Executive military experience and corporate innovation in China: evidence from listed firms

Purpose This study aims to examine how executives’ military experience is associated with corporate innovation in Chinese listed firms. It further investigates whether financing constraints and the market environment shape the relationship between military experience and innovation. Design/methodology/approach Using panel data from Chinese listed firms, this study uses regression analysis to examine the relationship between executives’ military experience and both innovation input and innovation output. This study further explores heterogeneity across different firm types and tests the moderating roles of financing constraints and the market environment. Findings The results suggest that executives’ military experience is negatively associated with both innovation input and innovation output. This negative association is more pronounced among state-owned enterprises and growth-stage firms. Furthermore, financing constraints strengthen the negative relationship between military experience and innovation, whereas a favourable market environment weakens it. Originality/value This study contributes to the literature by moving beyond the question of whether military experience affects corporate innovation and focusing on why and under what conditions such effects emerge. Drawing on imprinting theory and upper echelons theory, the study contrasts military risk-taking and military conservatism perspectives and provides evidence suggesting that the latter is more salient in China’s institutional environment. In addition, the study highlights financing constraints and the market environment as important boundary conditions that shape the relationship between military experience and corporate innovation.