Management
Research insight
December 13, 2020

Do general managerial skills spur innovation?

We show that firms with chief executive officers (CEOs) who gain general managerial skills over their lifetime of work experience produce more patents. We address the potential endogenous CEO-firm matching bias using firm-CEO fixed effects and variation in the enforceability of noncompete agreements across states and over time during the CEO's career. Our findings suggest that generalist CEOs spur innovation because they acquire knowledge beyond the firm's current technological domain, and they have skills that can be applied elsewhere should innovation projects fail. We conclude that an efficient labor market for executives can promote innovation by providing a mechanism of tolerance for failure.

Published in Management Science.

This content was originally published in Novafrica org.

Cláudia Custódio & Miguel A. Ferreira Nova School of Business and Economics, and Pedro Matos, University of Virginia

Cláudia Custódio & Miguel A. Ferreira Nova School of Business and Economics, and Pedro Matos, University of Virginia

Website
9. Industry, innovation and infrastructure
Management
Research insight
SDG
16

Legacy of the state: prior shared experience and survival of spin-offs from restructured state enterprises

Many organizations, especially in emerging economies, trace their origins to restructured state enterprises, and this study explores the implications of such origins for organizational adaptation to changing environmental conditions.

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Management
Project
SDG
17
4

Nova Social Consulting - Student Club

Nova Social Consulting has been providing pro-bono consulting services for actors of the Portuguese social & environmental sector for over a decade, powered by a dedicated community of high-profile students from Nova SBE.

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Management
Webinar
SDG
3
8

Why Organizational Safety Matters in Times of Crisis

High performing teams in healthcare services were admitting and discussing their errors and failures. Those teams felt safe in their organization to talk about them because they could learn and improve processes management and organizational performance. Managers don't have to expect results to be stable or always grow in a positive direction. Ups and downs can be a course correction or a change in path. Observing and measuring a team's behavior is essential. Healthcare professionals will focus on building the right processes, sharing problems with an open dialogue without fear, not just monitoring indexes.

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