Top management and organizational innovation: review and future directions

Abstract

This study reviews the relevant literature on the relation between top management and the organisational innovation based on 21 empirical studies. This study found that: (1) Top management directly influence organisational innovation via characteristics, leadership and behaviour of the Chief Executive Officer (CEO)/Top Management Team (TMT); (2) Top management influence organisational innovation via mediators. The first mediator is strategic decision or choice made by CEO/TMT. The second is the outcomes of top management. Meanwhile, commitment, communication and involvement of CEO/TMT can serve as mediators between organisational activities and organisational innovation; (3) Three levels of variables moderate the relationship between top management and organisational innovation, the first is the social level, including social–cultural context, culture and technological dynamism; the second is the organisational level, e.g. the novelty of business; the third is the group level, including interfunctional coordination of TMT and managerial creativity of TMT.