Differences in CEO Communication Strategies between High- and Low-Performing Firms in the Global Auto Parts Industry

Abstract

This study focuses on how global automotive suppliers manage innovation by analyzing keywords in CEO messages. Given that CEOs significantly shape innovation strategy, the intricate dynamics of open innovation and the role of CEO characteristics in its adoption warrant further investigation. Accordingly, the research unfolds in three stages: (1) extracting keywords related to innovation highlighted in CEO communications, (2) contrasting the deployment of these keywords between high-performing and low-performing companies, and (3) deciphering the nuances of innovation management by interpreting the underlying meaning and structure of these keywords. This comparative analysis between top and bottom performers underscores stark contrasts in keyword emphasis. Through eigenvector centrality, mapping open innovation’s success factors pinpointed provision of resources and governance as pivotal in top-performing firms. Notably, the preferred keywords among leading firms reflect their current challenges and innovative management direction. Thus, to embody agile and visionary leadership in open innovation, CEOs should strategically incorporate and highlight keywords aligned with critical factors of open innovation in their communications. These insights offer valuable benchmarks for less successful firms aiming to refine their approaches to innovation management, vision, and strategy.

Key Traits of Leading Sustainable Firms in the Semiconductor Industry

“…Unlike traditional text analysis methods that analyze specific concepts or words [54] in a text statistically, language network analysis enables the understanding of relationships between specific concepts in the text [59]. Represented as a network, this information enables quantitative analysis; it focuses on the relationships between words rather than solely on word frequency, thereby delving into the implicit context of language [59,60].…”