Unleashing creative potential: The role of stable institutional ownership in exploratory innovation

IF 7.5 1区管理学 Q1 MANAGEMENT

Research Policy Pub Date : 2025-01-21 DOI:10.1016/j.respol.2024.105166

Xin Deng , Hesham Ali , Heba Aboelkheir

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引用次数: 0

Abstract

This study investigates the impact of institutional ownership (IO) stability on firms’ pursuit of exploratory innovation. Utilizing a comprehensive dataset of public U.S. firms from 1990 to 2018, we provide robust evidence that firms with stable IO are more inclined to engage in exploratory innovation. Our analysis identifies three key mechanisms through which IO stability facilitates exploratory innovation: disciplinary, informational, and resource-provision channels. Considering the heterogeneous nature of institutional investors, our extended analysis indicates that the positive effect of stable IO on exploratory innovation is driven by active institutional investors, while the stability of both institutional blockholders and non-blockholders contributes to increased exploratory innovation. Furthermore, we find that the nexus between IO stability and exploratory innovation is more pronounced in firms with concentrated IO. Finally, we find that IO stability also leads to a high level of breakthrough innovation. Overall, our study highlights the critical role that stable IO plays in facilitating firms to overcome learning traps and fostering an environment conducive to exploratory activities within organizations.

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来源期刊

Research Policy MANAGEMENT-

CiteScore

12.80

自引率

6.90%

发文量

182

期刊介绍： Research Policy (RP) articles explore the interaction between innovation, technology, or research, and economic, social, political, and organizational processes, both empirically and theoretically. All RP papers are expected to provide insights with implications for policy or management. Research Policy (RP) is a multidisciplinary journal focused on analyzing, understanding, and effectively addressing the challenges posed by innovation, technology, R&D, and science. This includes activities related to knowledge creation, diffusion, acquisition, and exploitation in the form of new or improved products, processes, or services, across economic, policy, management, organizational, and environmental dimensions.