ABSTRACT Despite females’ growing influence in strategic decision-making, research on how female leaders affect innovation decisions (captured by R&D investment) remains inconclusive. This study argues that focusing solely on CEOs, TMTs, or boards does not fully explain how innovation decisions are made, but rather that interactions between these decision-making groups may profoundly affect corporate innovation. Based on social identity theory, this study suggests that female board/TMT representation may create a psychologically safe atmosphere that promotes effective discussion and information exchange, motivating a lone female CEO to innovate. By employing panel regressions to analyse 2,925 observations from Taiwanese electronics firms, this study finds that although the lone female CEO tends to invest less in innovation, her interactions with female directors and female top managers may make her feel more comfortable, enabling her to obtain board advice and TMT assistance more effectively, ultimately increasing her willingness to innovate.
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