The antecedents of innovation performance: the moderating role of top management team diversity

2019 ◽  
Vol 14 (2) ◽  
pp. 291-311 ◽  
Author(s):  
Peng-Yu Li ◽  
Kuo-Feng Huang
Keyword(s):  
Critical Role ◽  
Innovation Process ◽  
International Diversification ◽  
Top Management Teams ◽  
Innovation Performance ◽  
Top Management ◽  
Content Type ◽  
D Investment ◽  
Educational Diversity

PurposeThe purpose of this paper is to investigate why firms engaged in R&D investment and international diversification produce different results in innovation performance.Design/methodology/approachThis study is based on a sample of 283 Taiwanese manufacturing firms in the information technology industry.FindingsThe findings showed that in the top management teams (TMTs) with greater tenure diversity there was a stronger relationship between R&D investment and innovation performance. In addition, the TMTs with greater educational diversity enhanced the relationship between international diversification and innovation performance.Originality/valueThis study stresses the vital role of TMT diversity in resource allocation and information processing during the process of innovation. The authors examined the critical role of TMT educational diversity in bringing a wider range of network resources and the role of TMT tenure diversity in the allocation of firm-specific resources. The TMT diversity causes firms to experience different innovation results during the innovation process.

Is top-management remuneration influenced by board characteristics?

2015 ◽  
Vol 23 (1) ◽  
pp. 60-79 ◽  
Author(s):  
Sebastien Deschenes ◽  
Hamadou Boubacar ◽  
Miguel Rojas ◽  
Tania Morris
Keyword(s):  
Corporate Governance ◽  
Academic Research ◽  
Top Management Teams ◽  
Top Management ◽  
Management Compensation ◽  
Content Type ◽  
Board Characteristics ◽  
Good Corporate Governance

Purpose – The purpose of this article is to examine if certain board characteristics have an impact on the total remuneration of top management and the ratio of stock-based remuneration to total top-management remuneration. Design/methodology/approach – The study draws on data from the largest public Canadian companies, the constituents of the TSX/60 index. The study controls for firm size and profitability. Findings – The authors concludes that total remuneration of top management is directly linked to board-member total remuneration and the board average number of director-tenure years. The study also shows that the ratio of stock-based to total top-management remuneration is positively affected by the percentage of independent directors, total remuneration of board directors, the ratio of stock-based remuneration of directors to their total remuneration and the average number of tenure years of the board of directors. Practical implications – If regulators are determined to curb the excesses in top-management remuneration by means of promoting boards with certain characteristics, they should implement measures facilitating the control of directors’ remuneration and tenure, to discourage cronyistic behavior. Good corporate governance requires that the board act as a counterbalance to top management, ensuring that a substantial percentage of top-executive total compensation is variable, and not fixed. According to our findings, the boards that are the most likely to hold managerial avoidance of variable pay in check are those favoring director independence, variable director remuneration and longer director tenures. Social implications – The present article examines specifically the latter aspect, namely, the role of board characteristics (independence, size, compensation, board director ownership and tenure, etc.) in the determination of top-management compensation. This relationship is important because it allows us to further the analysis of corporate governance. If the above-mentioned traits of boards have a meaningful relationship with the compensation of the top management, one might conclude that certain practices in the composition of boards could influence good corporate governance practices. This is relevant for regulatory agencies, for investors and for corporations. Originality/value – The article adds to the extant literature in a number of ways. Firstly, it considers the role of the traits of the board in the determination of the compensation of the top-management teams, and not only of the chief executive officer, as is the focus of previous literature. Secondly, the article focuses on the power interplay between boards and managers, and, more particularly, on the ability of boards to be an effective mechanism of corporate governance. Finally, the article examines the potential impact of board traits in the determination of top-management compensation in the context of Canadian firms, a subject that has received less attention from academic research, which has mostly concentrated on analyzing the issue in the US context.

Corporate entrepreneurship strategy: an analysis of top management teams in SMEs

2018 ◽  
Vol 13 (4) ◽  
pp. 528-543 ◽  
Author(s):  
Asghar Afshar Jahanshahi ◽  
Khaled Nawaser ◽  
Alexander Brem
Keyword(s):  
Cultural Intelligence ◽  
Corporate Entrepreneurship ◽  
Top Management Teams ◽  
Future Research ◽  
Top Management ◽  
Ambiguity Tolerance ◽  
The South ◽  
Content Type ◽  
East Of Iran

Purpose In order to learn more about the antecedents of strategy at the top management team’s (TMT) level, the purpose of this paper is to investigate the effects of TMT cultural intelligence on corporate entrepreneurship strategy. Then, the authors examine how TMT’s ambiguity tolerance mediates this relationship. Design/methodology/approach The authors tested the hypothesis by collecting survey data from 41 TMTs of small- and medium-sized enterprises in the south-east of Iran. Findings The survey results confirm that a high level of cultural intelligence in TMTs is conducive to corporate entrepreneurship. Furthermore, the result shows that higher levels of cultural intelligence in TMTs relate to a higher level of ambiguity tolerance, which, in turn, enhances the possibility of pursuing corporate entrepreneurship strategy by SMEs. Research limitations/implications The data for this study were obtained from 41 TMTs in the south-east of Iran, which increases the probability that the results may not be directly transferable to certain companies in Western countries. Future research might attempt to test the ideas developed in this paper across different settings and samples. Originality/value Several theoretical and empirical studies have explored possible antecedents of corporate entrepreneurship. But a few papers investigated the role of TMT dispositions on corporate entrepreneurship strategy. By addressing the prominent role of TMT psychological dispositions on corporate entrepreneurship strategy, this paper attempts to fill this gap.

The role of the upper echelon in the value chain management

2014 ◽  
Vol 24 (3) ◽  
pp. 240-255 ◽  
Author(s):  
Arpita Agnihotri
Keyword(s):  
Value Chain ◽  
Emerging Market ◽  
Secondary Data ◽  
Top Management Teams ◽  
Top Management ◽  
Tobit Regression ◽  
Upper Echelon ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this study was to analyze the impact of top management teams on firms' value chain action intensity and value chain activity heterogeneity. Design/methodology/approach – The study was conducted from an emerging market perspective. The sample was based on the secondary data collected from three fast-growing industries in India: automobile, pharmaceutical and fast-moving consumer goods over the three-year period from 2009 to 2012. The Panel Poisson and Tobit regression have been used to conduct this study. Findings – Drawing upon the upper echelon theory, the author found that a top management team's educational level, functional heterogeneity and total organizational tenure influence value chain action intensity and value chain activity heterogeneity. Originality/value – The author introduces the concept of value chain action intensity and value chain action heterogeneity and investigates the role of the upper echelon in influencing intensity and heterogeneity.

The effect of the social network of the top management team on innovation in cultural and creative industries

2019 ◽  
Vol 10 (1/2) ◽  
pp. 4-18 ◽  
Author(s):  
Hao Jiao ◽  
Yupei Wang ◽  
Minjia Liu
Keyword(s):  
Social Network ◽  
Organizational Learning ◽  
Top Management Teams ◽  
Creative Industries ◽  
Innovation Performance ◽  
Top Management ◽  
Content Type ◽  
Practical Operation ◽  
The Social ◽  
Cultural And Creative Industries

Purpose The purpose of this study is to explore how the influence of the social network of the members of top management teams affects the firms’ innovation performance through organizational learning in cultural and creative industries in China. Design/methodology/approach Based on cultural and creative industries, this paper focuses on how the social network of members of top management teams affects innovation through organizational learning. Using upper Echelon theory and social capital theory, the paper puts forward the relationship between the top management team’s social network, organizational learning and innovation performance. Findings Drawing on the paradigm of organizational strategy duality (input-process-output), this paper constructs the conceptual model of “relational network – organizational learning − innovative performance” and attempts to reveal the relationship between the network, represented by the senior management network and organizational learning, and the mechanism behind their role in innovation performance. Finally, future research prospects are explored. Research limitations/implications Based on the analysis of the internal mechanism between the top management team network, organizational learning and innovation performance, the influence mechanism framework for the cultural and creative industries’ executive team social network on enterprise innovation is finally obtained, which provides theoretical guidance and a practical operation path for enterprise management innovation. Originality/value This research makes a theoretical contribution to the duality of organizational strategy and provides a practical operation path for enterprises to build a social network, and thereby promote innovation capabilities.

Antecedents of demand-side search in servitization of manufacturing firms: the critical role of service-oriented HRM practices and market capability

2019 ◽  
Vol 34 (8) ◽  
pp. 1827-1838 ◽  
Author(s):  
Beilei Dang ◽  
Wenhong Zhang ◽  
Silei Chen ◽  
Taiwen Feng ◽  
Yapu Zhao
Keyword(s):  
Critical Role ◽  
Manufacturing Firms ◽  
Top Management ◽  
Management Service ◽  
Demand Side ◽  
Subjective Data ◽  
Content Type ◽  
Hrm Practices ◽  
Service Oriented

Purpose The purpose of this paper is to explore the antecedents of demand-side search in service strategy of manufacturing firms. In particular, this study examines whether service-oriented human resource management (HRM) practices promote demand-side search by enhancing firms’ market capability as well as how top management service commitment and service organizing moderates this relationship in manufacturing firms. Design/methodology/approach To test this research model, this study obtains survey data from two distinct informants of 279 manufacturing firms in China. Data were collected applying a standard questionnaire in a five-point Likert scale. The hypotheses are tested using hierarchical regression analysis and partial least squares. Findings Results show that service-oriented HRM practices can promote demand-side search by enhancing firms’ market capability. Furthermore, it is found that top management service commitment negatively moderates the relationship between service-orientated HRM practices and demand-side search, while service organizing positively moderates this relationship. Research limitations/implications Depending on cross-sectional subjective data for the core variables and the choice of Chinese manufacturing firms limit the capacity to generalize the findings. Practical implications This research suggests that service-oriented HRM practices are important drivers of demand-side search activities and to take advantage of service-oriented HRM practices, firms should commit to market capability development. In addition, it is better to match service-oriented HRM practices with other service-oriented organizational parameters such as top management service commitment and service organizing. Originality/value The study highlights the crucial role of service-oriented HRM practices in demand-side search, the mediating role of market capability and the moderating role of other service-oriented organizational parameters such as top management service commitment and service organizing. This study advances research on knowledge search, servitization and strategic HRM.

Top management teams’ managerial resources and international diversification

2017 ◽  
Vol 55 (9) ◽  
pp. 1999-2017 ◽  
Author(s):  
Peng-Yu Li ◽  
Fang-Yi Lo
Keyword(s):  
Negative Impact ◽  
Interactive Effect ◽  
International Diversification ◽  
Educational Background ◽  
International Experience ◽  
Top Management Teams ◽  
Management Teams ◽  
Top Management ◽  
Content Type ◽  
Managerial Resources

Purpose The purpose of this paper is to incorporate the resource-based perspective with upper echelon theory to examine the effect of top management teams’ (TMTs) managerial resources on international diversification. Design/methodology/approach The authors sampled 360 listed companies in the USA that operated in the information technology industry in 2009, the year after the financial crisis. Findings The findings show that TMTs’ tenure has a negative impact on international diversification but international experience exerts a positive impact on international diversification. Furthermore, TMTs’ educational background diversity and international experience contribute to a reduction in the negative effect of tenure on international diversification. Originality/value Prior studies have investigated the role of TMT in international diversification, but they pay less attention to the interactive effect of the variety of managerial resources on international diversification. In particular, the authors examined the effect of a variety of management resources on the level of international diversification under the uncertain environment.

The role of accounting for managing innovation processes when relationships matter

IMP Journal ◽  
2017 ◽  
Vol 11 (1) ◽  
pp. 7-24 ◽  
Author(s):  
Johnny Lind
Keyword(s):  
Critical Role ◽  
Accounting Information ◽  
Innovation Process ◽  
Business Networks ◽  
Content Type ◽  
Stability And Instability ◽  
Software Release ◽  
Innovation Processes

Purpose This paper studies how accounting information is used by actors in an innovation process. It investigates how accounting information influences and is influenced by the different actors. The purpose of this paper is to develop a more thorough understanding of the role of accounting in making the choices that form temporary solutions. Design/methodology/approach An in-depth case study of the development of a standard software release within the telecom industry. Findings This study has shown that accounting was a key ingredient when temporary solutions were formed in the innovation processes. Actors used accounting to stabilize the content of the release in the formation of the gate documents and used accounting to destabilize the content between the temporary solutions. It is difficult to evaluate whether the use of accounting improved or harmed the innovation. Further, the study also revealed that the use of accounting influenced and was influenced by previous and prospective future deals. This put new challenges on the use of accounting because it involved negotiation processes that influenced the accounting figures. Practical implications The findings provide insights into the procedures for finding temporary solutions in the innovation process and the role of accounting in these procedures. Originality/value This paper contributes by providing a more thorough understanding of the role of accounting regarding the choices that comprise the temporary solutions within the innovation process. In addition, it shows how accounting has a critical role both for settling on and modifying temporary solutions. Hence, the research demonstrated how studies of the role of accounting in innovation processes can contribute to the industrial network approach by giving a more thorough understanding of network dynamics and the process of attaining stability and instability in business networks.

Accessing resources for service innovation – the critical role of network relationships

2014 ◽  
Vol 25 (1) ◽  
pp. 2-29 ◽  
Author(s):  
Helena Rusanen ◽  
Aino Halinen ◽  
Elina Jaakkola
Keyword(s):  
Critical Role ◽  
Service Innovation ◽  
Innovation Process ◽  
Research Strategy ◽  
Future Research ◽  
Theoretical Understanding ◽  
Resource Access ◽  
Content Type ◽  
External Resources ◽  
Different Types

Purpose – This paper aims to explore how companies access resources through network relationships when developing service innovations. The paper identifies the types of resource that companies seek from other actors and examines the nature of relationships and resource access strategies that can be applied to access each type of resource. Design/methodology/approach – A longitudinal, multi-case study is conducted in the field of technical business-to-business (b-to-b) services. An abductive research strategy is applied to create a new theoretical understanding of resource access. Findings – Companies seek a range of resources through different types of network relationships for service innovation. Four types of resource access strategies were identified: absorption, acquisition, sharing, and co-creation. The findings show how easily transferable resources can be accessed through weak relationships and low-intensity collaboration. Access to resources that are difficult to transfer, instead, necessitates strong relationships and high-intensity collaboration. Research limitations/implications – The findings are valid for technical b-to-b services, but should also be tested for other kinds of innovations. Future research should also study how actors integrate the resources gained through networks in the innovation process. Practical implications – Managers should note that key resources for service innovation may be accessible through a variety of actors and relationships ranging from formal arrangements to miscellaneous social contacts. To make use of tacit resources such as knowledge, firms need to engage in intensive collaboration. Originality/value – Despite attention paid to network relationships, innovation collaboration, and external resources, previous research has neither linked these issues nor studied their mutual contingencies. This paper provides a theoretical model that characterizes the service innovation resources accessible through different types of relationships and access strategies.

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