Bridging the Great Divide: Investigating the Potent Synergy between Leadership, Zhong-Yong Philosophy, and Green Innovation in China

Abstract

Zhong-yong thinking, a typical value orientation and mode of thought in traditional Chinese culture, has garnered significant scholarly attention. Various cross-sectional studies have explored the relationship between Zhong-yong thinking and innovation; yet, research specifically examining the impact of Zhong-yong thinking on green innovation is scarce. This study adopts the upper echelons theory and theory of manager cognition to investigate the influence of entrepreneurs’ Zhong-yong thinking on green innovation while simultaneously considering institutional pressure and enterprise ownership types as boundary conditions. By analyzing 302 questionnaire responses, the empirical results demonstrate a direct positive effect of Zhong-yong thinking on green innovation. Moreover, institutional pressure positively moderates the relationship between Zhong-yong thinking and green innovation. State-owned enterprises exhibit a more significant impact of Zhong-yong thinking on green innovation than non-SOEs. Overall, this study contributes to the theoretical research of Zhong-yong in management disciplines, particularly in the green innovation literature. Its findings also hold implications for the practice of green innovation in enterprises.