Xi Zhong, Tiebo Song and Weihong Chen
The authors aim to discuss the impact of research and development (R&D) internationalization on emerging market enterprises' (EMNEs') innovation efficiency, as well as the…
Abstract
Purpose
The authors aim to discuss the impact of research and development (R&D) internationalization on emerging market enterprises' (EMNEs') innovation efficiency, as well as the moderating effects of top management team (TMT) human capital.
Design/methodology/approach
The authors empirically tested the hypotheses based on Chinese listed manufacturing company data from 2008 to 2017.
Findings
R&D internationalization helps to increase EMNEs' innovation efficiency. Incorporating TMT human capital into this framework, the authors found that international experience, education level and technical background would all strengthen the above relationship.
Originality/value
First, the authors contribute to the R&D internationalization literature by providing the first empirical evidence that R&D internationalization will influence EMNEs' innovation efficiency. Second, this study enriches the research results on the driving factors of enterprise innovation efficiency and expands the related research results on the relationship between R&D internationalization and production efficiency. Third, the research highlights the prominent position of TMT human capital in the relationship between R&D internationalization and EMNEs' innovation efficiency, which strengthens the contextual characteristics of the “R&D internationalization-innovation performance” framework.
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Xi Zhong, Tiebo Song and Liuyang Ren
Based on the socioemotional wealth theory, this study aims to empirically investigate how founder reign, that is a founder serving as a cheif executive officer (CEO) or chairman…
Abstract
Purpose
Based on the socioemotional wealth theory, this study aims to empirically investigate how founder reign, that is a founder serving as a cheif executive officer (CEO) or chairman, influences family firms' research and development (R&D) investment in emerging economies (e.g. China).
Design/methodology/approach
This study empirically tested the hypotheses based on a sample of listed Chinese family companies from 2008 to 2018.
Findings
Founder reign has a negative impact on family firms' R&D investment. Particularly, the negative impact of the founder serving as chairman on family firms' R&D investment is larger than the negative impact of the founder serving as CEO on family firms' R&D investment. Founder's military experience weakens the negative impact of founder reign on family firms' R&D investment, but founder's executive master of business administration (E)MBA experience has no moderating effect on this relationship.
Originality/value
First, the authors contribute to the family firm innovation literature by providing an alternative but complementary explanation of why family firms have relatively low R&D investment levels. This research shows that founder reign is a key reason for family firms in China eschewing R&D investment. Second, by incorporating the founder serving as CEO and the founder serving as chairman into the analytical framework, and then examining their impact on family firms' R&D investment, our research helps us to fully understand the impact of founder reign on firm strategic actions. Third, we contribute to the “founder reign-firm strategic actions” framework by revealing how founders' human capital profoundly affects the relationship between founder reign and family firms' R&D investment.
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Yujiao Chen, Rui Li and Tiebo Song
Corporate digital transformation (DT) and top management team (TMT) internationalization seem to be concomitant phenomena in recent years, the former is a major change and a…
Abstract
Purpose
Corporate digital transformation (DT) and top management team (TMT) internationalization seem to be concomitant phenomena in recent years, the former is a major change and a thorough transformation requiring continuously new technologies and ideas. Excitingly, the latter shows a relatively broad vision, a large risk appetite and interest in new things. Does TMT internationalization promote DT? This question is essential for DT. Given that, this article will aim to discuss and examine whether and how TMT internationalization affects corporate DT.
Design/methodology/approach
This article takes China's A-share listed manufacturing companies from 2011 to 2019 as a sample. The quantitative text analysis method is used to measure attention related to digitalization. This paper discusses: (1) The decision-making logic and cognitive process mechanism of “TMT internationalization–attention related to digitalization–corporate DT”. (2) The moderating effect of shared corporate mission of the TMT on the cognitive process of decision-making, that is, the social process of transforming individual cognition into team cognition, and the social process of transforming team cognition into corporate decision-making.
Findings
TMT internationalization promotes DT. As an external manifestation of team cognition, attention plays a positive role as an intermediary mechanism. Specifically, executives with overseas experience have higher urgency assessment and manageable assessment, thus affecting their attention to digitalization positively, thereby promoting DT. This article does not demonstrate the moderating effect of shared corporate mission on the cognitive process, but it promotes DT directly, and only plays a role in the precognitive stage.
Originality/value
This article is the first one to study the relationship between TMT internationalization and corporate DT, which has practical guiding significance for DT and the “going out” strategies of the TMT. Also, the combination of upper echelons theory and cognitive theory opens up the black box of the strategic process. Lastly, this research explores the formation process of team cognition, which is always neglected by previous studies of the TMT demographic characteristics.