Early Experience Within Tizhi System, Policy Perception and Corporate Innovation: Evidence from Chinese Private Firms

Abstract

ABSTRACT Drawing on the imprinting theory, this study examines the role of entrepreneurs’ Tizhi system experience in corporate innovation. Using survey data from 4276 Chinese private firms, we find that entrepreneurs’ early experience within the Tizhi system exerts a positive impact on corporate innovation. This effect is more pronounced in entrepreneurs with pro-social value, firms with party branch, and provinces with strong preference for innovation. Further channel tests provide evidence that entrepreneurs with Tizhi system experience have sharper policy perception and that makes them have stronger confidence and motivation for innovation. These findings shed light on how an entrepreneur’s early experience affects corporate behavior in transitional economies, and contribute to the literature in the field of corporate innovation.