Shareholder heterogeneity, board dicisionmaking process and ambidextrous corporate innovation: evidence from China

Lidong Wu, Qingyun Wang and Kunkun Xue

Nankai Business Review International, 2022, vol. 13, issue 4, 648-665

Abstract: Purpose - Shareholder heterogeneity reflects the interactive relationship between shareholder groups of different industries and ownership types. This paper aims to discuss the impact of shareholder heterogeneity on ambidextrous corporate innovation. Design/methodology/approach - Combining questionnaire and database data, this study empirically analyzes the internal mechanisms of the impact of shareholder heterogeneity on ambidextrous corporate innovation. Findings - The authors find that shareholder heterogeneity can promote ambidextrous corporate innovation and that board’s decision-making processes play an intermediary role. Specifically, shareholder industry-type heterogeneity promotes ambidextrous corporate innovation by improving procedural rationality in board’s decision-making process, and shareholder ownership-type heterogeneity promotes ambidextrous corporate innovation by improving political behavior in board’s decision-making process. The analysis of the impact degree shows that shareholder industry-type heterogeneity has a greater impact on exploitation innovation, while shareholder ownership-type heterogeneity has a greater impact on exploratory innovation. In addition, the research also shows that shareholder groups dominated by industry-type heterogeneity have an impact on corporate innovation by shaping an engaged board with higher procedural rationality and lower political behavior. Shareholder groups dominated by ownership-type heterogeneity have an impact on corporate innovation by shaping a contested board with higher political behavior and lower procedural rationality. Originality/value - This study not only enriches the research on shareholder heterogeneity and corporate innovation in the context of transformation but also provides an analytical framework for research on board’s decision-making process.

Keywords: Ambidextrous innovation; Political behavior; Industry-type heterogeneity; Ownership-type heterogeneity; Procedural rationality (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:nbripp:nbri-05-2022-0048

DOI: 10.1108/NBRI-05-2022-0048

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