How Information and Communication Technology Shapes the Influence of Culture on Innovation: A Country-level Analysis

Does hierarchical ranking matter to corporate innovation efficiency? An empirical study based on a corporate culture of seniority

“…This study validates that TMT characteristics moderate the effect of seniority on innovation efficiency via mechanisms such as risk-seeking and moral aptitudes, which deepens the understanding of this relationship in different contexts, compared with previous studies on the relationship between culture (e.g. high power distance) and innovation based on information and communication technology (Saldanha et al , 2021).…”

“…In addition, in Table 4, we re-run equation ( 3) using the subsamples (male vs female) [4] and find that the association between the culture of seniority and innovative efficiency is stronger (À0.148 with t = À3.447 if innovative efficiency measured by IE1 t , À0.218 with t = À3.769 if innovative efficiency measured by IE2 t ) in the subsample with more male executives (Columns 2 and 5, Table 4), supporting H2. This study validates that TMT characteristics moderate the effect of seniority on innovation efficiency via mechanisms (Saldanha et al, 2021).…”

“…Subsequently, we re-run equation (3) using the subsamples (knowledge-intensive firms vs labor-intensive firms) [5] and find that the association between the culture of seniority and corporate innovation efficiency is stronger (−0.227 with t = −2.353, −0.289 with t = −3.166) in the subsample with greater reliance on high-skilled labor (Columns 2 and 5, Table 5), suggesting that firms that rely on high-skilled labor have greater incentives to innovate efficiently, as they need more information sharing (Tushman and Nadler, 1978). In contrast to information and communication technology (Saldanha et al , 2021), our study expands the relationship between power distance and innovation efficiency in other contexts.…”

“…In contrast to information and communication technology (Saldanha et al, 2021), our study expands the relationship between power distance and innovation efficiency in other contexts.…”

“…A growing body of literature has investigated the impact of hierarchy on innovation from the theoretical level (Kanter, 1988; Clugston et al , 2000; Yeshua-Katz and Efrat-Treister, 2021). Existing literature has documented that power distance hinders innovation through various channels, including affecting individuals’ thinking mode and behavior and obstructing resource flow (Boone et al , 2019; Saldanha et al , 2021).…”