Biographies of Jeff Bezos often gloss over his early years in Albuquerque, New Mexico. While the Amazon founder lived there until his teens, the city is usually portrayed as a mere backdrop for his early entrepreneurial and scientific pursuits. But what if Albuquerque itself played a crucial role in shaping Bezos, rather than the other way around?
New research from George Mason University’s School of Business suggests that the culture of Bernalillo County, where Albuquerque is located, might be a breeding ground for innovative business leaders. The secret lies in its frontier history. For several decades during the peak of U.S. westward expansion (1790–1890), the county was within 100 kilometers of the frontier.
Shaping beliefs
“Frontier experience shapes local culture, fostering independence and risk-taking,” the researchers explain. “Such traits remain ingrained in the culture for a long time, possibly indefinitely.”
Research indicates that individualistic personality traits correlate with business success and high innovation performance. Much like frontiersmen, corporate innovators must venture into uncharted territory, defying conventional wisdom.
Previous studies on individualism in business focused on national or organizational cultures, limiting comparisons within the same country or company. To address this, researchers analyzed the birthplaces of 1,777 U.S.-born CEOs of S&P 1500 companies from 1992 to 2017.
Near the frontier
Using historical maps, they assessed how long these CEOs’ birth counties had been near the U.S. frontier. They discovered a positive link between a CEO’s individualistic cultural background and their firm’s innovation performance, measured by patent quantity and quality. This link strengthened the longer a CEO had lived in a post-frontier area.
The researchers accounted for the possibility of self-selection, where innovation-oriented firms might select individualistic CEOs. However, comparing firms’ innovation output before and after appointing an individualistic CEO showed a significant positive impact from the CEO’s influence.
Further analysis revealed that this innovation advantage stemmed from two main factors: a shift in corporate culture and an increase in the number of inventors on staff. CEOs from post-frontier backgrounds used more innovation-related language during investor calls and hired more inventors who registered patents for the company.
Urging caution
For investors and firms seeking the next Jeff Bezos, the study advises caution. “We did not include foreign CEOs in our research, which is significant given the percentage of new and first-generation immigrants among Fortune 500 CEOs,” the researchers note.
They also warn that innovation does not always translate directly into financial performance. “The link between innovation and shareholder value is complex and can take a long time to materialize. Not all innovations prove valuable, especially in the short term.”
Moreover, while individualism may boost innovation, it can have negative consequences. Bezos’s abrasive leadership style is a case in point.
Thus, while Bezos’s Albuquerque roots may be an overlooked factor in his success, they are not the sole predictor. The authors suggest that when individualistic CEOs benefit companies, it is due to factors like fostering an innovation-focused corporate culture and investing in human capital—traits that can be nurtured in leaders from any background.
Adopting a reverse-engineering approach to identify and promote behaviors typical of highly individualistic CEOs like Bezos could help firms leverage the benefits of individualism while mitigating its risks.
