Purpose This study aims to investigate the role of embedded party organizations within enterprises in promoting industry-university-research (IUR) cooperation in Chinese political and economic context. By examining data from A-share listed companies on the Shenzhen stock market from 2013 to 2021, the research aims to understand how these party organizations influence IUR, particularly in firms with financial constraints and at different growth stages. The study seeks to provide empirical evidence on the effectiveness of party organization embedding in enhancing IUR cooperation and its implications for corporate governance. Design/methodology/approach The research uses a quantitative approach, analyzing data from A-share listed companies on the Shenzhen stock market between 2013 and 2021. The study uses empirical methods to assess the impact of embedded party organizations on IUR cooperation. Mechanism tests are conducted to explore the supervision and restriction effects of these organizations. The study also performs heterogeneity analysis to examine the influence of party organizations on companies at different financial stages and life cycles, ensuring robust and comprehensive findings. Findings The study finds that embedded party organizations significantly promote IUR cooperation through supervision and restriction mechanisms. These organizations help curb the hollowing out behavior of major shareholders and encourage self-discipline in innovation strategies, particularly in companies with financial constraints and those in growth or decline stages. The depth and breadth of party organization embedding positively correlate with the effectiveness of IUR, suggesting that longer and more extensive integration of party organizations in corporate governance enhances cooperative innovation efforts. Originality/value This research contributes to the understanding of the unique role of party organizations in corporate governance within Chinese political system. It extends the literature on political embeddedness by highlighting the positive impact of party organizations on IUR cooperation. The study provides new insights into the mechanisms through which party organizations influence corporate decision-making and innovation efficiency. In addition, it offers practical implications Practically, this research provides guidance for the government to promote IUR through party organizations and for enterprises to achieve collaborative innovation through government policies.
Jiang et al. (Thu,) studied this question.