The impact of corruption governance on enterprise ambidextrous innovation: evidence from a quasi-natural experiment in China

Zhui Liu () and Yuchun Tian ()
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Zhui Liu: Shihezi University
Yuchun Tian: Shihezi University

Eurasian Business Review, 2025, vol. 15, issue 2, No 2, 349-384

Abstract: Abstract National governance principles play an important role in shaping micro-level enterprise governance. In the context of building an innovative nation, investigating how corruption governance influences enterprise innovation provides valuable insights for enterprises’ innovation decision-making. Based on resource dependence theory and organizational ambidexterity theory, we investigate the impact of corruption governance on enterprise innovation and ambidextrous innovation. We use data from China’s A-share listed enterprises between 2007 and 2022, employing China’s anti-corruption campaign as a quasi-natural experiment. Our findings show the following: (1) Corruption governance has a positive impact on enterprise innovation—specifically exploratory and exploitative innovation—with a stronger influence on exploitative innovation, and this effect is also sustained in the long run. (2) Corruption governance reduces both implicit and explicit corrupt practices in enterprises while increasing their financing and risk-bearing capacities, ultimately encouraging exploratory and exploitative innovation. (3) The effects of corruption governance on exploratory and exploitative innovation are the same regardless of enterprise ownership. Corruption governance has a greater impact on both types of innovation in large enterprises, high-tech industries, and enterprises that receive more media attention. In industries with high competition and regions with more comprehensive formal institutions, corruption governance has a greater impact on exploratory innovation. These findings highlight the long-term positive role of corruption governance in enterprises and provide theoretical and practical insights for strategic decisions in enterprise ambidextrous innovation.

Keywords: Corruption governance; Exploratory innovation; Exploitative innovation; Difference-in-difference model (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s40821-025-00308-8

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