This study aims to examine how Chinese entrepreneurs’ early rural household registration status affects firms’ innovation investment and the moderating effects of individual mobility paths (education and military experience) and institutional environments (political capital and level of regional marketisation).
The data for this study are derived from the China Private Enterprise Sample Survey Database (2016), which was jointly organized and implemented by the Central United Front Work Department, the All-China Federation of Industry and Commerce, and the China National (Private) Economic Research Association. Ultimately, valid samples from 3,558 enterprises were obtained.
The empirical results indicate that entrepreneurs with early rural household registration status exhibit significantly lower levels of innovation investment compared to entrepreneurs with early urban household status. However, this negative effect is significantly mitigated for entrepreneurs with higher education or military experience. Further analysis shows that the dampening effect of rural household registration status on innovation investment is more pronounced in entrepreneurial groups that lack political capital and in less market-oriented regions.
This study compensates for the lack of dialogue between institutional theory and innovation research and expands the identity system perspective of entrepreneurial innovation research.
