THE MEDIATING ROLE OF RISK MANAGEMENT IN THE RELATIONSHIP BETWEEN TECHNOLOGICAL INNOVATION, MARKET DYNAMICS, AND POLICY EVOLUTION: EVIDENCE FROM CHINA’S NEW ENERGY ENTERPRISES

Abstract

This study develops an integrated analytical framework that synthesizes innovation theory, open innovation theory, and risk management theory to examine how new energy enterprises achieve sustainable innovation in volatile environments. The research employs Structural Equation Modeling (SEM) to analyze survey data collected from firms in the new energy sector. The SEM results reveal that technological innovation, market changes, and policy adjustments all exert significant positive effects on firms’ innovation performance. Moreover, enterprise risk management partially mediates these relationships, indicating that firms with stronger risk management practices achieve higher levels of innovation resilience. The study contributes to theoretical understanding by quantifying the mediating role of risk management within innovation systems and offers practical implications for managers and policymakers aiming to enhance innovation capacity in rapidly evolving energy markets.