The Impact of Membership in Non-Local Chambers of Commerce on Corporate Innovation: The Dual Role of Business Culture and Social Networks

Abstract

Using a sample of A-share listed companies from the Shanghai and Shenzhen Stock Exchanges from 2010 to 2020, this study examines the impact of membership in non-local chambers of commerce (NLCCs) on corporate innovation, considering the dual attributes of business culture and social networks associated with these chambers. The research finds that joining a NLCC significantly promotes corporate innovation. Agency costs play a partial mediating role between membership in NLCCs and corporate innovation, with a chain mediation path of “NLCC—social capital—agency costs—corporate innovation.” Further analysis reveals that the more NLCCs there are in a company's location, the greater the positive impact of joining one on corporate innovation. The promotion effect of joining a NLCC on corporate innovation is stronger for state-owned enterprises (SOEs) compared to non-state-owned enterprises (non-SOEs). In addition, membership in NLCCs fosters both invention and non-invention innovation.

Keywords

non-local chamber of commerce (NLCC) / corporate innovation / business culture / social networks / agency costs / social capital

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2024 Higher Education Press