Abstract
Contemplating the actual leaders of entrepreneurial firms and socio demographic dissimilarity between leaders and their teams, this study adopts panel data on the entrepreneurial firms of the China’s Growth Enterprise Market and empirically examines the influence of chair power on research and development (R&D) intensity of entrepreneurial firms from the perspective of social identity. The results indicate that chair power positively affects entrepreneurial firms’ R&D intensity. The chair–team sociodemographic dissimilarity moderates the relationship in such a way that chair power is negatively related to entrepreneurial firms’ R&D intensity only when chair–team sociodemographic dissimilarity is high. The execution of robustness checks authenticates the veracity of the empirical results.
Highlights
Leaders, as key decision-makers of enterprises, influence enterprise innovation, such as research and development (R&D) intensity, through using their power (Garms and Engelen, 2019; Ke and Li, 2020)
By adopting panel data on the entrepreneurial firms of China’s Growth Enterprise Market, the results reveal a significant positive relationship between chair power and entrepreneurial firms’ R&D intensity
Chair–team sociodemographic dissimilarity attenuates the positive effect of chair power on R&D intensity of entrepreneurial firms
Summary
As key decision-makers of enterprises, influence enterprise innovation, such as research and development (R&D) intensity, through using their power (Garms and Engelen, 2019; Ke and Li, 2020). How does the leader’s power directly affect firm innovation (e.g., Sariol and Abebe, 2017; Sheikh, 2018; Garms and Engelen, 2019; Ke and Li, 2020). This view points out that powerful leaders will influence strategic decision-making because of their preferences and
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