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Abstract This paper aims to clarify the influence of controlling and participatory state‐owned equity on innovation performance within mixed‐ownership enterprises (MOEs), focusing specifically on the co‐innovation effect of ownership structure. Empirical evidence suggests that controlling state‐owned equity hinders innovation performance in MOEs. In contrast, participatory state‐owned equity has the potential to significantly boost innovation performance in MOEs. Moreover, a more thorough analysis reveals that the level of marketization not only mitigates the inhibitory impact of controlling state‐owned equity on innovation but also enhances the positive effect of participatory state‐owned equity on innovation in MOEs. These empirically supported findings offer valuable insights for crafting effective policy strategies to promote mixed‐ownership reforms in emerging economies.
Ning et al. (Sat,) studied this question.
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