Hostname: page-component-78c5997874-ndw9j Total loading time: 0 Render date: 2024-11-11T00:13:46.998Z Has data issue: false hasContentIssue false
  • English
  • Français

CEO Values, Firm Long-Term Orientation, and Firm Innovation: Evidence from Chinese Manufacturing Firms

Published online by Cambridge University Press:  26 December 2019

Wei Zheng ,
Rui Shen ,
Weiguo Zhong Open the ORCID record for Weiguo Zhong [Opens in a new window]  and
Jiangyong Lu
Wei Zheng
Affiliation:
University of International Business and Economics, China
Rui Shen*
Affiliation:
Zhejiang University, China
Weiguo Zhong
Affiliation:
Peking University, China
Jiangyong Lu
Affiliation:
Peking University, China
*
Corresponding author: Rui Shen (ruishen@zju.edu.cn)
Get access Rights & Permissions [Opens in a new window]

Abstract

Innovation contributes to a firm's long-term competitive advantages but also involves significant risk and uncertainty. As agency theory predicts, CEOs are self-interested and risk-averse, and thus are reluctant to engage in innovation investments. However, the extent to which CEOs are self-interested and the mechanisms through which self-interested CEOs affect firm innovation have not been empirically tested. To fill this gap, we propose that CEOs possess a mix of both self-preserving and other-regarding motives, and build a mediation model in which CEO values affect firm innovation via firms’ long-term orientation. Based on a three-phase (from 2014 to 2016) survey of 436 Chinese manufacturing firms, we find that CEOs with high self-regarding values reduce innovation efforts and performance by damaging a firm's long-term orientation. Moreover, CEO tenure, CEO duality, and environmental uncertainty weaken the relationship between CEO values and firm innovation via long-term orientation. Our study enriches the innovation literature by extending the basic assumptions of agency theory and by providing empirical evidence to determine whether and how self-regarded CEOs affect firm innovation.

摘要

摘要

创新是企业竞争优势的重要来源，同时也是一种高风险、高不确定性的活动。代理理论普遍认为，CEO出于保护个人利益及规避风险的考虑在创新投资上往往较为慎重。然而，CEO在利己程度上是否存在差异、该差异通过何种机制影响企业创新却并未得到实证检验。针对上述研究不足，本文提出，CEO可能兼具利己/利他主义两种价值观，CEO价值观会通过影响企业长期导向战略来影响企业创新。基于对中国436家制造业企业持续三轮的跟踪调查数据，我们发现，CEO利己主义价值观会阻碍企业创新，企业长期导向在CEO价值观与企业创新之间起到了中介作用，即CEO利己主义价值观通过削弱企业长期导向阻碍创新；同时，CEO任期越长、CEO职务双重性、环境不确定性越高，CEO利己主义价值观对企业创新的间接影响越小。本文丰富了创新领域的相关研究，拓展了代理理论的基本假设，同时提供了CEO价值观与企业创新间关系的实证证据。

Аннотация

АННОТАЦИЯ

Инновации вносят большой вклад в долгосрочные конкурентные преимущества компании, но также содержат в себе значительный риск и неопределенность. Согласно теории агентских отношений, генеральные директора действуют исходя из личных интересов и не склонны к риску, и поэтому неохотно способствуют инвестициям в инновации. Тем не менее, до сих пор не существует эмпирических исследований того, в какой степени генеральные директора действуют под руководством личных интересов, а также механизмов, посредством которых корыстные директора влияют на инновации в компании. Чтобы заполнить этот пробел в научной литературе, мы предполагаем, что генеральные директора действуют под влиянием мотивов самосохранения и внимания к окружающим, и строим модель посредничества, в которой ценности генерального директора влияют на инновации в компании посредством долгосрочной ориентации. На основании трехэтапного (с 2014 по 2016 гг.) опроса, в котором участвовали 436 китайских производственных компаний, мы обнаружили, что директора с высокой степенью эгоизма снижают эффективность инноваций, нанося ущерб долгосрочной ориентации компании. Более того, срок пребывания в должности генерального директора, двойственная роль генерального директора и неопределенность во внешней среде ослабляют влияние ценностей генерального директора на инновации в компании посредством долгосрочной ориентации. Наше исследование обогащает литературу по инновациям, расширяя основные положения теории агентских отношений и предоставляя эмпирические данные для исследования того, каким образом корыстные директора влияют на инновации в компании.

Resumen

RESUMEN

La innovación contribuye a las ventajas competitivas de largo plazo pero también implica riesgo e incertidumbre considerables. Como la teoría de la agencia predice, los CEO tienen intereses propios y son adversos al riesgo, y por esto son reacios a participar de inversiones en innovación. Sin embargo, el alcance del cuál los CEO tienen intereses propios y los mecanismos mediante los cuales los CEO interesados en sus propios intereses afectan la innovación de la empresa no han sido probados empíricamente. Para llenar este vacío, proponemos que los CEO poseen una mezcla de auto-preservación y motivos respecto a otros, y construimos un modelo de mediación en el cual los valores del CEP afectan la innovación empresarial mediante la orientación de la empresa de largo plazo. Con base en una encuesta en tres fases (de 2014 a 2016) a 436 empresas manufactureras chinas, encontramos que los CEP con altos valores respecto a si mismos reducen los esfuerzos de innovación y desempeño al dañar la orientación de largo plazo de la empresa. Por otra parte, la titularidad del CEO, la dualidad del CEO, y la incertidumbre ambiental debilitan la relación entre los valores del CEO y la innovación de la empresa a través de una orientación a largo plazo. Nuestro estudio enriquece la literatura de innovación al extender los supuestos básicos de la teoría de la agencia y al proporcionar evidencia empírica para determinar si y cómo los CEO centrados en si mismos afectan la innovación de la empresa.

Keywords

CEO dualityCEO tenureCEO valuesenvironmental uncertaintyfirm innovationlong-term orientationCEO价值观长期导向企业创新CEO任期CEO职务双重性环境不确定性двойственная роль генерального директорасрок полномочий генерального директораценности генерального директоранеопределенность во внешней средеинновации в компаниидолгосрочная ориентацияdualidad del CEOtitularidad del CEOvalores del CEOincertidumbre ambientalinnovación empresarialorientación de largo plazo
Type
Article
Information
Management and Organization Review , Volume 16 , Issue 1 , February 2020 , pp. 69 - 106
Copyright
Copyright © 2019 The International Association for Chinese Management Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

Accepted by: Senior Editor Jing Li

References

REFERENCES

Aghion, P., Van Reenen, J., & Zingales, L. 2013. Innovation and institutional ownership. American Economic Review, 103(1): 277–304.10.1257/aer.103.1.277CrossRefGoogle Scholar
Agle, B. R., Mitchell, R. K., & Sonnenfeld, J. A. 1999. Who matters to CEOs? An investigation of stakeholder attributes and salience, corporate performance, and CEO values. Academy of Management Journal, 42(5): 507–525.Google Scholar
Ahuja, G., Lampert, C. M., & Tandon, V. 2008. Moving beyond Schumpeter: Management research on the determinants of technological innovation. Academy of Management Annals, 2(1): 1–98.10.5465/19416520802211446CrossRefGoogle Scholar
Aiken, L. S., & West, S. G. 1994. Multiple regression: Testing and interpreting interactions. Evaluation Practice, 45(1): 119–120.Google Scholar
Allison, S. T., & Messick, D. M. 1990. Social decision heuristics in the use of shared resources. Journal of Behavioral Decision Making, 3(3): 195–204.10.1002/bdm.3960030304CrossRefGoogle Scholar
Ancona, D. G., Okhuysen, G. A., & Perlow, L. A. 2001. Taking time to integrate temporal research. Academy of Management Review, 26(4): 512–529.10.5465/amr.2001.5393887CrossRefGoogle Scholar
Anderson, J. C., & Gerbing, D. W. 1988. Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3): 411–423.10.1037/0033-2909.103.3.411CrossRefGoogle Scholar
Ariño, A., & Ring, P. S. 2010. The role of fairness in alliance formation. Strategic Management Journal, 31(10): 1054–1087.10.1002/smj.846CrossRefGoogle Scholar
Barker, V. L., & Mueller, G. C. 2002. CEO characteristics and firm R&D spending. Management Science, 48(6): 782–801.10.1287/mnsc.48.6.782.187CrossRefGoogle Scholar
Beatty, B., & Zajac, E. 1994. Managerial incentives, monitoring and risk of executive compensation, ownership and board structure in initial public offering. Administrative Science Quarterly, 39(2): 313–335.10.2307/2393238CrossRefGoogle Scholar
Boivie, S., Bednar, M. K., Aguilera, R. V., & Andrus, J. L. 2016. Are boards designed to fail? The implausibility of effective board monitoring. Academy of Management Annals, 10(1): 319–407.10.5465/19416520.2016.1120957CrossRefGoogle Scholar
Boivie, S., Lange, D., Mcdonald, M. L., & Westphal, J. D. 2011. Me or we: The effects of CEO organizational identification on agency costs. Academy of Management Journal, 54(3): 551–576.10.5465/amj.2011.61968081CrossRefGoogle Scholar
Boone, C., Brabander, B., & Witteloostuijn, A. 1996. CEO locus of control and small firm performance: An integrative framework and empirical test. Journal of Management Studies, 33(5): 667–700.10.1111/j.1467-6486.1996.tb00814.xCrossRefGoogle Scholar
Bosse, D. A., & Phillips, R. A. 2016. Agency theory and bounded self-interest. Academy of Management Review, 41(2): 276–297.10.5465/amr.2013.0420CrossRefGoogle Scholar
Bower, J. L. 1986. Managing the resource allocation process: A study of corporate planning and investment. Cambridge, MA: Harvard Business School Press.Google Scholar
Boyd, B. K. 1995. CEO duality and firm performance: A contingency model. Strategic Management Journal, 16(4): 301–312.10.1002/smj.4250160404CrossRefGoogle Scholar
Brown, S. L., & Eisenhardt, K. M. 1997. The art of continuous change: Linking complexity theory and time-paced evolution in relentlessly shifting organizations. Administrative Science Quarterly, 42(1): 1–34.10.2307/2393807CrossRefGoogle Scholar
Castellion, G., & Markham, S. K. 2013. Perspective: New product failure rates: Influence of argumentum ad populum and self-interest. Journal of Product Innovation Management, 30(5): 976–979.10.1111/j.1540-5885.2012.01009.xCrossRefGoogle Scholar
Chang, S. J., Van Witteloostuijn, A., & Eden, L. 2010. Editorial: Common-method variance in international business research. Journal of International Business Studies, 41(2): 178–184.10.1057/jibs.2009.88CrossRefGoogle Scholar
Chin, M. K., Hambrick, D. C., & Treviño, L. K. 2013. Political ideologies of CEOs: The influence of executives’ values on corporate social responsibility. Administrative Science Quarterly, 58(2): 197–232.10.1177/0001839213486984CrossRefGoogle Scholar
Clapham, S. E., & Schwenk, C. R. 1991. Self-serving attributions, managerial cognition, and company performance. Strategic Management Journal, 12(3): 219–229.10.1002/smj.4250120305CrossRefGoogle Scholar
Clarkson, M. B. E. 1988. Corporate social performance in Canada, 1976–86. In Preston, L. E. (Ed.), Research in corporate social performance and policy, (Vol. 10): 241–265. Greenwich, CT: JAI Press.Google Scholar
Cooper, R. G. 2011. Winning at new products: Creating value through innovation. New York: Basic Books.Google Scholar
Crossan, M. M., & Apaydin, M. 2010. A multi-dimensional framework of organizational innovation: A systematic review of the literature. Journal of Management Studies, 47(6): 1154–1191.10.1111/j.1467-6486.2009.00880.xCrossRefGoogle Scholar
D'Aunno, T., & Sutton, R. I. 1992. The responses of drug abuse treatment organizations to financial adversity: A partial test of the threat-rigidity thesis. Journal of Management, 18(1): 117–131.10.1177/014920639201800108CrossRefGoogle Scholar
D'Aveni, R. A., & MacMillan, I. C. 1990. Crisis and the content of managerial communications: A study of the focus of attention of top managers in surviving and failing firms. Administrative Science Quarterly, 35(4): 634–657.10.2307/2393512CrossRefGoogle Scholar
Daily, C. M., & Dalton, D. R. 1997. CEO and board chair roles held jointly or separately: Much ado about nothing?. The Academy of Management Executive, 11(3): 11–20.Google Scholar
Davis, J. H., Schoorman, F. D., & Donaldson, L. 1997. Toward a stewardship theory of management. Academy of Management Review, 22(1): 20–47.10.5465/amr.1997.9707180258CrossRefGoogle Scholar
De Dreu, C. K. 2007. Cooperative outcome interdependence, task reflexivity, and team effectiveness: A motivated information processing perspective. Journal of Applied Psychology, 92(3): 628–638.10.1037/0021-9010.92.3.628CrossRefGoogle ScholarPubMed
Denning, S. 2011. The dumbest idea in the world: Maximizing shareholder value. Nov. 28. Forbes. Available from URL: https://www.forbes.com/sites/stevedenning/2011/11/28/maximizing-shareholder-value-the-dumbest-idea-in-the-world/#1df57b562287Google Scholar
Desarbo, W. S., Benedetto, C. A. D., Song, M., & Sinha, I. 2005. Revisiting the miles and snow strategic framework: Uncovering interrelationships between strategic types, capabilities, environmental uncertainty, and firm performance. Strategic Management Journal, 26(1): 47–74.10.1002/smj.431CrossRefGoogle Scholar
Donaldson, L., & Davis, J. H. 1991. Stewardship theory or agency theory: CEO governance and shareholder returns. Australian Journal of Management, 16(1): 49–64.10.1177/031289629101600103CrossRefGoogle Scholar
Dukerich, J. M., Golden, B. R., & Shortell, S. M. 2002. Beauty is in the eye of the beholder: The impact of organizational identification, identity, and image on the cooperative behaviors of physicians. Administrative Science Quarterly, 47(3): 507–533.10.2307/3094849CrossRefGoogle Scholar
Edwards, J. R., & Lambert, L. S. 2007. Methods for integrating moderation and mediation: A general analytical framework using moderated path analysis. Psychological Methods, 12(1): 1–22.10.1037/1082-989X.12.1.1CrossRefGoogle ScholarPubMed
Eisenhardt, K. M. 1989. Agency theory: An assessment and review. Academy of Management Review, 14(1): 57–74.10.5465/amr.1989.4279003CrossRefGoogle Scholar
Ferrier, W. J. 2001. Navigating the competitive landscape: The drivers and consequences of competitive aggressiveness. Academy of Management Journal, 44(4): 858–877.Google Scholar
Finkelstein, S., & Boyd, B. K. 1998. How much does the CEO matter? The role of managerial discretion in the setting of CEO compensation. Academy of Management Journal, 41(2): 179–199.Google Scholar
Finkelstein, S., & D'Aveni, R. A. 1994. CEO duality as a double-edged sword: How boards of directors balance entrenchment avoidance and unity of command. Academy of Management Journal, 37(5): 1079–1108.Google Scholar
Finkelstein, S., Hambrick, D. C., & Cannella, A. A. 2009. Strategic leadership : Theory and research on executives, top management teams, and boards. New York: Oxford University Press.Google Scholar
Flammer, C., & Bansal, P. 2017. Does a long-term orientation create value? Evidence from a regression discontinuity. Strategic Management Journal, 38(9): 1827–1847.10.1002/smj.2629CrossRefGoogle Scholar
Floyd, S. W., & Wooldridge, B. 2000. Building strategy from the middle. Thousand Oaks, CA: Sage Publications.Google Scholar
Fong, E. A., Misangyi, V. F., & Tosi, H. L. 2010. The effect of CEO pay deviations on CEO withdrawal, firm size, and firm profits. Strategic Management Journal, 31(6): 629–651.Google Scholar
Fu, P. P., Tsui, A. S., Liu, J., & Li, L. 2010. Pursuit of whose happiness? Executive leaders' transformational behaviors and personal values. Administrative Science Quarterly, 55(2): 222–254.CrossRefGoogle Scholar
Galasso, A., & Simcoe, T. S. 2011. CEO overconfidence and innovation. Management Science, 57(8): 1469–1484.10.1287/mnsc.1110.1374CrossRefGoogle Scholar
Gary, S. R., & Cannella, A. A. 1997. The role of risk in executive compensation. Journal of Management, 23(4): 517–540.10.1177/014920639702300402CrossRefGoogle Scholar
Ghoshal, S. 2005. Bad management theories are destroying good management practices. Academy of Management Learning & Education, 4(1): 75–91.10.5465/amle.2005.16132558CrossRefGoogle Scholar
Graham, J. R., Harvey, C. R., & Rajgopal, S. 2005. The economic implications of corporate financial reporting. Journal of Accounting and Economics, 40(1–3): 3–73.CrossRefGoogle Scholar
Griesinger, D. W., & Livingston, J. W. 1973. Toward a model of interpersonal motivation in experimental games. Systems Research and Behavioral Science, 18(3): 173–188.CrossRefGoogle Scholar
Hambrick, D. C. 2007. Upper echelons theory: An update. Academy of Management Review, 32(2): 334–343.10.5465/amr.2007.24345254CrossRefGoogle Scholar
Hambrick, D. C., & Abrahamson, E. 1995. Assessing managerial discretion across industries: A multimethod approach. Academy of Management Journal, 38(5): 1427–1441.Google Scholar
Hambrick, D. C., & Fukutomi, G. D. 1991. The seasons of a CEO's tenure. Academy of Management Review, 16(4): 719–742.CrossRefGoogle ScholarPubMed
Hambrick, D. C., & Mason, P. A. 1984. Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2): 193–206.CrossRefGoogle Scholar
Hambrick, D. C., Finkelstein, S., & Mooney, A. C. 2005. Executive job demands: New insights for explaining strategic decisions and leader behaviors. Academy of Management Review, 30(3): 472–491.10.5465/amr.2005.17293355CrossRefGoogle Scholar
Harrison, D. A., Price, K. H., Gavin, J. H., & Florey, A. T. 2002. Time, teams, and task performance: Changing effects of surface-and deep-level diversity on group functioning. Academy of Management Journal, 45(5): 1029–1045.CrossRefGoogle Scholar
Hayward, M. L., & Hambrick, D. C. 1997. Explaining the premiums paid for large acquisitions: Evidence of CEO hubris. Administrative Science Quarterly, 42(1): 103–127.10.2307/2393810CrossRefGoogle Scholar
Hirshleifer, D., & Thakor, A. V. 1992. Managerial conservatism, project choice, and debt. The Review of Financial Studies, 5(3): 437–470.CrossRefGoogle Scholar
Hofstede, G. 1980. Culture's consequences: International differences in work-related values. Newbury Park, CA: Sage Publications.Google Scholar
Hofstede, G., & Minkov, M. 2010. Long-versus short-term orientation: New perspectives. Asia Pacific Business Review, 16(4): 493–504.10.1080/13602381003637609CrossRefGoogle Scholar
Jensen, M. C. 1988. The takeover controversy: Analysis and evidence. In Coffee, J. C. & Lowenstein, L. (Eds.), Knights, raiders, and targets: 314–354. New York: Oxford University Press.Google Scholar
Jensen, M. C., & Meckling, W. H. 1976. Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4): 305–350.10.1016/0304-405X(76)90026-XCrossRefGoogle Scholar
Kluckhohn, C. 1951. Values and value-orientations in the theory of action: An exploration in definition and classification. In Parsons, T. & Shils, E. (Eds.), Toward a general theory of action: 388–433. Cambridge, MA: Harvard University Press.Google Scholar
Kruglanski, A. W., Orehek, E., Dechesne, M., & Pierro, A. 2010. Lay epistemic theory: The motivational, cognitive, and social aspects of knowledge formation. Social and Personality Psychology Compass, 4(10): 939–950.10.1111/j.1751-9004.2010.00308.xCrossRefGoogle Scholar
Laverty, K. J. 1996. Economic ‘short-termism’: The debate, the unresolved issues, and the implications for management practice and research. Academy of Management Review, 21(3): 825–860.Google Scholar
Li, J., & Tang, Y. 2010. CEO hubris and firm risk taking in China: The moderating role of managerial discretion. Academy of Management Journal, 53(1): 45–68.10.5465/amj.2010.48036912CrossRefGoogle Scholar
Lin, C., Lin, P., Song, F. M., & Li, C. 2011. Managerial incentives, CEO characteristics and corporate innovation in China's private sector. Journal of Comparative Economics, 39(2): 176–190.10.1016/j.jce.2009.12.001CrossRefGoogle Scholar
Ling, Y., Zhao, H., Baron, R. A., Ling, Y., Zhao, H., & Baron, R. A. 2007. Influence of founder-CEOs' personal values on firm performance: Moderating effects of firm age and size. Journal of Management, 33(5): 673–696.CrossRefGoogle Scholar
Lumpkin, G. T., Brigham, K. H., & Moss, T. W. 2010. Long-term orientation: Implications for the entrepreneurial orientation and performance of family businesses. Entrepreneurship & Regional Development, 22(3): 241–264.CrossRefGoogle Scholar
Luo, X., Kanuri, V. K., & Andrews, M. 2014. How does CEO tenure matter? The mediating role of firm-employee and firm-customer relationships. Strategic Management Journal, 35(4): 492–511.10.1002/smj.2112CrossRefGoogle Scholar
MacCrimmon, K. R., & Wehrung, D. A. 1990. Characteristics of risk taking executives. Management Science, 36(4): 422–435.CrossRefGoogle Scholar
MacKinnon, D. P., Lockwood, C. M., & Williams, J. 2004. Confidence limits for the indirect effect: Distribution of the product and resampling methods. Multivariate Behavioral Research, 39(1): 99–128.CrossRefGoogle ScholarPubMed
March, J. G. 1991. Exploration and exploitation in organizational learning. Organization Science, 2(1): 71–87.10.1287/orsc.2.1.71CrossRefGoogle Scholar
Martin, G. P., Wiseman, R. M., & Gomez-Mejia, L. R. 2016. Going short-term or long-term? CEO stock options and temporal orientation in the presence of slack. Strategic Management Journal, 37(12): 2463–2480.CrossRefGoogle Scholar
Meglino, B. M., & Ravlin, E. C. 1998. Individual values in organizations: Concepts, controversies, and research. Journal of Management, 24(3): 351–389.10.1177/014920639802400304CrossRefGoogle Scholar
Miles, R. H. 1987. Managing the corporate social environment. Englewood Cliffs, NJ: Prentice-Hall.Google Scholar
Miller, D., & Breton-Miller, I. L. 2005. Management insights from great and struggling family businesses. Long Range Planning, 38(6): 517–530.CrossRefGoogle Scholar
Milliken, F. J. 1987. Three types of perceived uncertainty about the environment: State, effect and response uncertainty. Academy of Management Review, 12(1): 133–143.CrossRefGoogle Scholar
Mizruchi, M. S. 1983. Who controls whom? An examination of the relation between management and boards of directors in large American corporations. Academy of Management Review, 8(3): 426–435.CrossRefGoogle Scholar
Nadkarni, S., & Chen, J. 2014. Bridging yesterday, today, and tomorrow: CEO temporal focus, environmental dynamism, and rate of new product introduction. Academy of Management Journal, 57(6): 1810–1833.CrossRefGoogle Scholar
Nadkarni, S., & Herrmann, P. O. L. 2010. CEO personality, strategic flexibility, and firm performance: The case of the Indian business process outsourcing industry. Academy of Management Journal, 53(5): 1050–1073.CrossRefGoogle Scholar
Narayanan, M. P. 1985. Managerial incentives for short-term results. The Journal of Finance, 40(5): 1469–1484.CrossRefGoogle Scholar
Nelson, R. R., & Winter, S. G. 1982. An evolutionary theory of economic change. Cambridge, MA: Belknap Press/Harvard University Press.Google Scholar
O'Reilly, C., & Pfeffer, J. 2000. Hidden value: How great companies achieve extraordinary results with ordinary people. Cambridge, MA: Harvard Business School Press.Google Scholar
Ocasio, W. 2011. Attention to attention. Organization Science, 22(5): 1286–1296.10.1287/orsc.1100.0602CrossRefGoogle Scholar
Ou, A. Y., Tsui, A. S., Kinicki, A. J., Waldman, D. A., Xiao, Z., & Song, L. J. 2014. Do humble CEOs matter? An examination of CEO humility and firm outcomes. Journal of Management, 59(1): 34–72.Google Scholar
Ozer, M., & Zhang, W. 2015. The effects of geographic and network ties on exploitative and exploratory product innovation. Strategic Management Journal, 36(7): 1105–1114.10.1002/smj.2263CrossRefGoogle Scholar
Parsons, T., & Shils, E. 1951. Values, motives and systems of action. In Parsons, T. & Shils, E. (Eds.), Toward a general theory of action. Cambridge, MA: Harvard University Press.10.4159/harvard.9780674863507CrossRefGoogle Scholar
Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. 2003. Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5): 879–903.CrossRefGoogle ScholarPubMed
Porter, M. E. 1992. Capital disadvantage: America's failing capital investment system. Harvard Business Review, 70(5): 65–82.Google ScholarPubMed
Reilly, G., Souder, D., & Ranucci, R. 2016. Time horizon of investments in the resource allocation process: Review and framework for next steps. Journal of Management, 42(5), 1169–1194.CrossRefGoogle Scholar
Rokeach, M. 1972. Beliefs, attitudes, and values: A theory of organization and change. San Francisco, CA: Jossey-Bass.Google Scholar
Rokeach, M. 1973. The nature of human values and value systems. New York: Free Press.Google Scholar
Russell, R. D., & Russell, C. J. 1992. An examination of the effects of organizational norms, organizational structure, and environmental uncertainty on entrepreneurial strategy. Journal of Management, 18(4): 639–656.CrossRefGoogle Scholar
Salancik, G. R., & Meindl, J. R. 1984. Corporate attributions as strategic illusions of management control. Administrative Science Quarterly, 29(2): 238–254.CrossRefGoogle Scholar
Simsek, Z. 2007. CEO tenure and organizational performance. Strategic Management Journal, 28(6): 653–662.CrossRefGoogle Scholar
Stein, J. C. 1988. Takeover threats and managerial myopia. Journal of Political Economy, 96(1), 61–80.CrossRefGoogle Scholar
The Economist. 2017. The next wave: Innovation in China. 424(9059): 21.Google Scholar
Tong, T. W., He, W., He, Z. L., & Lu, J. 2014. Patent regime shift and firm innovation: Evidence from the second amendment to China's patent law. Academy of Management Proceedings, 2014(1): 14174–14174.CrossRefGoogle Scholar
Tushman, M. L., & O'Reilly, C. A. III 1996. Ambidextrous organizations: Managing evolutionary and revolutionary change. California Management Review, 38(4): 8–29.10.2307/41165852CrossRefGoogle Scholar
Tversky, A., & Kahneman, D. 1991. Loss aversion in riskless choice: A reference-dependent model. The Quarterly Journal of Economics, 106(4): 1039–1061.CrossRefGoogle Scholar
Venkatraman, N. 1989. Strategic orientation of business enterprises: The construct, dimensionality, and measurement. Management Science, 35(8): 942–962.CrossRefGoogle Scholar
Voss, G. B., & Voss, Z. G. 2000. Strategic orientation and firm performance in an artistic environment. Journal of Marketing, 64(1): 67–83.CrossRefGoogle Scholar
Wang, T., & Bansal, P. 2012. Social responsibility in new ventures: Profiting from a long-term orientation. Strategic Management Journal, 33(10): 1135–1153.CrossRefGoogle Scholar
Wood, D. J. 1991. Corporate social performance revisited. Academy of Management Review, 16(4): 691–718.CrossRefGoogle Scholar
Wu, S., Levitas, E., & Priem, R. L. 2005. CEO tenure and company invention under differing levels of technological dynamism. Academy of Management Journal, 48(5): 859–873.CrossRefGoogle Scholar
Zhou, K. Z., Gao, G. Y., & Zhao, H. 2017. State ownership and firm innovation in China: An integrated view of institutional and efficiency logics. Administrative Science Quarterly, 62(2): 375–404.CrossRefGoogle Scholar