| Decline led a huge challenges to the survival and development to the enterprises.How to deal with the decline effectively to achieve performance turnaround is a realistic problem to be solved urgently.Executives play an important role in the turnaround after decline.Existing literature more committed to executives,however,changes to the necessity of the performance turnaround and researching the declining executives strategic choice,but the research conclusion is differ.Moreover,it ignores the influence of the heterogeneity of senior executives’ background characteristics and lacks in-depth thinking about what kind of senior executives with background characteristics are suitable for leading declining enterprises to achieve performance turnaround.This has aroused research interest in how the characteristics of different executive backgrounds influence the performance turnaround of declining enterprises.Technological innovation is an inevitable requirement for enterprises to enhance competitiveness and achieve high quality development.In the face of decline,will executives from different backgrounds choose technological innovation as a strategic action? Accordingly,can technological innovation bring the performance turnaround of declining enterprises? At the same time,The resources of a declining enterprises continue to be consumed internally,and the declining enterprises needs to rely on slack resources to carry out its strategic actions.but the exertion of slack resources and their role varies according to the situation in which the enterprise is located.Therefore,in a declining dilemma,how do slack resources affect the strategic responses of executives with different background characteristics to technological innovation and how do they influence the relationship between the background characteristics of executives,technological innovation and the performance turnaround of the declining enterprises?In view of this,this paper attempts to solve three core issues around the central issue of the performance turnaround of declining enterprises,in order to explore the mechanism of how the characteristics of executive background influence the performance turnaround of declining enterprises:(1)What is the logic of the turnaround of the performance of the declining enterprises influenced by three different background characteristics,such as academic experience,overseas experience and political connection?(2)Will the background characteristics of senior executives influence the choice of technological innovation in declining enterprises? Can performance turnaround be achieved through technological innovation? Taking technological innovation input and technological innovation output as the essential representative and concrete embodiment of the strategic action of technological innovation in declining enterprises,this paper makes a concrete analysis.(3)What effect can slack resources and their composition have on the relationship between the background characteristics of senior executives,technological innovation and the performance reversal of declining firms?To effectively answer the above questions,this article by the Upper Echelons Theory,Imprinting Theory,Performance Feedback Theory and Principal-Agent Theory as the foundation,designed the three studies and puts forward the corresponding research hypothesis,based on the Shanghai and shenzhen a-share manufacturing listed companies from 2011 to 2019 collected data and manual executives to empirically background characteristics data,the following research conclusions: Firstly,The background characteristics of senior executives are an important driving factor for the performance turnaround of enterprises in decline.Senior executives with academic experience,overseas experience and political connection have a significant positive impact on the performance turnaround of declining enterprises,and the higher the proportion of senior executives,the more conducive to the successful performance turnaround of declining enterprises.The cognitive brand and ability brand of executives endowed by different background characteristics are the internal logic that affects the performance turnaround of declining enterprises.Secondly,In the context of decline,senior executives with academic and overseas experience will choose the strategic action of technological innovation to cope with the decline,and strengthen the input intensity and output level of technological innovation.But politically connected executives do not choose technological innovation as a strategic action to cope with the decline,which confirms the "curse effect" of political connection on technological innovation.The specific innovation behavior determined by technological innovation strategy has different effects on the performance reversal of declining enterprises.Increasing technological innovation input can not turnaround the decline of enterprises in decline,but only accelerate the consumption of resources,which is more adverse to performance turnaround while paying attention to technological innovation output can significantly improve the economic benefits of enterprises,and turnaround the further decline of enterprises.Therefore,there is no mediating effect of technological innovation input between senior executives’ academic experience,overseas experience and the performance turnaround of declining enterprises,but there is a masking effect.Technological innovation outputs have a mediating effect on executive academic experience,overseas experience and the performance turnaround of declining enterprises.Thirdly,Both unabsorbed slack and absorbed slack have a negative moderating effect on the mediating effect of technological innovation output on executive academic experience,executive overseas experience and the performance turnaround of declining enterprises,That is,the more slack there are,the less promotion effect of senior executives with academic and overseas experience on technological innovation output,and accordingly,the more unfavorable it is for declining enterprises to realize performance turnaround.The potential theoretical contributions of this paper are as follows: Firstly,This paper constructs a theoretical model based on the background characteristics of executives to turnaround the performance of declining enterprises.This paper introduces the Imprinting Theory derived from biology and combines it with the Upper Echelons Theory to make up for the deficiency of the low explanatory power of the respective studies,and analyzes the internal mechanism of the impact of different executive background characteristics on the performance turnaround of declining enterprises from the aspects of cognitive branding and ability branding.Through the introduction of the interdisciplinary theory,This paper provides theoretical support for explaining the impact of different background characteristics on the performance turnaround of declining enterprises.Secondly,We find the mediating transmission mechanism that the background characteristics of senior executives influence the performance turnaround of declining enterprises.From the perspective of Imprinting Theory,this paper explains the unique characteristics of executives with different backgrounds in terms of cognition and ability,and how to choose technological innovation strategies to affect the performance turnaround of declining enterprises.This paper expands the explanation of the strategic decision-making process and its inner relationship from the perspective of Imprinting Theory.At the same time,this paper discusses the effect of technological innovation strategy on the performance turnaround of declining enterprises,and discusses the mediating mechanism of the effect of technological innovation strategy on executive background characteristics on the performance turnaround of declining enterprises,which is a beneficial supplement to the research on the actual effect of technological innovation strategy on the performance turnaround of declining enterprises.Finally,Expanding the research scope of the effect of slack resources on the performance turnaround of declining enterprises.Is different from the existing research of slack resources to adjust the relationship between executives and enterprise decision-making behavior,this study will be redundant resources are divided into unabsorbed slack and absorbed slack two dimensions,by regulating the mediation model is set up,revealing when recession enterprises have more unabsorbed slack and absorbed slack,How executives with different background and characteristics respond to technology innovation strategies,and how to influence the role of executive background and characteristics,technological innovation and the the performance turnaround of declining enterprises. |
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