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Long-term oriented culture, performance pressure and corporate innovation: Evidence from China

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  • Qiaoling Fang
  • Cai Wen
  • Hui Xu

Abstract

This paper extracts culture element of long-term orientation from Chinese listed firm’s annual report, then argue and testify whether long-term orientation can help firms to hang on risky decision especially as innovation, when firms are under performance pressure. There are three main conclusions. First, we report that the higher degree of long-term oriented culture a firm has, the stronger innovation capability the firm shows. Second, we find that long-term oriented culture can improve employee’s educational qualification to promote corporate innovation, as well as improve the corporate internal control to promote innovation. Third, when firms are subjected to internal or external performance pressure in their business process, higher long-term oriented culture will make firms more innovative.

Suggested Citation

  • Qiaoling Fang & Cai Wen & Hui Xu, 2024. "Long-term oriented culture, performance pressure and corporate innovation: Evidence from China," PLOS ONE, Public Library of Science, vol. 19(5), pages 1-25, May.
    • Handle: RePEc:plo:pone00:0302148
    DOI: 10.1371/journal.pone.0302148
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    References listed on IDEAS

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