Research On The Impact Of Task-related TMT Faultline On Firm Innovation Performance

Innovation is an important driving force to guide the economic and social development of a country.The report of the 20 th Congress of the Communist Party of China states that we should accelerate the implementation of innovation-driven development strategy and achieve a high level of scientific and technological self-sufficiency and self-improvement.Enterprises are important subjects to achieve innovation development,and are closely related to the output,development and application of high technology.According to the statistics of China’s Ministry of Science and Technology,the proportion of enterprise R&D investment in the total R&D investment of the whole society in 2022 is more than threequarters,and the proportion of national key R&D programs in which enterprises participate or lead is close to 80%,so Chinese enterprises should be brave enough to take the responsibility and make innovation-driven as their own long-term development direction.The top management team is the core of the enterprise’s decision making,and plays a decisive role in the formulation and implementation of the enterprise’s development strategy.Therefore,in the context of the new era of mass entrepreneurship and innovation in China,it is necessary to pay attention to the influence of the top management team on corporate innovation.Although scholars have studied the relationship between the diversity of executive team members’ characteristics and corporate innovation from the perspective of team heterogeneity,the differences in members’ characteristics can also cause divisions within the team,and the discussions and explorations around the extent to which TMT faultline can affect corporate innovation are still insufficient.Based on upper echelons theory,group decision theory and principal-agent theory,this paper investigates the impact of task-related TMT faultline on the innovation performance of listed companies in Shanghai and Shenzhen A-share companies from 2010 to 2020 using empirical research methods in two dimensions:patent quantity and patent quality.On this basis,the degree of industry competition and CEO power intensity were selected as moderating variables to analyze the effects of external industry factors and internal core members’ characteristics on the relationship between taskrelated TMT faultline and corporate innovation performance of listed companies.In addition,to ensure the accuracy of the research results,two algorithms,FAU and FLS,were adopted in this paper to measure the strength of TMT faultline.The research results show that:(1)the task-related TMT faultline has a significant negative impact on the number of patents;(2)the task-related TMT faultline has a significant positive impact on the quality of patents;(3)the intensity of CEO power enhances the negative impact of the task-TMT faultline on the number of patents;(4)the intensity of CEO power weakens the positive impact of the task-relate TMT faultline on the quality of patents;(5)the degree of industry competition weakens the negative effect of task-related TMT faultline on patent quantity;(6)the degree of industry competition enhances the positive effect of task-related TMT faultline on patent quality.China is in the steady transition stage of high-quality development of market economy,and the relevant conclusions have certain guiding significance for establishing a good order of market competition,optimizing the construction of executive team,stimulating the innovative vitality of enterprises,and promoting the sustainable development of enterprise innovation.