Innovation: Early Leadership and Age Dynamics -Evidence from Chinese SMEs

This study investigates the relationship between early leadership experiences and innovation performance in small and medium-sized enterprises (SMEs) in China. Using Enterprise Survey for Innovation and Entrepreneurship in China (ESIEC) cross-sectional datasets, it examines the mediating role of psychological traits and how age moderates this relationship. The analysis employs fixed effects models to control for regional and industry-specific unobserved characteristics. Results indicate a significant positive relationship between early leadership experiences and innovation,with psychological traits mediating this relationship strongly in younger entrepreneurs. For older entrepreneurs, early leadership has a more direct and stronger shape on innovation. These findings underscore the importance of early leadership development in the education phase and suggest that the relationship and pathways evolve with age, offering novel insights into the formation and application of social and human capital in the entrepreneurial journey.