关键词: 战略激进度 , 公司创新 , 管理层激励 , 失败容忍度

Abstract: The formulation of business strategy affects the overall development of the company. Using a sample of Chinese listed firms for 2007-2016, we examine whether business strategy affects corporate innovation. We find that more radical business strategy is associated with higher level of corporate innovation. Further analysis suggests that the positive correlation between business strategy and corporate innovation becomes more significant when the companies are private or in highly competitive products market. Moreover, management incentive and risk tolerance appear to be underlying channels through which business strategy affects corporate innovation. Through the analysis of the impact of business strategy on corporate innovation, this paper plays a reference role for the management to make business activity plan and encourage corporate innovation.

Key words:  business strategy , corporate innovation , management incentive , risk tolerance , ownership , product competition