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Commitment to Innovation: The Impact of Top Management Team Characteristics

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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.
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Document Type: Original Article

Affiliations: 1: School of Business and Public Management, Victoria University of Wellington, Wellington, New Zealand, 2: Department of Management, Colorado State University, Fort Collins, CO, USA, 3: Department of Management, Southern Illinois University at Edwardsville, Edwardsville, IL, USA

Publication date: 1999-07-01

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