Abstract
In a Holding Pattern: CEO Political Ideology, the National Political Climate, and R&D Investment
Academy of Management Annual Meeting Proceedings, Vol.2019(1), p.19198
08/01/2019
DOI: 10.5465/AMBPP.2019.19198abstract
Abstract
Abstract only
Consistent, long-term funding of R&D is essential to success in many industries, yet commitment to continuing R&D funding is often contingent on environmental conditions. Importantly, perception of environmental conditions by the CEO will have a fundamental influence on the firm’s funding commitment. In this research we examine the effect of the divergence of the CEO’s political ideology and the national political climate on R&D investment. Using a threat-response perspective, we argue that as the CEO’s political ideology diverges from the national political climate the firm will reduce its R&D investment. We also argue that this reduction will be moderated by three important factors at three distinct levels: CEO vested stock options, firm performance, and industry competition. Using a sample of S&P 500 firms from 2004 to 2010 (a period with multiple changes in the national political climate) we find consistent support for our proposed relationships. This research has significant implications on firm competitiveness and long-term performance given the importance of consistent R&D funding.
Details
- Title: Subtitle
- In a Holding Pattern: CEO Political Ideology, the National Political Climate, and R&D Investment
- Creators
- Matthew Semadeni - Arizona State UniversityM. K. Chin - Indiana University BloomingtonRyan Adam Krause - Texas Christian University
- Resource Type
- Abstract
- Publication Details
- Academy of Management Annual Meeting Proceedings, Vol.2019(1), p.19198
- DOI
- 10.5465/AMBPP.2019.19198abstract
- eISSN
- 2151-6561
- Language
- English
- Date published
- 08/01/2019
- Academic Unit
- Management and Entrepreneurship
- Record Identifier
- 9984937922902771
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