The Effect Of CEOs From High-Tech Firms Taking Positions In Both Institutions On Firm’s Explorative Innovation

With the trend of economic globalization is continuously enhanced, Chinese enterprises face the increasingly fierce competition in the market. The enterprise wants to obtain long-term survival and development, which must constantly introduce new products and services to meet the changing market demand. In this context, explorative innovation has attracted more and more attention of enterprises, which has become an important means to improve the core competitiveness of enterprises. In order to explore the way of explorative innovation of enterprises, this paper presents a theory and empirical framework about the relationship between the CEOs From High-Tech Firms Taking Positions In Both Institutions and explorative innovation of enterprise.so that we have a analysis of the effect of CEOs from high-tech firms taking positions in both institutions on firm’s explorative innovation, at the same time, we also explore the moderating effect from CEO’s position in the other institution and the background of the CEO currently serving enterprise.Chinese enterprises operate in SOE vs. Non-SOE two distinct institutions simultaneously due to the gradual market reform, Which make the realistic condition for CEOs Taking Positions In Both Institutions. CEOs of high-tech firms taking positions in both institutions can bridge two fields, and find opportunities between two institutions. This study empirically examines the effect of CEO’s cross-institutional tenure on firm’s explorative innovation. The findings suggest that(1) CEO’s cross-institutional tenure has a positive effect on explorative innovation;(2) the tenure position in the other institution will negatively moderate the relationship between CEO cross-institutional tenure on explorative innovation;(3) firms with CEO from SOE when taking position in non-SOE institution will have stronger relationship between the cross-institutional tenure and explorative innovation. Our study contributes to both social capital theory and explorative innovation literature.