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Individualistic CEO and corporate innovation: Evidence from U.S. frontier culture

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  • Gao, Lei
  • Han, Jianlei
  • Pan, Zheyao
  • Zhang, Huixuan

Abstract

We study the relationship between a CEO's individualistic cultural background and corporate innovation. Using hand-collected data on the birthplaces of U.S.-born CEOs, we present robust evidence demonstrating that CEOs born in frontier counties with a higher level of individualistic culture are associated with superior corporate innovation outcomes. Firms led by these CEOs exhibit higher levels of both quantity and quality in their innovation output, placing a greater emphasis on breakthrough innovation compared to firms led by CEOs born elsewhere. Furthermore, our findings are consistent with the notion that individualistic CEOs cultivate an innovation-oriented corporate culture and enhance human capital by attracting a greater inflow of inventors, thereby promoting corporate innovation.

Suggested Citation

  • Gao, Lei & Han, Jianlei & Pan, Zheyao & Zhang, Huixuan, 2023. "Individualistic CEO and corporate innovation: Evidence from U.S. frontier culture," Research Policy, Elsevier, vol. 52(9).
    • Handle: RePEc:eee:respol:v:52:y:2023:i:9:s0048733323001361
    DOI: 10.1016/j.respol.2023.104852
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    More about this item

    Keywords

    Innovation; Culture; Individualism; Frontier history; Human capital;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • N9 - Economic History - - Regional and Urban History

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