THE RELATIONSHIP BETWEEN TOP MANAGEMENT TEAM INNOVATION ORIENTATION AND FIRM GROWTH: THE MEDIATING ROLE OF FIRM INNOVATIVENESS

Author:

KRAICZY NILS D.1,HACK ANDREAS1,KELLERMANNS FRANZ W.23

Affiliation:

1. Institute of Organization and Human Resource Management, University of Bern, Engehaldenstrasse 4, 3012 Bern, Switzerland

2. Department of Management, University of North Carolina - Charlotte, Charlotte, NC 28223-0001, USA

3. Institute of Family Businesses, WHU - Otto Beisheim School of Management, Burgplatz 2, 51679 Vallendar, Germany

Abstract

Upper echelon theory and research on innovation have considered top management teams and their behaviour and characteristics as important factors that positively influence innovativeness and organizational outcomes. Yet, innovation research has mostly focused on individual new product projects, and their performance and impact on firm performance. Recent research has started to apply a more holistic view in terms of innovation, by considering firm-wide innovation instead of single new products. Upper echelon research has concentrated on direct relationships between top management team characteristics and organizational outcomes. But recent research calls for mediating effects of the relationship between top management team characteristics and organizational outcomes. Hence, this study introduces firm innovativeness as a mediator between top management team innovation orientation and firm growth. Focusing on small and medium-sized firms, which often represent highly innovative firms, results show that firm innovativeness fully mediates the relationship between top management team innovation orientation and firm growth. Implications and future research are discussed.

Publisher

World Scientific Pub Co Pte Lt

Subject

Management of Technology and Innovation,Strategy and Management,Business and International Management

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