| Because of high adjustment costs,sudden interruption of innovation activities will cause huge loss to the enterprise.Therefore,how to maintain the sustainability of innovation activities is of great practical significance for Chinese enterprises in the process of changing from "extensive quantity" growth mode to "quality and benefit" growth mode.In the Chinese enterprises with separation of chairman and CEO,chairman and CEO form the basic leadership dyadic unit,which is the core structure of the top management team.The chairman and CEO represent different roles of stakeholders and perform different functions.As the strategic decision-maker and the chief executive,they play an important role in affecting the enterprise strategy and organizational performance.The CEO is the chief executive of the company's strategy,who is responsible for the achievement of the company's business objectives.The influence of the CEO in the enterprise depends on the control power of the CEO.Through his controlling power,the CEO can turn his subjective will and preference into legitimate organizational behavior.Under the framework of the dyadic body of power,CEO has certain decision-making power,chairman grasps the strategic direction and controls the strategic operation,and has a restraining effect on the behavior of the CEO.In addition,TMT heterogeneity seems to be a double-edged sword.On the one hand,TMT heterogeneity can contribute to a more comprehensive understanding of the business environment and internal resource heterogeneity,so as to improve the quality and speed of strategic decision;but on the other hand,heterogeneity hinders the communication between senior members,led to the contradiction and conflict of top management team,have a negative impact on the organization.Therefore,it will negatively affect the relationship between the executive power and the implementation of innovative activities.The paper investigates top executives' effect on the sustainability of enterprise innovation,and argues its salient influence depends on CEO's power and Chairman/CEO heterogeneity.Using the micro data of A-Share manufacturing listed companies from 2003 to 2014,empirical results indicate that powerful CEO's power promotes innovation sustainability and dyad characteristics of Chairman/CEO negatively moderates the relationship between CEO's power and innovation sustainability.The paper focuses on the basic power center of listed companies in China-chairman and CEO dyad,in response to the current research trend on the microstructure top executive team due to the unequal decision-making influence of executive team members.Second,whether innovation activities to be continued depend on both decision-making and implementation.Under the framework of the dual power dyad body,CEO has certain decision-making power,but chairman grasps strategic direction,controls strategy operation.The relationship between the Chairman and CEO has significant impact of innovation continuity.The results find that the positive effects of CEO power and the interfering effect of vertical difference between chairman and CEO,which provide evidence for comprehensive and accurate understanding of the role of the top executives in the high-risk innovation activities.Thirdly,heterogeneity of top executive team may have positive or negative effect,and the actual effect partially depends on cultural background,team type,task complexity,work dependency.This paper examines both the overall effects of heterogeneity and reveals the different effects of the differences in the characteristics.The paper not only reveals the mechanism and true effect of power and interplay characteristics of top management teams influencing the sustainability of innovation,but provides managerial suggestions to facilitate innovation continuity and improve allocation of core top executives for Chinese enterprises.As innovation is an activity with high complexity and high risk,the paper suggest that enterprises should make rational allocation of the power of the CEOs under conditions of fully considering the environment dynamics and the characteristics of the task.In addition,Chinese enterprises should explore and improve clearly defined and matching rights and responsibilities of chairman and CEO,and establish a good interaction mechanism between chairman and CEO under the dyad leadership configuration. |
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