Impact of Subsidiary TMT Network Attention on Innovation: The Moderating Role of Subsidiary Autonomy

Abstract

ABSTRACTThis article takes group subsidiaries that were listed in the A-share market of Shanghai and Shenzhen Stock Exchanges in China from 2012 to 2017 as the research subject and innovatively explores the impact of subsidiary TMT (top management team) attention at different networks on subsidiary innovation, considering dual network embedding characteristics and autonomy of subsidiaries. Results show that subsidiary TMT group network attention will inhibit subsidiary innovation, while their external network attention will promote subsidiary innovation, after the inclusion of industry category factors, the effect has changed accordingly, but the moderating effect of subsidiary autonomy on the relationship between subsidiary TMT attention on different networks and subsidiary innovation is always significant. The identification of subsidiary TMT attention not only supplements to current literature's narrow focus on impact of the group parent company attention on subsidiary behaviors, but also broadens theoretical understanding of the driving factors of innovation behavior of subsidiaries. Through expounding on the moderating role of subsidiary autonomy, this article clarifies boundary conditions of subsidiary TMT attention's impact on subsidiary innovation and provides operable guidance for subsidiary TMT to allocate and utilize their attention to promote the development of subsidiary innovation behaviors.