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Science and Technology Management and Innovation Management

The Impact of Government Guidance Funds on Corporate Social  Innovation 

—A Perspective from Resource Orchestration Theory 

Meng Mengmeng, Zhang Zerui

(School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing 100876, China)

Abstract: In the context of sustainable development, corporate social innovation (CSI) has  become a primary driving force for firms to address social challenges and achieve shared economic and social value. Analyzing how government guidance funds (GGFs) affect CSI is crucial  for optimizing public capital allocation and promoting sustainable social innovation. This paper  utilizes data from Chinese A-share listed companies, covering the years from 2011 to 2023. The  study begins by treating GGFs as scarce and certified heterogeneous resources and dividing the  influence process into resource structuring, bundling, and leveraging. The sample is categorized  into treatment and control groups based on whether firms receive GGF investment. The two-way  fixed-effects model is used to measure the impact of GGFs on CSI. CSI is measured by the proportion of social innovation-related word frequency in the Management Discussion and Analysis. This analysis aims to evaluate the direct effect of GGFs on CSI. At the same time, the mediation  model is used to assess the mediating roles of innovative human capital and strategic alliances, and to analyze how GGFs affect CSI through internal talent and external alliance paths. The results indicate the following: ①GGFs significantly promote CSI, and this conclusion  remains robust after endogeneity tests and multiple robustness checks. ② In the mechanism  analysis, GGFs significantly increase innovative human capital and promote strategic alliances. Both innovative human capital and strategic alliances serve as mediating variables between  GGFs and CSI, forming a dual transmission path. ③In the heterogeneity analysis, the promoting  effect is more significant in firms with a higher proportion of female executives, weaker managerial myopia, and higher internal control indices, while it is not significant in firms with fewer female executives, stronger short-term orientation, or lower internal control. Finally, based on the  above conclusions, targeted development and improvement suggestions are proposed from three  aspects: First, the government should strengthen the social innovation orientation of GGFs and  link them with regional talent policies; Second, firms should use GGFs to attract innovative talent, build strategic alliances, and strengthen long-term orientation and internal control; Third, governments and firms should jointly promote the transformation of GGF resources into social innovation practices and optimize public capital allocation. 

Key words: government guidance funds; corporate social innovation; innovative human capital; strategic alliances; resource orchestration theory; managerial myopia; female executives; internal control