 Executive team faultlines, business diversification, and corporate substantive innovationQiang Zhang and Mingyu Lou International Review of Economics & Finance, 2025, vol. 103, issue C Abstract: This study examines the impact of executive team faultlines on substantive innovation and the moderating roles of business diversification and environmental uncertainty using 2010–2022 data from China's A-share listed companies. Key findings reveal that: Surface-level faultlines inhibit innovation while deep-level faultlines promote it; Business diversification amplifies the negative effect of surface-level faultlines but enhances the positive effect of deep-level faultlines; Environmental uncertainty strengthens the inhibitory effect of surface-level faultlines while weakening the promotive effect of deep-level faultlines; and these effects are more pronounced in non-regulated industries and high social-trust firms. The study provides new theoretical insights into how executive team structures influence innovation quality and offers practical implications for team optimization. Keywords: Executive team faultlines; Substantive corporate innovation; Business diversification; Environmental uncertainty (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:reveco:v:103:y:2025:i:c:s1059056025006987 DOI: 10.1016/j.iref.2025.104535 Access Statistics for this article International Review of Economics & Finance is currently edited by H. Beladi and C. Chen More articles in International Review of Economics & Finance from Elsevier |
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