Power distance, legal protection of intellectual property rights and corporate R&D human resources

Abstract

Existing studies have mainly investigated the pairwise relationship between culture, intellectual property rights (IPR) protection, and enterprises' innovation input. This paper links culture and IPR law to study their joint impact on enterprises' innovation human input. Based on the panel data of Chinese listed companies in Shanghai and Shenzhen Stock Exchange, studying a specific cultural dimension (i.e., power distance) and its influence with legal protection of IPR on corporate research and development (R&D) human resources (defined in terms of scale and efficiency). Power distance is negatively related to the R&D human resources scale and positively related to their efficiency. This is because power distance affects the R&D personnel's job satisfaction and turnover rate. Relaxed IPR legal environment is not conducive to expanding the scale of R&D human resources. Because the vital interests of R&D personnel are not legally protected, and the turnover cost is reduced. There is an interaction between Power Distance and Legal Protection of IPR, which can moderate relationship between Power Distance and R&D Human Resources Scale. Weak Legal Protection of IPR may enhance the positive correlation between Power Distance and R&D Efficiency. Enterprises should take corresponding measures to enhance their ability of independent innovation and R&D human resource management in culture, IPR protection, and human resources management.