The Impact Of Non-local CEOs On Enterprise Innovation

Innovation is the primary driving force for development.Whether it helps China achieve high-quality development and enhance its overall international strength at the macro level,or promotes industrial transformation and upgrading and sustainable development of enterprises at the micro level,the importance of innovation is obvious.Under the modern company system,CEOs become the core subject of enterprise innovation decision,which directly affect the investment level of enterprise innovation.However,in the era when talent flow becomes normal,the cultural difference between the hometown of the CEO and the location of the enterprise may affect the characteristics of CEOs,thus affecting enterprise innovation.Based on previous studies,this paper studies the effect of non-local CEOs on enterprise innovation and clarifies its mechanism.Theoretically,this study can supplement the theoretical research on the impact of hometown and cultural differences on enterprise innovation,and also provide a demonstration example for the interdisciplinary integration of management,psychology,sociology and other disciplines.In practice,this study provides new management enlightenment for enterprises in terms of employment,which is conducive to promoting enterprise innovation,and also provides theoretical basis and policy reference for regional talent introduction and supervision guidance.By summarizing the existing literature,this paper firstly puts forward the research hypothesis of the impact of non-local CEOs on enterprise innovation based on the upper echelons theory,cultural conflict theory and branding theory.Secondly,this paper selects the data of A-share listed companies from 2007 to2020,and empirically studies the impact of non-local CEOs on enterprise innovation with OLS regression using Stata16.0 software,and analyzes the possible influence channel—CEO risk preference.At the same time,grouping regression method is used to discuss regional risk cultural preference.Finally,to ensure the reliability of the study,robustness tests were carried out by means of instrumental variable analysis,substitution of variables and deletion of special samples.The results show that:(1)non-local CEOs can significantly promote enterprise innovation.(2)The risk preference of CEOs is one of the influence channels for non-local CEOs to promote enterprise innovation.(3)The lower risk culture preference in CEOs’ hometown and the higher risk culture preference in enterprise hometown enhance the promotion effect of non-local CEOs on enterprise innovation.Therefore,combining with the actual situation,the paper puts forward four countermeasures and suggestions: innovating employment mechanism,setting up fault tolerance mechanism,strengthening information disclosure and introducing talents according to local conditions,so as to better promote enterprise innovation and drive economic development.In conclusion,based on previous studies,this paper has the following innovations.(1)This paper discusses the impact of cultural differences on enterprise innovation from the perspective of the hometown of CEOs,which broadens the existing research perspective.(2)This paper proposes that the personal risk preference of CEO is one of the potential channels through which non-local CEOs influence enterprise innovation,and introduces the mediation effect model to analyze the mechanism.It also explains the role of the risk cultural preference of the hometown of CEOs and the location of enterprises,so as to make the mechanism analysis of this paper more comprehensive and in-depth.(3)On the basis of existing research,this paper proves that foreign CEOs promote enterprise innovation by enhancing personal risk preference through empirical methods,and introduces highly exogenous instrumental variables—the number of temples in the hometown of the CEO and the hometown identity of other CEOs to conduct robustness tests,enhancing the reliability of conclusions and suggestions.