Agribusiness diversification and technological innovation efficiency: A U‐shaped relationship. Issue 2 (9th November 2022)

• Record Type: Journal Article
• Authors: Su, Zhiwen; Zhang, Mingyu; Sun, Jianjun; Wu, Wenbing
• Is Part Of: Agribusiness. Volume 39:Issue 2(2023)
• Page Start: 322
• Page End: 346
• Publication Date: 2022-11-09
• Subjects: agribusiness diversification -- government subsidies -- technological innovation efficiency -- U‐shaped relationship; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Finance -- Periodicals; Agricultural industries -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- United States -- Finance -- Periodicals; Agricultural industries -- United States -- Periodicals; 338.1
• DOI: 10.1002/agr.21785
• Languages: English
• ISSNs: 0742-4477

Abstract

Abstract: In recent years, agribusiness firms have increasingly diversified their product portfolio and expanded into new business areas through internal growth or acquisition, which can lead to the reallocation of innovation resources. This study examines the impact of agribusiness diversification (AD) on technological innovation efficiency (TIE) in China. Based on an 8‐year longitudinal dataset of 101 Chinese listed agribusiness firms from 2012 to 2019, this study applies the Tobit regression technique to reveal the underlying mechanism between AD and TIE. The empirical results show that: (1) the AD‐TIE relationship follows a U‐shaped pattern, that is, at low levels of AD, the AD‐TIE relationship is negative; at high levels of AD, the AD‐TIE relationship is positive. (2) government subsidies (GS) negatively moderate the U‐shaped relationship between AD and TIE, such that GS flattens the U‐shaped curve. Our findings have important implications for agribusiness managers and public policymakers. [EconLit citations: H25, L25, Q16].