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Top management team’s innovation-related characteristics and the firm’s explorative R&D: an analysis based on patent data

Author

Listed:
  • Chul Lee

    (Seoul National University)

  • Gunno Park

    (Samsung SDS)

  • Klaus Marhold

    (Seoul National University)

  • Jina Kang

    (Seoul National University)

Abstract

This study investigates the relationship between characteristics of the firm’s top management team (TMT) and its research and development (R&D) activities. Specifically, this research analyzes how observable characteristics of the TMT, such as functional experiences or educational background, and average tenure affect the firm’s proportion of explorative R&D activities. From the perspective of the upper-echelon theory, we hypothesize that the TMT’s functional experiences with R&D or science or engineering educational backgrounds increase the firm’s tendency towards explorative R&D. Moreover, we propose that the average tenure of TMT members with innovation-related experiences would have a positive moderation effects on these relationships. The hypotheses are tested using a dataset containing biographical information of the TMT members, financial, and patent data of 89 firms in U.S. high-tech industries from 2006 to 2009. Firm’s explorative R&D activities are analyzed using data on patent citations, patent classes, and non-patent references. The empirical analysis shows that the top managers’ educational background in science or engineering as well as their previous functional experiences with R&D have a positive effect on the firm’s explorative innovation activities. We also find that the size of these effects increases with a longer tenure of these TMT members. Our findings provide implications related to the effects of organizational characteristics on the establishment of a R&D strategy and highlight the role of TMT members with innovative experiences in directing a firm’s R&D activities and outcomes.

Suggested Citation

  • Chul Lee & Gunno Park & Klaus Marhold & Jina Kang, 2017. "Top management team’s innovation-related characteristics and the firm’s explorative R&D: an analysis based on patent data," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(2), pages 639-663, May.
    • Handle: RePEc:spr:scient:v:111:y:2017:i:2:d:10.1007_s11192-017-2322-1
    DOI: 10.1007/s11192-017-2322-1
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    2. Pan, Wenhui & Zhao, Pengwei & Qin, Chunxiu & Ding, Xianfeng, 2020. "How do new members affect the relationship between principal investigator’s network position and academic output of granted funds?," Evaluation and Program Planning, Elsevier, vol. 78(C).
    3. Saemundsson, Rögnvaldur & Candi, Marina & Sigurjonsson, Throstur Olaf, 2022. "The influence of performance feedback and top management team orientation on decisions about R&D in technology-based firms," Technovation, Elsevier, vol. 113(C).
    4. Tatiana Marceda Bach & Luciano Luiz Dalazen & Wesley Vieira da Silva & Alex Antonio Ferraresi & Claudimar Pereira da Veiga, 2019. "Relationship Between Innovation and Performance in Private Companies: Systematic Literature Review," SAGE Open, , vol. 9(2), pages 21582440198, June.
    5. Xing Gao & Keyu Zhai & Yue Qiu & Mengqiu Cao & Meiling Wu, 2020. "Innovation Institution and Spatial Transfer of Energy Industry: The Case of Jiangsu Province, China," SAGE Open, , vol. 10(1), pages 21582440199, January.
    6. Park, Gunno & Shin, Seungryul Ryan & Choy, Minkyung, 2020. "Early mover (dis)advantages and knowledge spillover effects on blockchain startups’ funding and innovation performance," Journal of Business Research, Elsevier, vol. 109(C), pages 64-75.
    7. Dao H. Duong & Fredric W. Swierczek, 2019. "The Impact of Top Management Team and Organizational Culture on Product/Service and Process Innovation in Vietnamese Banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 9(2), pages 1-3.
    8. Guo, Liying & Wang, Yang & Li, Meiling, 2024. "Exploration, exploitation and funding success: Evidence from junior scientists supported by the Chinese Young Scientists Fund," Journal of Informetrics, Elsevier, vol. 18(2).

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    More about this item

    Keywords

    R&D; Patent analysis; Innovation; Top management team; Exploration;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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