BOARD OF DIRECTORS AS A FACTOR OF FIRM PERFORMANCE IN INNOVATIVE COMPANIES

Irina Berezinets, Kirill Berezkin, Yulia Ilina and Irina Naoumova
Additional contact information
Kirill Berezkin: Graduate School of Management, St. Petersburg University, Russia
Irina Naoumova: Barney School of Business, University of Hartford, USA

International Journal of Innovation Management (ijim), 2019, vol. 23, issue 06, 1-26

Abstract: The emerging markets undergo constant transformations and changes, and thus, a change of strategy can be critical for companies. However, the impact of R&D investment on firm performance and the role of the board of directors that makes decisions about a company’s innovative activities remain inconclusive. This paper investigates the relationship between a board of directors’ composition and structure in innovative companies and firm performance. Using the panel data of innovative Russian public companies that made R&D investments in 2011–2013, we found a positive relationship between the boards’ independence and ROA as an indicator of firm performance. Moreover, it was shown that innovative companies that establish a strategy committee will on average have a higher ROA ratio than innovative companies without such a committee. Innovative firms in emerging markets might consider creating strategic committees and increasing board independence to enhance their performance and increase the number of successful R&D investments.

Keywords: R&D investments; board composition; board structure; innovative companies; firm performance (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S1363919619500609
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijimxx:v:23:y:2019:i:06:n:s1363919619500609

Ordering information: This journal article can be ordered from

DOI: 10.1142/S1363919619500609

Access Statistics for this article

International Journal of Innovation Management (ijim) is currently edited by Joe Tidd

More articles in International Journal of Innovation Management (ijim) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().