Merchant guild culture derives from business practices associated with medieval and early modern merchant guilds. This study aims to investigate the nexus between merchant guild culture and firm internationalization as well as the factors that moderate this nexus.
Based on the distribution of the ten merchant guilds in China and data on Chinese listed companies, this study uses the geographical proximity-based method to measure the intensity of merchant guild culture, which is the nearest distance between the ten merchant guilds’ origins and each firm’s registered address.
This study provides robust evidence that merchant guild culture positively relates to the degree of firm internationalization. It also documents that this nexus is stronger for firms with overseas background executives and those situated in highly marketized regions.
The findings of this study have valuable implications for both governments and firms. Governments can leverage local cultures to promote the internationalization of domestic firms, particularly in emerging economies with rich cultural heritage. Firms can further enhance their internationalization efforts by hiring more executives with overseas backgrounds.
This study advances the imprinting literature, provides a novel perspective on the antecedents of firm internationalization and expands research on the contemporary value of historical business culture.
