The relationship between management characteristics and firm innovation

Abstract

Purpose The purpose of this paper is to assess the relationship between some management features (management capability, management entrenchment, agency costs and overconfidence) and the innovation of companies listed on the Tehran Stock Exchange. Design/methodology/approach The study carried out during 2009–2015. A total of 125 companies were selected from eight industries as the sample of study using the method of systematic elimination. A descriptive-correlational design was used in this study and panel data regression models were employed for developing the relationship between research variables. Findings The obtained results indicated that managerial ability could foster innovation, while managerial entrenchment could stifle innovation and agency costs and overconfidence have no effect on innovation. Originality/value The current study is almost the first project which focuses on the management characteristics and firm innovation in developing countries.

The role of information technology management in supporting managerial innovation

“…The culture of the organization or institution is no less important than the availability of financial resources and technological capabilities of the institution. The movement of the organization is an innovative management that accommodates the variables of the times and is familiar with the modern methods of innovative management, which need to be applied in organizations' basic requirements, to contribute to improve the quality of administrative and internal processes work (Muzamil Naqshbandi and Kaur, 2014).There are a number of administrative requirements that must be met in the regulatory environment of innovative management, summarized in the following as according to (Salehi et al, 2018):…”

The relationship between management characteristics and firm performance

“…Furthermore, their findings show that there is a positive and significant relationship between managerial entrenchment and firm innovation. In another investigation, Salehi et al (2018b) investigate the relationship between some management features (management capability, management entrenchment, agency costs and overconfidence) and the innovation of companies listed on the TSE market. The findings of their study explore several views in this line of literature.…”

Top Management Capabilities and Firm Efficiency: Relationship via Resources Acquisition

“…In line with Bathula and Singh (2015) who concluded that top management involvement is vital for enhancing high efficiency and success. Similarly, Salehi et al, (2018) also argued that TMC are not only prominent for high profitability but also very crucial for boosting operational activities. Additionally, Zhao, Zha, Hou and Liang (2019) claimed that in emerging economies such as China, the top management team significantly influences operational activities and plays a crucial role in the improvement of firm efficiency.…”

“…TMC are the firm-level indicators that affect a firm's performance (Bathula & Singh, 2015). TMC are not only important for the high performance of a firm but also influence innovative and operational activities (Salehi, DashtBayaz, & Moghadam, 2018). Upper Echelon theory suggests that a firm's success and performance are influenced by the top management team rather than bottom or middle-level managers (Hambrick & Mason, 1984;Tseng & Lee, 2014).…”