Review of Research on the Negative Innovation Performance Feedback and Corporate Overinvestment

Insufficient innovation momentum and imbalanced investment efficiency both constrain socio-economic development. The key to addressing these two issues lies in activating the innovation potential of micro-enterprises and preventing irrational investment. While extensive research exists on performance feedback related to economic indicators, studies on those associated with other objectives remain scarce. Meanwhile, a research gap persists concerning the impact on corporate investment efficiency from the corporate behavior perspective. Against this backdrop, this paper analyzes the research contexts of innovation dilemmas and overinvestment, highlighting the necessity of studying their interrelationship. Additionally, following a brief review of the behavioral theory of the firm, threat-rigidity theory, and prospect theory, this paper synthesizes relevant literature on innovation performance feedback and overinvestment, and offers prospects for future research.