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

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9. Industry, innovation and infrastructure
Management
Opinion Article
SDG
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Sustainability: political inefficiency or business mainstream?

These last years have been paradoxical in every way.

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Management
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SDG
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Conveyed Leader PsyCap Predicting Leader Effectiveness Through Positive Energizing

Whereas past research on psychological capital (PsyCap) has tended to focus on how one’s self-attributed PsyCap affects one’s work behaviors, we extend this literature by examining the concept of conveyed PsyCap and its downstream consequences, above and beyond the influence of self-attributed PsyCap.

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Management
Research insight
SDG
16

Changing corporate governance in response to negative media reports

We study how organizations change their corporate governance in response to negative publicity in the media.

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