Innovation Governance: An attention-based view from Chinese MNCs

Innovation has become crucial for Multinational Corporations (MNCs) to survive and thrive in today's digital era of disruptive technologies. According to the attention-based view, top management team (TMT) attention reflects organizational cognition and strategic preferences. This study investigates how TMT attention to innovation influences Chinese MNCs' innovation investment and examines the moderating role of managerial discretion. Using panel data from 9,929 observations of Chinese A-share listed manufacturing MNCs from 2006-2022, we find that greater TMT attention to innovation-related issues leads to increased innovation investment. Furthermore, CEO duality strengthens this relationship, while firm age shows no significant moderating effect. Our findings provide valuable insights for policymakers and stakeholders seeking to promote organizational innovation in a rapidly evolving business environment.