 Innovative routes: The impact of strategic deviance on corporate successChien-Chiang Lee (), Chih-Wei Wang and Hsuan Hsu International Review of Financial Analysis, 2024, vol. 96, issue PA Abstract: In this study, we examine the influence of strategic deviance (STD) on U.S. firms' innovation from 2011 to 2019. Our primary findings indicate that STD has a positive effect on a firm's innovation. Furthermore, chain mediation analysis reveals that managerial ability, industry competition, and cash holding partially mediate the impact of STD on U.S. firms' innovation. The robustness of our results is confirmed through the application of two-stage least squares (2SLS) and propensity score matching with difference-in-differences (PSM-DID) to address endogeneity concerns, along with the use of alternative measures of STD. We also find that the impact of STD on innovation is more pronounced in the eastern U.S. and varies across different industries. Our study suggests a positive correlation between STD and corporate innovation, indicating that firms should consider adopting deviant strategies to enhance innovation, thereby benefiting both themselves and the entire industry. Keywords: Strategic deviance; Innovation; Managerial ability; Industry competition; Cash holding (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:96:y:2024:i:pa:s1057521924005921 DOI: 10.1016/j.irfa.2024.103660 Access Statistics for this article International Review of Financial Analysis is currently edited by B.M. Lucey More articles in International Review of Financial Analysis from Elsevier |
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