RETRACTED ARTICLE: Examining the Influence of Mayoral Overconfidence on Government Innovation Investment and City Innovation Power: an Environmental Boundary Model Approach

Linbin Zhu (), Stavros Sindakis () and Gazal Showkat ()
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Linbin Zhu: Xiamen University
Stavros Sindakis: Hellenic Open University
Gazal Showkat: Institute of Strategy, Entrepreneurship and Education for Growth

Journal of the Knowledge Economy, 2024, vol. 15, issue 3, No 161, 14420-14451

Abstract: Abstract This study explores the phenomenon of managerial behavioral patterns resulting from complex social environments and investigates the behavioral differences of government officials under different conditions based on an irrational hypothesis. Leveraging big data and text sentiment analysis, the study introduces a measure of self-confidence by analyzing the texts of officials’ work reports and speeches. Focusing on innovation as a common goal pursued by local governments, the research examines whether irrational factors, such as overconfidence, influence the allocation of innovation investment by municipal officials and subsequently impact urban innovation development. The study employs an environmental boundary model rooted in high-level echelon, deviance, and innovation theories. Panel data from innovative cities spanning the period 2006–2021 serve as the research sample to examine the hierarchical relationship between mayoral self-confidence levels, government innovation investment, and urban innovation power. The empirical analysis reveals that government innovation investment significantly contributes to urban innovativeness. However, the findings indicate that mayoral overconfidence negatively moderates this relationship, and the moderating effect of overconfidence varies across different environments. This research sheds light on the crucial role of government officials’ self-confidence in influencing innovation investment and urban innovation outcomes. The findings emphasize the importance of considering the impact of irrational factors on decision-making processes in local governance. By understanding the moderating effect of mayoral overconfidence, policymakers and stakeholders can develop strategies that enhance the effectiveness of government innovation initiatives and promote sustainable urban innovation.

Keywords: Self-confidence; Overconfidence; Innovation investment; Government innovation investment; Sustainable urban innovation (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s13132-023-01570-9

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