How does TMT attention to innovation of Chinese firms influence firm innovation activities? A study on the moderating role of corporate governance

Shouming Chen, Miao Bu, Sibin Wu, Xin Liang

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83 Scopus citations

Abstract

Drawing on upper echelon theory, this study examines how TMT attention to innovation (TMTAI) influences a firm's innovation activities in China. We predict that the impact of executive attention to innovation on firm innovation activities is moderated by the characteristics of corporate governance. We develop and test hypotheses derived from the prediction using 1747 firm-year observations collected from 394 Chinese manufacturing companies over 6. years between 2006 and 2011. The results show that TMTAI is positively associated with a firm's patent application, and that the positive relationship is stronger when a firm is a private enterprise, has a large board, or has few independent directors.

Original languageEnglish (US)
Pages (from-to)1127-1135
Number of pages9
JournalJournal of Business Research
Volume68
Issue number5
DOIs
StatePublished - May 1 2015

Bibliographical note

Publisher Copyright:
© 2014 Published by Elsevier Inc.

Keywords

  • Corporate governance
  • Firm innovation
  • TMT attention to innovation
  • Upper echelons

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