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Cultural blueprint: Uncovering how merchant guild culture shapes corporate innovation

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  • Zhang, Xiaoliang
  • Jiang, Jinjin
  • Liu, Zuxian
  • Chen, Lijun

Abstract

This study investigates the channels through which the ethos of merchant guilds influences firm innovative activities. Based on manually compiled historical records of 10 Ming-Qing merchant guilds, we develop a distance-based metric of merchant guild culture. The findings reveal a positive association between merchant guild culture and corporate innovation. Mechanism analysis suggests the impact arises from reducing Type II agency issues, easing financial constraints, and fostering collaborative ties. Notably, the impact is more pronounced in Shanxi and Huizhou merchant guilds, non-state-owned firms, firms less exposed to foreign cultures, and regions with weaker intellectual property rights regimes.

Suggested Citation

  • Zhang, Xiaoliang & Jiang, Jinjin & Liu, Zuxian & Chen, Lijun, 2025. "Cultural blueprint: Uncovering how merchant guild culture shapes corporate innovation," Finance Research Letters, Elsevier, vol. 85(PA).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pa:s1544612325010621
    DOI: 10.1016/j.frl.2025.107804
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