Management capability and innovation

Bill B. Francis, Iftekhar Hasan and Gokhan Yilmaz

This chapter investigates whether core competence of managers and their expansive (vs. specialized) managerial style affects firms' innovative ability, capacity, and efficiency. Using exogenous CEO departures as a natural experiment, it establishes a causal link between managerial capability and innovation. Importantly, it reveals that firms with talented managers receive significantly more nonself citations; make significantly lower self-citations and lesser citations to the others, indicating novel and explorative innovation achievements. Also, managers with higher general (specialized) ability are cited more (less) by patents from a wider range of fields. Lastly, career concern is identified as a mechanism linking higher ability and innovation.

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Year of publication:	2022
Authors:	Francis, Bill B. ; Hasan, Iftekhar ; Yilmaz, Gokhan
Published in:	Empirical research in banking and corporate finance. - Bingley, U.K. : Emerald Publishing Limited, ISBN 978-1-78973-397-6. - 2022, p. 29-74
Subject:	R&D \| Managerial ability \| innovation \| innovative efficiency \| patents \| core competence \| Innovation \| Kernkompetenz \| Core competency \| Patent \| Innovationsmanagement \| Innovation management \| Führungskräfte \| Managers

Type of publication:	Article
Type of publication (narrower categories):	Aufsatz im Buch ; Book section
Language:	English
Other identifiers:	10.1108/S1569-373220220000021002 [DOI]
Source:	ECONIS - Online Catalogue of the ZBW

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