Corporate governance in early-stage high-tech ventures: the impact of top management team and outside board human capital on innovation speed

This paper examines the impact that the educational level of a company's outside directors and top management team (TMT) has on the firm's commitment to innovation and its innovation outcomes. A 13-year study of 17 pharmaceutical companies was conducted. The results show that TMT demographics are significant predictors of commitment to innovation, while the demographics of outside directors predict outcomes in innovation. The future research opportunities of these findings are discussed.

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Generalist versus specialist CEO and R&D commitment: evidence from an emerging market

Journal of Management & Organization ◽

10.1017/jmo.2021.7 ◽

2021 ◽

pp. 1-17

Author(s):

Arpita Agnihotri ◽

Saurabh Bhattacharya

Keyword(s):

Human Capital ◽

Boundary Conditions ◽

Chief Executive Officer ◽

Emerging Market ◽

Top Management Team ◽

Chief Executive ◽

Management Team ◽

Top Management ◽

The Impact ◽

Educational Diversity

Abstract Leveraging the human capital specificity and the Chief Executive Officer (CEO)–top management team (TMT) interface literature, this study explores the impact of generalist versus specialist CEOs on R&D commitments by Indian firms under the boundary conditions of TMTs' functional and educational diversity. Based on a sample of 253 firms over a period of 6 years, in contrast to previous studies, our findings suggest that specialist CEOs are more likely to invest in R&D than generalist CEOs; however, when supported by functionally and educationally diverse TMT, the R&D commitment of generalist CEOs increases as well.

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Top management team and IPO firms’ acquisition activity

Management Decision ◽

10.1108/md-02-2015-0059 ◽

2016 ◽

Vol 54 (3) ◽

Cited By ~ 7

Author(s):

Fariss T Mousa ◽

Sang Kyun Kim ◽

Mathew Rutherford

Keyword(s):

Design Methodology ◽

Strategic Behavior ◽

Top Management Team ◽

Management Team ◽

High Tech ◽

Top Management ◽

Public Firms ◽

Management Positions ◽

The Impact

Purpose This study explores the role of the top management team (TMT) in determining whether IPO firms in high-tech industry will engage in acquisitions during the post-IPO period Design/methodology/approach We collect IPO and TMT data from firm prospectuses, and acquisition and financial data from SDC Platinum and Compustat, respectively. Poisson regression analysis is applied to test the effect of TMT characteristics on acquisition activity. Findings Using 135 IPO firms, we find evidence that TMT composition directly influences acquisition activity of IPO firms during the post-IPO period. Specifically, we find that TMT experience serving as members other firms’ boards and TMT experience in senior level management positions are both positively associated with acquisition activity. TMTs with prior IPO experience and TMTs with longer organizational tenures are negatively associated with acquisition activity. Originality/value This study is among the first to examine the impact of TMT demography on newly public firms’ acquisition activity. In doing so, it adds meaningfully to our understanding of the factors driving such firms’ strategic behavior.

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The Influence of Top Management Team Human Capital on Sustainable Business Growth

Frontiers in Psychology ◽

10.3389/fpsyg.2021.773689 ◽

2021 ◽

Vol 12 ◽

Author(s):

Yaoping Shen ◽

Qian Zheng ◽

Xinghui Lei ◽

Fengpei Hu

Keyword(s):

Decision Making ◽

Human Capital ◽

Top Management Team ◽

Management Team ◽

Mediating Effect ◽

Top Management ◽

Business Growth ◽

Sustainable Business ◽

The Impact ◽

The Relationship

Traditionally, enterprises have subscribed to the belief that top management team (TMT) human capital is of great influence to a specific entity. While long being a question of interest in the field of management, the extant literature rarely discusses the impact of TMT human capital on sustainable business growth. By examining data obtained from 535 TMT members of private enterprises in Zhejiang Province PRC, and investigate the mediating effect of decision-making quality as well as the moderating effect of founder characteristics, we analyze the positive operating mechanisms of TMT human capital on sustainable business growth. Interestingly, the single most striking observation to emerge from the empirical investigation was: (1) TMT human capital has a significant positive impact on sustainable business growth; (2) decision-making quality fully mediates the relationship between TMT human capital and sustainable business growth; and (3) the more open-minded the founders, the stronger the mediating effect of decision-making quality in the relationship between TMT human capital and sustainable business growth. This research has expanded the perspective and scope of the research on TMT human capital, and its practical usage is discussed.

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