The Impact of Non‐Market Strategic Integration on Green Innovation: The Moderating Effect of Shareholding Structure

ABSTRACT The effects of non‐market strategic integration are a common concern in both theory and practice. We integrate two non‐market strategies, namely corporate philanthropy in corporate social responsibility and political connection in corporate political activities, and meticulously explore in depth the impact of non‐market strategic integration on green innovation using data from Chinese listed firms from 2011 to 2020 based on the principal‐agent theory. We find that two types of non‐market strategic integration, corporate philanthropy in corporate social responsibility and political connections in corporate political activities, negatively affect corporate green innovation because of the emergence of managerial agency problems. Further investigation into the moderating effect of shareholding structures indicates that both cross‐shareholding and multiple large shareholders can alleviate the negative impact of non‐market strategic integration on corporate green innovation. These findings complement the research on the relationship between non‐market strategic integration and value creation by the firm.