The impacts of CEO’s knowledge structure on corporate innovation strategy

Abstract

Purpose This study aims to explore the impacts of the knowledge structure of CEO on corporate innovation strategy in the background of China’s national policy of innovation-driven development. Design/methodology/approach Regression analysis is used to test the direct effects and the moderating roles of financial and power incentives. It screens 685 listed companies from Chinese stock market, with the time window from 2016 to 2018. Findings CEO’s knowledge breadth has a significant impact on innovation strategy, but the moderating effects of power and financial incentives are not significant. CEO’s knowledge depth is negatively correlated to corporate innovation strategy; moreover, power incentive significantly strengthens the relationship, whereas financial incentive significantly weakens it. Research limitations/implications Firms are suggested to optimize CEO knowledge structure and organizational incentive system for better implementing innovation-driven development strategy. Originality/value It is beneficial to the exploration of the micro-mechanism that enables corporate innovation strategy. Scholars may gain additional insights into the strategic management of corporate innovation from the perspective of CEO’s knowledge structure.