The impact of biculturalism and native strategic leadership on immigrant entrepreneurs’ innovation and initial public offering performance

We examine innovation and performance in initial public offering (IPO) firms founded by bicultural immigrant entrepreneurs (BIEs). Based on cognitive theory, biculturalism literature, and social embeddedness theory, we contend that BIEs’ biculturalism and lack of social embeddedness uniquely influence their cognitive ability and preference to pursue innovation, enhancing venture performance. This impact is further strengthened with native top executives and directors via resource acquisition and social support. Results support the role of biculturalism in driving innovation, the innovation-performance link, and native leadership's moderating effect. The sample of young high-tech IPO firms in the United States included 108 founded by BIEs originating from 24 countries, with India, Israel, China, and Taiwan most represented.