Abstract
Adopting a regional identity perspective, this study examined the influences of regional identity and CEO leadership behaviors on Top Management Team (TMT) dynamics and Firm Innovation Capability in regionally diverse organizational environment. With a large sample of responses of 111 Indian firms, our results were found to have largely conformed to our proposed hypotheses. Specifically, CEO authentic leadership exerts a positive effect on TMT behavioral integration which in turn positively influences TMT resilience capability, and finally advance firm innovation capability. More importantly, TMTs that were diverse in terms of region negatively moderates the relationship between CEO authentic leadership and TMT behavioral integration. Also, the path between CEO Authentic leadership and Firm Innovation Capability is also supported. Similarly, TMT environmental scanning behavior mediates the relationship between CEO authentic leadership and Firm innovation capability. Our study reveals the significance of the CEO-TMT interface that is required for enhancing firm innovation capability under regionally diverse environment.
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