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Do CEO's early-life marketization experiences affect the innovation behavior of SMEs?

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  • Hou, Xiaohui
  • Wang, Bo
  • Lian, Jiale
  • Ke, Kong-lin

Abstract

We investigate the relationship between chief executive officers’ (CEOs) early-life exposure to marketization transition and the research and development (R&D) intensity of Chinese small and medium-sized enterprises (SMEs). We find that there is a significant positive relationship between the early-life transition experiences of CEOs and the R&D intensity of SMEs. CEOs who have experienced higher stages of marketization transition are significantly more likely to engage in proactive innovation activities. The means of the potential R&D intensity distributions are increasing in the treatment level, although this increasing trend is not always significant. Overall, the results confirm the view that experiencing a transition in early-life significantly facilitates CEOs’ engagement in innovation activities.

Suggested Citation

  • Hou, Xiaohui & Wang, Bo & Lian, Jiale & Ke, Kong-lin, 2021. "Do CEO's early-life marketization experiences affect the innovation behavior of SMEs?," Journal of Asian Economics, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:asieco:v:75:y:2021:i:c:s1049007821000683
    DOI: 10.1016/j.asieco.2021.101339
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    2. Yan, Chen & Ji, Yaxing & Chen, Rui, 2023. "Research on the mechanism of selective industrial policies on enterprises' innovation performance ——Evidence from China's photovoltaic industry," Renewable Energy, Elsevier, vol. 215(C).

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    More about this item

    Keywords

    Marketization transition; CEOs’ early-life experiences; Small and medium-sized enterprises; R&D intensity;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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