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The Influencing Mechanism of Top Management Team’s Temporal Focus on Firm Innovation

Author: DingAnNa
Tutor: LiuJingJiang
School: Zhejiang University
Course: Entrepreneurial Management
Keywords: temporal focus exploration innovation exploitation innovation slackresource CEO power
CLC: F273.1
Type: Master's thesis
Year: 2013
Downloads: 118
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There are few studies about the relationship between top management team (TMT), exploration and exploitation from the temporal focus perspective, and also lack of bringing in moderators to make further researches. Based on the attention theory, we using the context analysis and empirical research method to examine the differential effects of TMT’s past-, present-, and future focus on exploration and exploitation, and also examine the moderating effect of the absorbed slack, unabsorbed slack, and CEO power.Though making the content analysis of120corporations’annual reports and then the linear regression analysis of the data obtained, the results suggest that:(1) TMT’s past focus is negatively related to exploration, and positively related to exploitation;(2) TMT’s present focus is positively related to both exploration and exploitation;(3) TMT’s future focus is positively related to exploration, and negatively related to exploitation;(4) absorbed slack has a positively moderating effect on the relationship between:past focus and exploitation, past focus and exploration, present focus and exploration;(5) unabsorbed slack has a positively moderating effect on the relationship between:past focus and exploitation, future focus and exploration, and has a negatively moderating effect on the relationship between present focus and exploration;(6) CEO power has a negatively moderating effect on the relationship between:past focus and exploitation, present focus and exploration.The results show that the appropriate distribution of top management team temporal focus will be benefit for corporations to take activities about exploration innovation and exploitation innovation. In addition, keeping reasonable level of firm slack and giving the CEO appropriate power will make top managers easier to promote exploration and exploitation through temporal focus distribution.

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CLC: > Economic > Economic planning and management > Enterprise economy > Production management > Enterprise Technology Management
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