Board Human Capital and Enterprise Growth: A Perspective of Ambidextrous Innovation

Abstract

This paper investigates the relationship between board human capital and enterprise growth. By analysing data from Chinese publicly listed companies between 2008 and 2017, we apply resource-based theory and endogenous growth theory to develop a model, and we show board human capital has positive effects on enterprise growth and ambidextrous innovation mediates between them. We further consider the role of industry differences and market competition and show empirical evidence that board human capital has a favorable impact on enterprise growth, and such an effect is more prominent in the high-tech industry. In addition, our results suggest that ambidextrous innovation plays a partial intermediary role between board human capital and enterprise growth. Such a favorable effect is prominent in the high-tech industry but is not affected by market competition. Furthermore, the promotion of exploratory innovation is not affected by the nature of the industry, but the promotion effect is more pronounced when the market competition is weak. We finally discuss the implications of the findings for scholars, managers, and policymakers alike.