Can Executive Academic Experience Help Companies Improve Their Innovation? Empirical Study of Chinese Listed It Companies

Hongjun Zeng

doi:10.46281/ijbmf.v4i1.435

Abstract

In recent years, as the largest emerging market, China's economic development has gradually shifted from the high growth stage to the high-quality development stage. Company is an essential micro-subject of macroeconomic activities, and an entrepreneur's academic background is a critical factor in achieving high-quality corporate development. This study takes the data of IT listed companies in China from 2012 to 2017 as the sample, Screening research samples based on academic experience requirements based on requirements for current or former teaching and research positions in universities, then makes an empirical analysis on the connection between academic executives and companies innovation ability. The results indicate that there is a significant positive correlation between executive academic experience and company’s innovation ability, i.e., academics-type. There is also a significant positive correlation between the average tenure of executives and innovation ability, which still holds after robustness test. Researching the relationship between the academic experience of the executives of listed companies and their innovation ability can not only enrich the research on the characteristics of senior management team, but also provide theoretical guidance for the construction of senior management team, and provide a few suggestions for the improvement of innovation ability and the formulation of government-related policies.

Highlights

1.1 Research Background At present, the trans-nationalization of business activities accelerates the development of companies, companies face complex and ever-changing environment, and the importance of the distinctive and scarce human capital with the high added value of knowledge and skills of senior managers is increasingly highlighted (Buckley et al, 2010)
1.2 Contents and Methods of Research This study focuses on the impact of senior executives' academic experience on the innovation ability of listed IT companies in China
Through the quantification and test established by the econometric model, the obtained results have outstanding reference value for the companies to hire an executive team, improve the enterprise innovation ability and profitability

Summary

Introduction

1.1 Research Background At present, the trans-nationalization of business activities accelerates the development of companies, companies face complex and ever-changing environment, and the importance of the distinctive and scarce human capital with the high added value of knowledge and skills of senior managers is increasingly highlighted (Buckley et al, 2010). The excellent senior management team has become an essential part of the core competitiveness of companies, which can help companies improve their internal management and further improve their business performance (Kaplan et al, 1991). It is a key factor for some companies to continuously promote innovation. Executives play an essential role in internal decision-making and corporate governance. As the formulation and executor of corporate strategic decision-making, it plays an irreplaceable role in the development of corporate innovation ability (Tan, 2001)

Methods

Results

Conclusion