The value of managerial ability and general ability for inventor CEOs

Zhilu Lin, Pankaj Patel, Pejvak Oghazi*

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Although inventor CEOs drive firm innovation, widely recognized CEO abilities—general ability or managerial ability—could be central to leveraging CEOs’ invention abilities to drive firm innovation. Using CEO copatentors’ invention ability (defined as CEO patent coauthors’ average number of forward citations over the average number of patents) as an instrument for inventor CEOs, we study the value of CEOs’ general ability and managerial ability in enhancing the influence of inventor CEOs on firm innovation. Firms led by inventor CEOs with higher general abilities spur greater firm innovation. Surprisingly, however, firms led by inventor CEOs with a higher level of managerial ability realized lower firm innovation. Inventor CEOs with greater general abilities also translate firm innovation into better product-market outcomes and spur more firm innovation under better corporate governance. Our findings have implications for the influence of an inventor CEO on firm innovation outcomes.
Original languageEnglish
Peer-reviewed scientific journalJournal of Business Research
Volume135
Pages (from-to)78-98
Number of pages21
ISSN0148-2963
DOIs
Publication statusPublished - 19.06.2021
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • CEOs
  • general ability
  • human capital
  • managerial ability
  • patents

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