Purpose Drawing upon dual legitimacy theory, this study aims to examine the influence of corporate nationalism on innovation performance and its boundary conditions. Design/methodology/approach The sample comprises A-share listed enterprises on the Shanghai and Shenzhen stock exchanges from 2007 to 2022. Corporate nationalism was measured using text analysis and machine learning methods. The authors establish baseline regression, mediating-effect and moderating-effect models using OLS regression to test the impact of corporate nationalism on innovation performance and examine the proposed hypotheses. Findings The results indicate that corporate nationalism significantly enhances innovation performance, a robust finding. Moderation analysis reveals that state ownership exerts a positive moderating influence, whereas internationalization level exerts a negative moderating influence. Mechanism tests grounded in adaptive legitimacy theory identify productivity, governance and R&D effects as the three potential pathways. From a strategic legitimacy perspective, financing, profit and talent effects emerge as three potential pathways. Furthermore, distinguishing between rational and radical nationalisms reveals that rational nationalism fosters corporate innovation, whereas radical nationalism inhibits it. Originality/value This study posits that nationalism is an informal institutional factor enhancing corporate innovation performance, thereby expanding the theoretical boundaries in this field. Leveraging dual legitimacy theory, this study clarifies the underlying channels through which corporate nationalism affects innovation performance. It also deepens their understanding of the contextual roles of nationalism in promoting innovation by examining the moderating effects of ownership attributes and internationalization levels.
Liu et al. (Thu,) studied this question.