Does managerial ability facilitate corporate innovative success

By Yangyang Chen, Edward J. Podolski, Madhu Veeraraghavan. 2015

217 citations recorded by the source corpus.

This paper examines whether managerial ability facilitates corporate innovative success. First, we show that managerial ability is positively associated with innovative output. Second, we show that the positive association between managerial ability and innovative output is weaker for older CEOs and managers who stay in the same job for longer, suggesting a preference for a ‘quiet life’ by long serving CEOs. Third, we find that the equity market values patents generated by more able managers more positively, suggesting that equity holders deem better skilled managers more effective at converting innovative ideas into valuable new products. Finally, we show that managerial ability is positively associated with more ‘radical’ innovations, which are outside of the firm's knowledge base. Overall, our results suggest that managerial ability is an essential component of corporate innovative success.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/ca6bfb8a941065f919a9a55715c6f610c9d3360c

Citations in the corpus

• Managerial foreign experience and corporate innovation (2018, unknown): “3.3.1 Dependent variable: Innovation AC C EP TE D M AN U SC R IP T Following prior studies (e.g., Chen et al., 2015), we employ two measures of innovation, which are both patent-based metrics.”