Educate to innovate: STEM directors and corporate innovation

Tien Shih HSIEH; Jeong Bon KIM; Ray R. WANG; Zhihong WANG

doi:10.1016/j.jbusres.2021.09.022

Educate to innovate: STEM directors and corporate innovation

Tien Shih HSIEH, Jeong Bon KIM, Ray R. WANG, Zhihong WANG^*

^*Corresponding author for this work

Research output: Journal Publications › Journal Article (refereed) › peer-review

12 Citations (Scopus)

Abstract

Using a sample of 14,245 firm-year observations from 2,579 listed firms in the Chinese capital market, this study investigates whether board directors with an educational background in science, technology, engineering, and mathematics (STEM) are associated with greater corporate innovation. The results suggest that such directors have significant beneficial effects on corporate innovation activities. This study provides novel empirical evidence supporting resource dependence theory and extends the labor economics literature regarding the value of STEM graduates for corporate innovation. The findings have significant implications for policymakers and practitioners, showing that firms with a strategic focus on innovation may find it beneficial to appoint more directors with a background in STEM.

Original language	English
Pages (from-to)	229-238
Number of pages	10
Journal	Journal of Business Research
Volume	138
DOIs	https://doi.org/10.1016/j.jbusres.2021.09.022
Publication status	Published - Jan 2022
Externally published	Yes

Bibliographical note

Our paper has greatly benefitted from the insightful comments and constructive suggestions of Yonggui Wang (the editor) and three anonymous reviewers throughout multiple rounds of the review process. Jeong-Bon Kim acknowledges financial support from the City University of Hong Kong . Ray R. Wang acknowledges financial support from the Hong Kong Baptist University. All errors are our own.

Keywords

Board of directors
Corporate innovation
STEM
STEM directors

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10.1016/j.jbusres.2021.09.022

Cite this

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title = "Educate to innovate: STEM directors and corporate innovation",

abstract = "Using a sample of 14,245 firm-year observations from 2,579 listed firms in the Chinese capital market, this study investigates whether board directors with an educational background in science, technology, engineering, and mathematics (STEM) are associated with greater corporate innovation. The results suggest that such directors have significant beneficial effects on corporate innovation activities. This study provides novel empirical evidence supporting resource dependence theory and extends the labor economics literature regarding the value of STEM graduates for corporate innovation. The findings have significant implications for policymakers and practitioners, showing that firms with a strategic focus on innovation may find it beneficial to appoint more directors with a background in STEM.",

keywords = "Board of directors, Corporate innovation, STEM, STEM directors",

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note = "Our paper has greatly benefitted from the insightful comments and constructive suggestions of Yonggui Wang (the editor) and three anonymous reviewers throughout multiple rounds of the review process. Jeong-Bon Kim acknowledges financial support from the City University of Hong Kong . Ray R. Wang acknowledges financial support from the Hong Kong Baptist University. All errors are our own. ",

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language = "English",

volume = "138",

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journal = "Journal of Business Research",

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AU - HSIEH, Tien Shih

AU - KIM, Jeong Bon

AU - WANG, Ray R.

AU - WANG, Zhihong

N1 - Our paper has greatly benefitted from the insightful comments and constructive suggestions of Yonggui Wang (the editor) and three anonymous reviewers throughout multiple rounds of the review process. Jeong-Bon Kim acknowledges financial support from the City University of Hong Kong . Ray R. Wang acknowledges financial support from the Hong Kong Baptist University. All errors are our own.

PY - 2022/1

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N2 - Using a sample of 14,245 firm-year observations from 2,579 listed firms in the Chinese capital market, this study investigates whether board directors with an educational background in science, technology, engineering, and mathematics (STEM) are associated with greater corporate innovation. The results suggest that such directors have significant beneficial effects on corporate innovation activities. This study provides novel empirical evidence supporting resource dependence theory and extends the labor economics literature regarding the value of STEM graduates for corporate innovation. The findings have significant implications for policymakers and practitioners, showing that firms with a strategic focus on innovation may find it beneficial to appoint more directors with a background in STEM.

AB - Using a sample of 14,245 firm-year observations from 2,579 listed firms in the Chinese capital market, this study investigates whether board directors with an educational background in science, technology, engineering, and mathematics (STEM) are associated with greater corporate innovation. The results suggest that such directors have significant beneficial effects on corporate innovation activities. This study provides novel empirical evidence supporting resource dependence theory and extends the labor economics literature regarding the value of STEM graduates for corporate innovation. The findings have significant implications for policymakers and practitioners, showing that firms with a strategic focus on innovation may find it beneficial to appoint more directors with a background in STEM.

KW - Board of directors

KW - Corporate innovation

KW - STEM

KW - STEM directors

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DO - 10.1016/j.jbusres.2021.09.022

M3 - Journal Article (refereed)

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SN - 0148-2963

VL - 138

SP - 229

EP - 238

JO - Journal of Business Research

JF - Journal of Business Research

ER -

Educate to innovate: STEM directors and corporate innovation

Abstract

Bibliographical note

Keywords

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