Collaborative culture and total factor productivity: empirical evidence from agricultural listed companies in China

Abstract

Purpose This study provides the first systematic analysis of the causal impact of corporate collaborative culture on the Total Factor Productivity (TFP) of agricultural firms in China. While traditional TFP drivers are well-understood, their efficacy is often blunted by the agricultural sector's unique structural frictions. In such an environment, where formal mechanisms are incomplete, informal institutions like corporate culture become critical, yet under-examined, determinants of economic performance. Design/methodology/approach We construct a novel CollabCulture index by applying unsupervised machine learning (Word2Vec) to the textual data from the annual reports of Chinese agricultural listed companies (2001–2020). To address endogeneity and establish a causal link, we employ a robust instrumental variable strategy using regional clan culture as an instrument for corporate collaborative culture. Findings We find that a stronger collaborative culture has a significant and positive causal effect on firm-level TFP. The heterogeneity analysis reveals that this effect is more pronounced among smaller, non-state-owned firms and those that have not adopted digital technologies, suggesting that culture can act as a crucial substitute for formal resources. Mechanism tests confirm that collaborative culture enhances firm-level TFP by strengthening the firm's information environment and alleviating financing constraints. Originality/value By quantifying a previously overlooked dimension of informal institutions, this study provides new, causal evidence on its role in driving productivity in a critical sector where formal institutions are weak. Our findings enrich the research on the determinants of firm-level TFP in agriculture and offer a more distinct, culture-based perspective for both theory and policy.