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Many organizational and environmental factors influence a firm’s commitment to innovation. Among the organizational factors, the perceptual lens of the top management team and the team’s dynamics are posited to have a significant direct impact on the firm’s commitment to innovation. This study revisits the classic arguments of Hayes and Abernathy and empirically examines several of their propositions. The results clearly indicate a positive relationship between the technical orientation of the TMT/CEO and above‐average R&D intensity. This effect remains even after controlling for the impact of performance in prior periods and firm diversification. Overall, these results suggest that establishing a high level of commitment to innovation will be promoted or impeded in many organizations because of the predispositions of the CEO and top management team.
Daellenbach et al. (Thu,) studied this question.