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Commitment to Innovation: The Impact of Top Management Team Characteristics
Author(s) -
Daellenbach Urs S.,
McCarthy Anne M.,
Schoenecker Timothy S.
Publication year - 1999
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/1467-9310.00130
Subject(s) - diversification (marketing strategy) , business , perception , marketing , team management , structural equation modeling , industrial organization , psychology , management , economics , neuroscience , statistics , mathematics
Many organizational and environmental factors influence a firm’s commitment to innovation. Among the organizational factors, the perceptual lens of the top management team and the team’s dynamics are posited to have a significant direct impact on the firm’s commitment to innovation. This study revisits the classic arguments of Hayes and Abernathy and empirically examines several of their propositions. The results clearly indicate a positive relationship between the technical orientation of the TMT/CEO and above‐average R&D intensity. This effect remains even after controlling for the impact of performance in prior periods and firm diversification. Overall, these results suggest that establishing a high level of commitment to innovation will be promoted or impeded in many organizations because of the predispositions of the CEO and top management team.