An examination of how and when the top management team matters for firm innovativeness: The effects of TMT functional backgrounds

This research draws on upper echelon theory to suggest that a top management team's R&D experience, marketing experience, and background diversity affect firm innovativeness and considers the potential moderating effect of industry contextual factors and the firm's strategic context. Data from different archival sources pertaining to 108 firms suggest that these TMT characteristics influences firm innovativeness both directly and through the firm's R&D investment intensity. Additionally, industry growth and advertising intensity, as well as a firm's related diversification strategy, significantly enhance the above effects of TMT characteristics on R&D investment intensity and firm innovativeness. Thus, we identify specific types of TMT experience that affect firm innovativeness and outline a process through which this occurs. The implication was presented especially regarding the synergic effect of marketing and R&D experience to enhance firm innovativeness, along with limitations and some future research direction.