Development Economics, 63(2), 399–423.

Murphy, K. M., Shleifer, A., & Vishny, R. W. (1991). The allocation of talent: Implications for growth. The Quarterly Journal of Economics, 106(2), 503–530.

Narver, J. C., Slater, S. F., & MacLachlan, D. L. (2004). Responsive and proactive market orientation and new‐product success. Journal of Product Innovation Management, 21(5), 334–347.

Papa, A., Dezi, L., Gregori, G. L., Mueller, J., & Miglietta, N. (2020). Improving innovation performance through knowledge acquisition: The moderating role of employee retention and human resource management practices. Journal of Knowledge Management, 24(3), 589–605.

Qu, Y., & Mardani, A. (2023). Market orientation, technological opportunity, and new product innovation performance. Journal of Business Research, 162(C), Article 113841.

Shu, C., Zhou, K. Z., Xiao, Y., & Gao, S. (2016). How green management influences product innovation in China: The role of institutional benefits. Journal of Business Ethics, 133(3), 471–485.

Tjahjadi, B., Soewarno, N., Jermias, J., Hariyati, H., Fairuzi, A., & Anwar, D. N. (2022). Does engaging in global market orientation strategy affect HEIs’ performance? The mediating roles of intellectual capital readiness and open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(1), Article 29.

Wei, H., Chen, J., & Chudhery, M. A. Z. (2022). Examining intermediate mechanism of customer participatory market orientation on High-Tech firms’ innovation performance-secondary regulating effect of relationship quality. IEEE Transactions on Engineering Management, 71, 2036–2048.

Wei, J., & Liu, Y. (2015). Government support and firm innovation performance: Empirical analysis of 343 innovative enterprises in China. Chinese Management Studies, 9(1), 38–55.

Wei, Y., Nan, H., & Wei, G. (2020). The impact of employee welfare on innovation performance: Evidence from China’s manufacturing corporations. International Journal of Production Economics, 228, Article 107753.

Xu, K., Huang, K. F., & Xu, E. (2014). Giving fish or teaching to fish? An empirical study of the effects of government research and development policies. R&D Management, 44(5), 484–497.

Yi, J., Murphree, M., Meng, S., & Li, S. (2021). The more the merrier? Chinese government R&D subsidies, dependence, and firm innovation performance. Journal of Product Innovation Management, 38(2), 289–310.

Zúñiga‐Vicente, J. Á., Alonso‐Borrego, C., Forcadell, F. J., & Galán, J. I. (2014). Assessing the effect of public subsidies on firm R&D investment: A survey. Journal of Economic Surveys, 28(1), 36–67.