Can the Gap and Rating of Market Expectation Promote Innovation Input of China Manufacturers?
Round 1
Reviewer 1 Report
Proofreading- paragraphs seem broken.
What type of regression did the author use?
The focus is on innovation. What is the link between innovation and sustainability? An innovation is not always beneficial to a community on a long-term basis. This connection should be emphasized as the focus of the journal is on sustainability.
For conclusions and managerial implications, I encourage the author to explore:
Jora, O.D., Butiseacă, A. and Iacob, M., 2017. Seeking Truth from Facts and Figures Only? The Logic of Economics and China's Miracles. Revista de Management Comparat International, 18(5), pp.545-562.
Author Response
Comment 1: Proofreading- paragraphs seem broken.
Answer 1: This may be due to the caching problems of Acrobat Reader DC software. The revised manuscript consists of five sections and 29 pages.
Comment 2: What type of regression did the author use?
Answer 2: This paper uses unbalanced panel regression, which is the individual and time fixed effects model, see chapter 3.1, table 5, table 7 and table 9 in the revised manuscript.
Comment 3: The focus is on innovation. What is the link between innovation and sustainability? An innovation is not always beneficial to a community on a long-term basis. This connection should be emphasized as the focus of the journal is on sustainability.
Answer 3: Your comment is greatly appreciated. This paper is submitted to the section: Economic, Business and Management Aspects of Sustainability. The paper focuses on the sustainable development of manufacturers, and innovation is its realization path. The manufacturing innovation should be suitable for the focus of sustainability. Therefore, referring to your comment, we have added the corresponding discussion in the introduction, see lines 36 to 40 in the revised manuscript. And we quoted two articles from sustainability, see references in the revised manuscript.
Comment 4: For conclusions and managerial implications, I encourage the author to explore: Jora, O.D., Butiseacă, A. and Iacob, M., 2017. Seeking Truth from Facts and Figures Only? The Logic of Economics and China's Miracles. Review of International Comparative Management, 18(5), pp.545-562.
Answer 4: Your comment inspired us. We have read this article “Seeking Truth from Facts and Figures Only? The Logic of Economics and China's Miracles”. As quoted in the text, “It doesn’t matter whether a cat is white or black, as long as it catches mice”. The conclusions and managerial implications are got through empirical research with sufficient and reliable data. Referring to your comment, we quoted this article in conclusions, see lines 589 to 591 in the revised manuscript.
Author Response File: 
Author Response.pdf
Reviewer 2 Report
The topic of the paper is interesting. The different factors that would affect the innovations of the China Manufacturers are analysed and the methodology followed is correct. However, the presents some important shortcomings that must be taken into account. First, the bibliography must be improved including more updated references. Second, the theoretical part must be expanded, analyzing the role that institutions play both on innovations and on entrepreneurs. In this sense, it should be noted how the design and behavior of institutions can benefit or not the implementation of innovations. In this case, for example the rule of law, bureaucracy, etc, must be considered. Third, the tax policy has not been taken into account. Not only government subsidies would have an effect on expectations and innovations, but also the design of taxation. And, fourth, the role of monetary policy that is usually also decisive in the formation of market expectations has not been taken into account in the paper.
Author Response
The topic of the paper is interesting. The different factors that would affect the innovations of the China Manufacturers are analyzed and the methodology followed is correct. However, the presents some important shortcomings must be taken into account.
Comment 1: First, the bibliography must be improved including more updated references.
Answer 1: Your comment is greatly appreciated. The revised manuscript has used the EndNote to update citations and bibliography, and references have been updated.
Comment 2: Second, the theoretical part must be expanded, analyzing the role that institutions play both on innovations and on entrepreneurs. In this sense, it should be noted how the design and behavior of institutions can benefit or not the implementation of innovations. In this case, for example the rule of law, bureaucracy, etc., must be considered.
Answer 2: Your suggestions have been adopted. The design and behavior of institutions play an important role in the field of innovation. This paper has only studied the impact of institutional evaluation on innovation, without analyzing the impact of institutional behavior and design, which is the shortcoming of this paper. Therefore，the section of Shortcomings and prospects has revised and added some shortcoming analysis, see lines 619 to 625 in the revised manuscript.
Comment 3: Third, the tax policy has not been taken into account. Not only government subsidies would have an effect on expectations and innovations, but also the design of taxation.
Answer 3: Your suggestions have been adopted. Therefore，the section of Shortcomings and prospects has revised and added some shortcoming analysis, see lines 619 to 625 in the revised manuscript.
Comment 4: Fourth, the role of monetary policy that is usually also decisive in the formation of market expectations has not been taken into account in the paper.
Answer 4: Your suggestions have been adopted. Therefore，the section of Shortcomings and prospects has revised and added some shortcoming analysis, see lines 619 to 625 in the revised manuscript.
Author Response File: Author Response.pdf
Round 2
Reviewer 1 Report
The paper has been improved! It looks better. However, you need to further argue in the introduction and conclusions the impact of innovation considering the effects on the community and environment (refer to pollution, excessive consumption of resources and so on). You need to express your thoughts, not necessarily use references!
Also, please proofread the text, especially the newly added text.
Author Response
Dear Reviewer:
I am grateful to you for your helpful and constructive comments on the manuscript. I have seriously revised the manuscript according to your comments，made efforts to correct the mistakes of the contextual spelling, grammar, punctuation, sentence structure, and so on, and marked all the changes in blue in the manuscript. The following is a point-to-point response to your comments.
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Comments: The paper has been improved! It looks better. However, you need to further argue in the introduction and conclusions the impact of innovation considering the effects on the community and environment (refer to pollution, excessive consumption of resources, and so on. You need to express your thoughts, not necessarily use references! Also, please proofread the text, especially the newly added text.
Answer: Your suggestions have been adopted. I have added the following to the introduction:” Facing the pressure, manufacturers must solve these strategic problems, such as how to allocate their limited resources, enhance their core competitiveness continually, and maintain healthy and sustainable value development, and so on. There is no doubt that innovation is the internal motive force of manufacturers to get a long-term competitive advantage and sustainable development in the market competition, and affects the long-term interests of investors and shareholders from the social effect of innovation. Because innovation is helpful for manufacturers to acquire, assimilate, transform, and exploit knowledge new technology knowledge, and make the intangible resources and capabilities of manufacturers continuously generated and accumulated. The stock resources and capabilities are the critical determinants for manufacturers to implement technology upgrading and obtain long-term profits, and then improve the market value of manufacturers. At the same time, along with the transformation of the social environment, the increasingly severe environmental pollution has aroused stakeholders' broad concern, and the voice of environmental protection is ever-rising. However, the essential resources related to the survival and development of manufacturers are usually in the hands of some critical environmental stakeholders, such as government, community, institutions, investors, and other related entities，which makes manufacturers face many uncertainties in the process of allocating and using these resources. Manufacturers must respond to and comply with the voice of external relevant environmental stakeholders control environmental pollution through innovation in order to accumulate moral capital, establish and maintain a trustworthy relationship with the stakeholders, improve their image and reputation, gain the recognition and support of stakeholders, create a favorable external environment for the development of manufacturers, increase social intangible resources, and finally realize the win-win of economic growth and environmental protection.”
Author Response File: Author Response.pdf
Reviewer 2 Report
This new version has improved the paper
Author Response
Dear Reviewer:
I am grateful to you for your approval of the revised manuscript. I have made efforts to correct the mistakes of the contextual spelling, grammar, punctuation, sentence structure, and so on, and marked all the changes in blue in the revised manuscript. Thank you very much for your comments.
Best regards
the author
Round 3
Reviewer 1 Report
The article looks in order now. However, I urge the author to proofread it carefully once again, as minor langauge changes must be made.
Author Response
Dear Reviewer:
Thank you very much for your comments. On the basis of your suggestion, I have made efforts to correct the mistakes of the contextual spelling, grammar, punctuation, sentence structure. The change traces of the three modifications are marked in red, blue, and green in the revised manuscript. The following is mainly the content of the third revision.
- I have corrected the misuse of countable nouns and uncountable nouns. For example, ” innovation inputs, innovation outputs, institutional coverages” are amended as ” innovation input, innovation output, institutional coverage.”
- I have corrected voice problems of some sentences and changed passive voice to active voice. For example, “no coincident conclusion has been reached on how the capital market expectation affects enterprise innovation input; the following hypothesis is proposed; the dependent variable is replaced by ALP” is amended as “how the capital market expectation affects enterprise innovation input has reached no coincident conclusion; this paper puts forward the following hypothesis; ALP replaces the dependent variable PRE.”
- I have corrected the misuse of the definite articles and indefinite articles. For example, “market expectation gap, market expectation rating, main business, proportion” are amended as “the market expectation gap, the market expectation rating, the main business, the proportion.”
- I have chosen a suitable adjectives and adverbs. For example, “the main business, at the same time, from weak to strong” are amended as “the leading business, simultaneously, from low to high.”
- We corrected six hypotheses to make the sentence more refined. The details are as follows:
Hypothesis 1a: when the change of market expectation gap is from small to large, the change of enterprise innovation input will first decrease and then increase. The relation between them is a U-shape.
Hypothesis 1b: when the change of market expectation rating is from low to high, the change of enterprise innovation input will first increase and then decrease. The relation between them is an inverted U-shape.
Hypothesis 2a: Institutional coverage negatively moderates the relationship between market expectation gap and enterprise innovation input. The higher institutional coverage is, the weaker the U-shaped relationship between market expectation gap and enterprise innovation input will be significant.
Hypothesis 2b: Institutional coverage positively moderates the relationship between market expectation rating and enterprise innovation input. The higher institutional coverage is, the stronger the inverted U-shaped relationship between market expectation rating and enterprise innovation input will be significant.
Hypothesis 3a: Government subsidies negatively moderate the relationship between market expectation gap and enterprise innovation input. The higher government subsidies are, the weaker the U-shaped relationship between market expectation gap and enterprise innovation input will be significant.
Hypothesis 3b: Government subsidies negatively moderate the relationship between market expectation rating and enterprise innovation input. The higher government subsidies are, the weaker the inverted U-shaped relationship between market expectation rating and enterprise innovation input will be significant.
- I have rewritten the sentence to avoid a dangling modifier. For example:
“Referring to the related topic research, eight sub-indicators will be selected as control variables X” is amended as “Based on the related topic research results and practice of home and abroad, this paper selects eight sub-indicators as control variables X.”
Author Response File: Author Response.pdf
