Immigrant founder chief executive officers, firm innovation, and performance: The role of cultural distance and top management team and board social capital

Drawing upon social cognitive and learning theories and social embeddedness perspective, we develop a conceptual framework for exploring the impact of immigrant founder chief executive officers on firm performance through firm innovation. We propose that immigrant founder chief executive officers are more likely to lead their firm with an innovative mentality due to their biculturalism, thus enhancing firm innovation and performance. We suggest that the impact of immigrant founder chief executive officers on firm innovation is moderated by cultural distance such that moderate cultural distance results in greater innovation, and ultimately, performance. We also indicate that top management team and board members' local social capital, as well as immigrant founder chief executive officers' foreign social capital, enhance the proposed relationships. A discussion of the relationships, limitations, and future research directions is provided.