Research On The Impact Of TMT Social Capital And Innovation Mode On Corporate Performance

With the rapid development of the Internet technology,the increasingly diversified customer needs and the changing business competitive area,how to strategically select and obtain good business performance in a dynamic environment is a major challenge for entrepreneurs.Innovation strategy plays an important role in the development of the company.Independent innovation is not only a national strategy,but also an inevitable choice for companies to adapt to the market and achieve long-term development.In making innovative strategic choices,different companies may make different strategies and obtain different corporate performance under the same environmental background.What kind of factors cause this phenomenon?In 1984,scholars Hambrick and Mason first proposed the famous Upper Echelons Theory and provided a new theoretical perspective for corporate strategic choice.According to this theory,the top management team is the core group for strategic decision-making,and their own values and characteristics influence the company's strategy.However,this theory focuses too much on the individual internal psychological mechanism while neglects the external social attributes.In essence,the social network of members of the top management team contains social capital that others cannot replicate,which is undoubtedly an important factor for enterprises to gain competitive advantage.So some scholars began to pay attention to the social network of the top management team.Shipilov(2006)initially introduced the concept of social capital of the top management team.He proposed that the social capital brought by the social network from top management team affects strategic decisions and corporate performance to some extent.Based on this background,this study attempts to answer the following questions through qualitative and quantitative empirical research methods:In a dynamic environment,will top management team social capital influences the choice of organizational-level innovation strategies and corporate performance?If the answer is yes,what is the mechanism of it?This study constructed a model of "social capital of top management team","innovation mode","corporate performance",and "environmental dynamism",and conducted empirical research using 189 high-tech companies in the manufacturing sub-sector of Shanghai and Shenzhen stock markets as research samples.The empirical results show that the differences in the social capital of the top management teams can affect the enterprise's innovation model and corporate performance.The enterprise innovation model plays an intermediary role in the relationship between the top management team's social capital and corporate performance.In addition,in the context of a dynamic environment,the impact of the social capital of top management teams on exploratory innovation,and the impact of exploratory innovation on corporate performance are even more significant.The related analysis and discussion of this research will help to further explore the effect of the social capital of top management teams on corporate performance,provide a reference for people to better understand the implication of the executive team on strategic decision-making process,and increase the managers' ability to enrich their social capital.It can also provide guidance for companies in making innovation decisions.