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Directors' network "Peer Effects" and the "Imitation Trap" of corporate innovation investment: An analysis of the mediating role of corporate risk-taking

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  • Chen, Yusheng
  • Li, Luping
  • Zhang, Xi

Abstract

Against the backdrop of China's transition from high-speed growth to high-quality development, corporate innovation investment has become a crucial driver of industrial upgrading. However, the problem of the "imitation trap," caused by excessive imitation of peers' innovation models, has become increasingly prominent. Based on data from listed companies between 2007 and 2023, this paper investigates the influence and mechanism of directors' network peer effects on the imitation trap in corporate innovation investment. The results show that directors' network peer effects significantly strengthen firms' tendency to imitate in innovation investment. Corporate risk-taking plays a partial mediating role between directors' network peer effects and the innovation investment imitation trap, while the proportion of executive shareholding exerts a significant moderating effect in this relationship. Further analysis reveals that the influence of directors' network peer effects on the innovation investment imitation trap is more pronounced in state-owned enterprises and manufacturing firms. The findings highlight the potential risks of socialized innovation decision-making within directors' networks and provide valuable insights for optimizing board structure and enhancing innovation efficiency.

Suggested Citation

  • Chen, Yusheng & Li, Luping & Zhang, Xi, 2026. "Directors' network "Peer Effects" and the "Imitation Trap" of corporate innovation investment: An analysis of the mediating role of corporate risk-taking," Economic Analysis and Policy, Elsevier, vol. 91(C), pages 894-904.
    • Handle: RePEc:eee:ecanpo:v:91:y:2026:i:c:p:894-904
    DOI: 10.1016/j.eap.2026.03.038
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