The Merchant Guild's Business Philosophy and Corporate Innovation.

This article examines how the traditional business philosophies of Chinese merchant guilds influence contemporary corporate innovation. It classifies ten nationally renowned Chinese merchant guilds into two types based on historical capital investment patterns: adventurous guilds, which favored high-risk investments in emerging industries, and conservative guilds, which preferred stable investments such as land acquisition. Using data on chairpersons' birthplaces to link them to their respective guild cultures, the study finds that firms led by chairpersons from adventurous guild regions exhibit significantly higher innovation input and output, measured by R&D expenses and patent activities. The effect is stronger in regions with lower marketization, industries facing greater environmental uncertainty, and firms where chairpersons have greater discretionary power, with risk-taking propensity identified as a key channel. The research highlights the enduring impact of informal, historically rooted business cultures on modern corporate behavior within China's unique institutional context.