From Ecological Culture to Green Innovation: The Role of Ethnic Minority Corporate Leaders in China

ABSTRACT Do ecological values embedded in ethnic cultures influence the environmental strategies of corporate leaders and their firms' green innovation? We examine this question in China's multiethnic context, where distinct ecological traditions across ethnic groups create sharp cultural contrasts that can be traced into leadership composition and firm‐level innovation. Using 33,508 firm‐year observations from 2010 to 2023, we find that firms led by ethnic minority leaders are more likely to engage in green innovation, with the effect strengthening as the number of minority leaders increases. Mediation analysis shows that this effect operates through a green strategy channel, whereby leaders shape environmentally oriented strategic choices that drive green innovation output. The effect is stronger when leaders are older, have longer tenure, are female, and hold board positions, and is also amplified in more polluting and more competitive industries and under stronger governance and stakeholder monitoring. Overall, our findings suggest that ecological values embedded in ethnic cultures can serve as a strategic resource, with important implications for leadership selection, corporate sustainability strategies, and policies aimed at promoting green innovation.