CEO Research Orientation, Corporate Context and Firm Innovation in the Biopharmaceutical Industry

Abstract

This study develops and tests a comprehensive framework that explains what, when, and how CEO characteristics influence firms' innovation outcomes in R&D-intensive industries. Empirical evidence from 109 CEOs from 87 U.S.-based pharmaceutical firms over the period 2001-2013 reveals that research-oriented CEOs -those with ability and motivation for science and technology -increase their firms' innovation outcomes. The results indicate that the CEO-innovation relationship strongly depends on the extent of CEOs' managerial discretion, which is shaped by the organizational context. We contribute to a more comprehensive understanding of the role of CEOs in firms´ innovation performance differentials.