%0 Journal Article
%J Research Policy
%D 2017
%T Horizon Problem and Firm Innovation: The Influence of CEO Career Horizon, Exploitation and Exploration on Breakthrough Innovations
%A Cho,Sam Yul
%A Kim,Sang Kyun
%K Strategy & Entrepreneurship
%X Building on labor market evaluations and legacy conservation motivation perspectives, we propose a mechanism to explain the relationship between CEO career horizons and breakthrough innovations. Using 10-year panel data from 681 U.S. firms, we find that firms that have a CEO with a short career horizon (measured by CEO age) tend to produce fewer breakthrough innovations. We also find that the relationship between CEO career horizon and breakthrough innovation is partially mediated by R&D spending, and also moderated by organizational learning behavior (exploration vs. exploitation). This study highlights how a CEO’s motivation to protect success in the short term affects the firm’s innovativeness.
%B Research Policy
%V 46
%P 1801-1809
%8 2017
%G eng
%2 a
%4 126872340480
%$ 126872340480