On or off: The triggering effect of underperformance duration on cooperative innovation

Authors

Taoyong Su, Tongji University
Yuzhu Yu, Tongji University
Yongheng Chen, Shanghai Normal University
Wanrong Hou, The University of Texas Rio Grande ValleyFollow

Document Type

Article

Publication Date

8-2023

Abstract

By complementing performance feedback theory with organizational pressure, we argue that underperformance duration breaks the balance between growth pressure and survival pressure and triggers the shift from “on” to “off” of cooperative innovation, which shows an inverted U-shaped relationship between the duration of underperformance and cooperative innovation. Moreover, compared with firms with historical underperformance, firms with peer underperformance will reach the inflection point of the inverted U-shaped relationship after a longer duration. In addition, we find that managerial overconfidence weakens the above relationship. Our hypotheses receive general support by testing the sample of 70 public biopharmaceutical manufacturing companies between 2007 and 2019 in China.

Comments

Original published version available at https://doi.org/10.1016/j.technovation.2023.102817

Recommended Citation

Su, T., Yu, Y., Chen, Y. and Hou, W., 2023. On or off: The triggering effect of underperformance duration on cooperative innovation. Technovation, 126, p.102817. https://doi.org/10.1016/j.technovation.2023.102817

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Publication Title

Technovation

DOI

10.1016/j.technovation.2023.102817