Announcements

Marketing Seminar- Shuba Srinivasan

Author: CASE
Time: 13:30
Location: CASE 127

KOC UNIVERSITY
FACULTY OF ADMINISTRATIVE SCIENCES AND ECONOMICS
MARKETING SEMINAR

16 February 2018-FRIDAY
CASE 127- 13:30-15:00

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Speaker :   Shuba Srinivasan is the Adele and Norman Barron Professor of Management and Professor of Marketing at Boston University.

Title       :  The View from the Top: How Chief Executive Officers Impacts Firms’ Innovation Output

Time      :  13:30-15:00

Place      : CASE 127

Abstract: The role of CEOs in fostering innovation is increasingly scrutinized, but evidence on their ability to increase the innovation output of their firms is limited. We highlight an important characteristic of CEOs that is associated with higher innovation output: their marketing expertise. Using the upper echelon theory we present arguments to support the role of this characteristic, as well as contingencies that moderate its impact on two metrics of firm-level innovation: patent applications and new product announcements. To empirically test our hypotheses we use a dataset of 652 new CEO appointments and we examine changes in innovation output brought about by new executive leadership. We find that new CEOs with marketing expertise increase their firms’ patent applications and new product announcements, and this effect is further magnified for firms whose new CEO has a wider professional network or has been appointed from the inside of the firm. Moreover, we also show that investors react favorably to the appointment of a CEO with marketing expertise but have a more muted reaction to subsequent new product announcements issued under the new CEOs’ leadership. Our findings bring novel insights to the literature on CEO expertise, firm innovation and the valuation of this innovation.