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This paper takes the listed pharmaceutical manufacturing firms in China’s A-share market from 2011 to 2017 as the research sample, from the perspective of top managers’ pay gap, employs principal component analysis and general least square method to empirically investigate the effect of risk preference of top management team(TMT) on the re-innovation behavior after the failure of innovation. The study found that the risk preference of TMT is positively correlated with the re-innovation input and brand-new innovation after the failure of innovation, but not with the supplementary innovation. Besides, the pay gap not only has a positive moderating effect on the positive correlation between the risk preference of TMT and the re-innovation input, but also on the positive correlation between the risk preference of TMT and the brand-new innovation after the failure of innovation. The findings of this study contribute to: (1) through empirical research on the impact of TMT risk preference on re-innovation behavior after innovation failure, expand the relevant research content and research methods of TMT and innovation failure to make the research results more convincing; (2) by setting a reasonable executive compensation gap, TMT can avoid blindly choosing brand-new innovation behavior after innovation failure with the increase of risk preference innovation, ignoring the potential value of innovation failure projects without supplementary innovation, improving the re-innovation behavior of TMT after innovation failure and improving the re innovation success rate after innovation failure.

As an important psychological feature that affects the strategic decision-making of top management team (TMT), risk preference exerts important impact on the failure of innovation. Taking Chinese pharmaceutical listed companies from 2011 to 2017 as research samples, this paper uses principal component analysis and probit regression model to empirically test the impact of TMT risk preference on technological innovation failure of firms from the perspective of government intervention. It is found that TMT’s risk preference has a significantly positive impact on the failure of firms’ technological innovation. The regulatory role of government intervention between TMT’s risk preference and failure of firms’ technological innovation is an inverted U-shaped relationship. Low or high level of government intervention will promote the positive impact of TMT’s risk preference on the failure of technological innovation, and increase the risk of technological innovation failure. The findings of this study contribute to: (1) broaden the research perspective of technological innovation failure. (2) The innovation failure rate can be reduced by constructing or optimizing the TMT and the government intervening in firm innovation through reasonable and perfect technology innovation guidance policies. (3) expand the research means of innovation failure, making the results more convincing.

Against the backdrop of regional integration, subregions with border effects have become the bottleneck in securing the sustainable development of cross-border cooperation. Based on the discussion of the subregions and subregional cooperation in China, this article put forward three theoretical hypotheses with eight typical provincial subregions in Central China as examples. Combined with relevant models, variables and data, the study tested the evolutionary mechanism of subregional cooperation. The main conclusions include: (a) internal factors contribute to better provincial subregional cooperation; (b) geographical and institutional arrangements significantly affect subregional cooperation, with the shielding effect being the dominant border effect and (c) spatial heterogeneity of high-tech industries has an inverted U-shaped effect on subregional cooperation.

Role of the knowledge-based resources in promoting sustainability in small and medium enterprises (SMEs) is currently a topic of debate. Financial literacy has been identified as a vital knowledge resource for financial decision making, but insufficient attention has been given to how SMEs&rsquo, financial literacy affects their sustainability. Drawing upon a knowledge-based perspective, peaking order theory and dual process theory, we constructed an integrated model to examine the impact of financial literacy, access to finance and financial risk attitude on SMEs&rsquo, sustainability. The sample included 291 chief financial officers (CFOs) of SMEs in Sri Lanka. The output of structural equation modelling revealed direct positive effects of financial literacy, access to finance and financial risk attitude on sustainability. Financial literacy also emerged as a predictor of access to finance and financial risk attitude. Moreover, access to finance and financial risk attitude were found to be partial mediators of the relationship between financial literacy and SMEs&rsquo, sustainability. Theoretical implications and practical implications for policymakers, industry practitioners and academics interested in promoting sustainability amongst SMEs are discussed.

The knowledge-based view (KBV) in the development of small and medium-sized enterprises (SMEs) is a debatable topic in the current literature. Although convergence of technological and financial literacy (techno-finance literacy) is an essential knowledge-based tool to address rapid digitalization of business, the influence of techno-finance literacy in the development of SMEs is still not adequately researched. Drawing upon KBV, we developed a single-mediator structural model with an aim to explore the effect of techno-finance literacy and enterprise risk management (ERM) practices (applications) on the performance of SMEs. A self-administered structured questionnaire was employed to collect data from 319 chief financial offers (CFOs) in Sri Lankan SMEs. The outcome of our study highlights that techno-finance literacy is a significant determinant of two endogenous constructs, namely, SME performance and ERM practices. Furthermore, ERM practices of SMEs were also positively affected to the SME performance. Moreover, ERM practices were observed to have a partial mediation on the relationship between financial literacy and SME performance. These findings form the basis for theories in techno-finance literacy and SME performance, as well as present managerial implications to enhance the performance of SMEs.