The Impact of Corporate Strategy on Enterprise Innovation Based on the Mediating Effect of Corporate Risk-Taking

Corporate strategy and enterprise innovation are highly relevant to corporate sustainability. Although previous studies on corporate strategy and enterprise innovation have yielded many results, a consensus regarding the relationship between the two is still lacking. The purpose of this study was to empirically analyze the impact of corporate strategy on corporate innovation performance and analyze corporate risk-taking as a potential factor mediating such. Based on data for listed Chinese A-share manufacturing companies for 2008 to 2018, this empirical study found that corporate strategy and corporate innovation show an inverted U-shaped relationship. Corporate risk-taking plays a mediating effect between corporate strategy and corporate innovation performance. This study expands the knowledge on situational variables and the mechanism by which corporate strategy might impact enterprise innovation and can enlighten managers to promote the sustainable development of manufacturing enterprises.