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Entrepreneurial Business Tie and Product Innovation: A Moderated Mediation Model

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  • Gang Wang

    (Economics and Management School, Wuhan University, Wuhan 430072, China
    Research Center for China Industry-University-Research Institute Collaboration, Wuhan University, Wuhan 430072, China)

  • Linwei Li

    (Management School, Xi’an University of Architecture and Technology, Xi’an 710055, China)

  • Gang Ma

    (School of Remote Sensing and Information Engineering, Wuhan University, Wuhan 430072, China)

Abstract

Radical innovation has attracted increasing attention in corporate sustainability research. Employing a social capital perspective, we explore how and when entrepreneurial business ties (EBTs) enhance radical innovation by considering risk taking as a critical mediator and environmental turbulence as a conditional factor of the mediation effect. Data is collected from 322 Chinese new ventures. We find empirical support for the moderated mediation model. Specifically, EBT is positively related to risk taking while risk taking is positively related to radical innovation. Risk taking further serves as a mediator in the EBT-radical innovation relationship, and this indirect effect is stronger at a high level of technological turbulence. By revealing how entrepreneurs translate their business ties into positive radical innovation outcomes through risk taking and when this indirect effect is most effective, we enhance understandings of the value of EBT and how to impel radical innovation.

Suggested Citation

  • Gang Wang & Linwei Li & Gang Ma, 2019. "Entrepreneurial Business Tie and Product Innovation: A Moderated Mediation Model," Sustainability, MDPI, vol. 11(23), pages 1-18, November.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:23:p:6628-:d:290240
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