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Nationalism and corporate innovation performance

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  • Liu, Fang
  • Zhang, Zhaomei
  • Zhang, Junjie
  • Guo, Fenghang

Abstract

In the landscape of rapid globalization and technological advancement, firms face increasingly fierce competition in innovation. Nationalism, as a unique informal institutional force, is increasingly influencing firms' innovation strategies and performance. Therefore, this paper uses the Panel data of Chinese A-share listed companies between 2011 and 2023 to verify the influence of nationalism on corporate innovation performance by combining theoretical and methodical approaches. The outcome of the study is that nationalism positively promotes corporate innovation performance, and this conclusion remains valid after a series of robustness tests. A mechanistic analysis shows that nationalism promotes corporate innovation performance through increased government subsidies, enhanced corporate reputation, and improved managerial efficiency. Heterogeneity analysis shows that for non-state-owned firms and firms located in regions that have implemented the policy of “promoting the integration of technology and finance”, the promoting effect of nationalism on firm innovation performance is more significant. Further analysis shows that nationalism also enhances the innovation performance of key core technologies. This work has not only expanded the theoretical boundaries of corporate innovation research, but also provided the practical experience and theoretical support for Chinese enterprises to enhance their innovation capabilities and achieve sustainable development in the new era.

Suggested Citation

  • Liu, Fang & Zhang, Zhaomei & Zhang, Junjie & Guo, Fenghang, 2025. "Nationalism and corporate innovation performance," International Review of Economics & Finance, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:reveco:v:102:y:2025:i:c:s1059056025004484
    DOI: 10.1016/j.iref.2025.104285
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