TY - JOUR
T1 - Building innovation capability
T2 - The role of top management innovativeness and relative-exploration orientation
AU - Wang, Xinchun
AU - Dass, Mayukh
N1 - Publisher Copyright:
© 2017 Elsevier Inc.
Copyright:
Copyright 2017 Elsevier B.V., All rights reserved.
PY - 2017/7/1
Y1 - 2017/7/1
N2 - Firms strive to develop innovation capabilities that help them achieve competitive advantage in the marketplace. This paper shows that managers can contribute to firms’ innovation capabilities by involving themselves directly. Based on a unique multi-source (shareholder letters, COMPUSTAT, and World Bank Database) dataset covering 335 firms over nine years, empirical analysis reveals that top managers’ innovativeness makes them more likely to adopt exploration orientation over exploitation orientation in innovation. This relative-exploration orientation is a key mediator that can transform top managers’ innovativeness into better financial performance, and the effectiveness of this mediating role is contingent on a firm's resources and the industry environment.
AB - Firms strive to develop innovation capabilities that help them achieve competitive advantage in the marketplace. This paper shows that managers can contribute to firms’ innovation capabilities by involving themselves directly. Based on a unique multi-source (shareholder letters, COMPUSTAT, and World Bank Database) dataset covering 335 firms over nine years, empirical analysis reveals that top managers’ innovativeness makes them more likely to adopt exploration orientation over exploitation orientation in innovation. This relative-exploration orientation is a key mediator that can transform top managers’ innovativeness into better financial performance, and the effectiveness of this mediating role is contingent on a firm's resources and the industry environment.
KW - Content analysis
KW - Financial performance
KW - Innovation capability
KW - Relative-exploration orientation
KW - Shareholder letter
UR - http://www.scopus.com/inward/record.url?scp=85019028374&partnerID=8YFLogxK
U2 - 10.1016/j.jbusres.2017.03.019
DO - 10.1016/j.jbusres.2017.03.019
M3 - Article
AN - SCOPUS:85019028374
VL - 76
SP - 127
EP - 135
JO - Journal of Business Research
JF - Journal of Business Research
SN - 0148-2963
ER -