Collectivism Culture, Institutional Environment and Family Business Innovation Investment

Culture is the root and soul of a country and a nation. The excellent traditional Chinese culture is an important source of modern socialist culture with Chinese characteristics and an inexhaustible spiritual driving force for the Chinese nation. As our country’s comprehensive national strength unceasingly climbs, the Chinese traditional culture receives increasing attention from people of all walks of life. The cultivation of rice in the south and wheat in the north in China leads to a huge cultural difference, which shapes individual behavior by influencing individual values, and subsequently influences enterprise governance mode and management decisions. Using the data of the origins of the founders of family businesses listed on A-share market from 2008 to 2020, this paper examines the relationship between collectivist culture and family business innovation and its impact mechanism. The results show that collectivist culture inhibits the innovation input of family firms, and the level of family control plays a mediating role. When the market regulatory environment is better and the political association of enterprises is lower, the influence of collectivist culture on innovation is more obvious. This DBA dissertation thoroughly analyzes the specific path that affects the innovative ability of family businesses. It enriches the related research on family business governance and technological innovation, contributes to the empirical evidence of eastern cultural context, and provides reference for strengthening the dominant position of technological innovation in family business and improving the level of regional innovation.