Strategic decision making for boosting innovation and TMT compensation in high-tech industry: evidence from China Online publication date: Fri, 27-Jul-2018
by Muhammad Usman; Shufang Xiao; Dan Luo; Ningyue Liu
International Journal of Technology, Policy and Management (IJTPM), Vol. 18, No. 3, 2018
Abstract: This study investigates whether total, accounting-based and stock-based compensation packages for top management teams (TMTs) impact firms' total, internal R&D and external buying behaviour of getting new technology. Total innovation behaviour, internal R&D behaviour and external buying behaviour are examined across a sample of 86 A-share listed companies from the Chinese high-tech sector from the period 2009 to 2015. After controlling endogeneity issues, firm size, cash flow and various other firm characteristics, the results of three stage-least-square regressions (3SLS) analysis show that TMT total compensation is positively related to total innovation policy. Furthermore, the results of accounting based and stock based compensations suggest that when TMT compensation is heavily based on accounting performance, companies prefer to buy new technology through external sources and avoid internal R&D, whilst TMT compensation skewed more towards risk-based stock compensation encourages internal R&D and discourages external new technology acquisition.
Online publication date: Fri, 27-Jul-2018
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Technology, Policy and Management (IJTPM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com