Artificial Intelligence, CEO Turnover, and Exploration Orientation in Firm Innovation

References

• Acemoglu D, Autor D, Hazell J, Restrepo P (2022) Artificial intelligence and jobs: Evidence from online vacancies. J. Labor Econom. 40(S1):S293–S340.Crossref, Google Scholar
• Agarwal R, Gao G, DesRoches C, Jha AK (2010) Research commentary—The digital transformation of healthcare: Current status and the road ahead. Inform. Systems Res. 21(4):796–809.Link, Google Scholar
• Agrawal A, Gans JS, Goldfarb A (2019) Artificial intelligence: The ambiguous labor market impact of automating prediction. J. Econom. Perspect. 33(2):31–50.Crossref, Google Scholar
• Aharonson BS, Schilling MA (2016) Mapping the technological landscape: Measuring technology distance, technological footprints, and technology evolution. Res. Policy 45(1):81–96.Crossref, Google Scholar
• Alekseeva L, Azar J, Gine M, Samila S, Taska B (2021) The demand for AI skills in the labor market. Labour Econom. 71:102002.Crossref, Google Scholar
• Amabile TM (1988) A model of creativity and innovation in organizations. Res. Organ. Behav. 10(1):123–167.Google Scholar
• Anderson AS (2022) A lightspeed approach to pandemic drug development. Nature Medicine 28(8):1538–1538.Crossref, Google Scholar
• Aral S, Brynjolfsson E, Gu C, Wang H, Wu D (2024) Understanding the returns from integrated enterprise systems: The impacts of agile and phased implementation strategies. MIS Quart. 48(2):749–774.Crossref, Google Scholar
• Argyres N, Rios LA, Silverman BS (2020) Organizational change and the dynamics of innovation: Formal R&D structure and intrafirm inventor networks. Strategic Management J. 41(11):2015–2049.Crossref, Google Scholar
• Babina T, Fedyk A, He A, Hodson J (2024) Artificial intelligence, firm growth, and product innovation. J. Financial Econom. 151:103745.Crossref, Google Scholar
• Balsmeier B, Fleming L, Manso G (2017) Independent boards and innovation. J. Financial Econom. 123(3):536–557.Crossref, Google Scholar
• Bardhan I, Krishnan V, Lin S (2013) Research note—Business value of information technology: Testing the interaction effect of IT and R&D on Tobin’s Q. Inform. Systems Res. 24(4):1147–1161.Link, Google Scholar
• Barker VL III, Mueller GC (2002) CEO characteristics and firm R&D spending. Management Sci. 48(6):782–801.Link, Google Scholar
• Benbya H, Davenport TH, Pachidi S (2020) Artificial intelligence in organizations: Current state and future opportunities. MIS Quart. Executive 19(4):9–21.Google Scholar
• Benner MJ, Tushman M (2002) Process management and technological innovation: A longitudinal study of the photography and paint industries. Admin. Sci. Quart. 47(4):676–707.Crossref, Google Scholar
• Benner MJ, Tushman ML (2003) Exploitation, exploration, and process management: The productivity dilemma revisited. Acad. Management Rev. 28(2):238–256.Crossref, Google Scholar
• Berente N, Gu B, Recker J, Santhanam R (2021) Managing artificial intelligence. MIS Quart. 45(3):1433–1450.Crossref, Google Scholar
• Bernales A, Valenzuela M, Zer I (2023) Effects of information overload on financial markets: How much is too much? International Finance Discussion Paper 1372, Board of Governors of the Federal Reserve System, Washington, DC.Google Scholar
• Bigley GA, Wiersema MF (2002) New CEOs and corporate strategic refocusing: How experience as heir apparent influences the use of power. Admin. Sci. Quart. 47(4):707–727.Crossref, Google Scholar
• Brav A, Jiang W, Ma S, Tian X (2018) How does hedge fund activism reshape corporate innovation? J. Financial Econom. 130(2):237–264.Crossref, Google Scholar
• Bushman R, Dai Z, Wang X (2010) Risk and CEO turnover. J. Financial Econom. 96(3):381–398.Crossref, Google Scholar
• Calori R, Johnson G, Sarnin P (1994) CEOs’ cognitive maps and the scope of the organization. Strategic Management J. 15(6):437–457.Crossref, Google Scholar
• Carr NG (2003) IT doesn’t matter. Educause Rev. 38:24–38.Google Scholar
• Chae H-C, Koh CE, Prybutok VR (2014) Information technology capability and firm performance: Contradictory findings and their possible causes. MIS Quart. 38(1):305–326.Crossref, Google Scholar
• Chapman KL, Reiter N, White HD, Williams CD (2019) Information overload and disclosure smoothing. Rev. Accounting Stud. 24:1486–1522.Crossref, Google Scholar
• Chen J, Nadkarni S (2017) It’s about time! CEOs’ temporal dispositions, temporal leadership, and corporate entrepreneurship. Admin. Sci. Quart. 62(1):31–66.Crossref, Google Scholar
• Choi I, Chung S, Han K, Pinsonneault A (2021) CEO risk-taking incentives and IT innovation: The moderating role of a CEO’s IT-related human capital. MIS Quart. 45(4):2175–2192.Crossref, Google Scholar
• Chung S, Animesh A, Han K, Pinsonneault A (2019) Software patents and firm value: A real options perspective on the role of innovation orientation and environmental uncertainty. Inform. Systems Res. 30(3):1073–1097.Link, Google Scholar
• Cockburn IM, Henderson R, Stern S (2019) The impact of artificial intelligence on innovation: An exploratory analysis. Agrawal A, Gans J, Goldfarb A, eds. The Economics of Artificial Intelligence: An Agenda (University of Chicago Press, Chicago), 115–146.Crossref, Google Scholar
• Cummings T, Knott AM (2018) Outside CEOs and innovation. Strategic Management J. 39(8):2095–2119.Crossref, Google Scholar
• Datar S, Jordan CC, Kekre S, Rajiv S, Srinivasan K (1997) Advantages of time-based new product development in a fast-cycle industry. J. Marketing Res. 34(1):36–49.Crossref, Google Scholar
• del Carmen Triana M, Richard OC, Su W (2019) Gender diversity in senior management, strategic change, and firm performance: Examining the mediating nature of strategic change in high tech firms. Res. Policy 48(7):1681–1693.Crossref, Google Scholar
• Denis DJ, Denis DK (1995) Performance changes following top management dismissals. J. Finance 50(4):1029–1057.Crossref, Google Scholar
• Eisfeldt AL, Kuhnen CM (2013) CEO turnover in a competitive assignment framework. J. Financial Econom. 109(2):351–372.Crossref, Google Scholar
• El Sawy OA (1985) Personal information systems for strategic scanning in turbulent environments: Can the CEO go on-line? MIS Quart. 9(1):53–60.Crossref, Google Scholar
• Eppler MJ, Mengis J (2004) The concept of information overload—A review of literature from organization science, accounting, marketing, MIS, and related disciplines. Inform. Soc. 20(5):325–344.Crossref, Google Scholar
• Fama EF, French KR (1997) Industry costs of equity. J. Financial Econom. 43(2):153–193.Crossref, Google Scholar
• Fee CE, Hadlock CJ, Pierce JR (2013) Managers with and without style: Evidence using exogenous variation. Rev. Financial Stud. 26(3):567–601.Crossref, Google Scholar
• Ferrer B (2023) P&G explores AI fragrance craft to develop malodor-combating products. Accessed November 14, 2024, https://www.personalcareinsights.com/news/pg-explores-ai-fragrance-craft-to-develop-malodor-combating-products.html.Google Scholar
• Finkelstein S, Hambrick DC (1990) Top-management-team tenure and organizational outcomes: The moderating role of managerial discretion. Admin. Sci. Quart. 35(3):484–503.Crossref, Google Scholar
• Fleming L (2001) Recombinant uncertainty in technological search. Management Sci. 47(1):117–132.Link, Google Scholar
• Frankel AP, Krieger JL, Li D, Papanikolaou D (2023) Evaluation and Learning in R&D Investment. NBER Working Paper No. 31290, National Bureau of Economic Research, Cambridge, MA.Google Scholar
• Gao G, Hitt LM (2012) Information technology and trademarks: Implications for product variety. Management Sci. 58(6):1211–1226.Link, Google Scholar
• Gentry RJ, Harrison JS, Quigley TJ, Boivie S (2021) A database of CEO turnover and dismissal in S&P 1500 firms, 2000–2018. Strategic Management J. 42(5):968–991.Crossref, Google Scholar
• Gilardi F, Alizadeh M, Kubli M (2023) ChatGPT outperforms crowd workers for text-annotation tasks. Proc. Natl. Acad. Sci. USA 120(30):e2305016120.Crossref, Google Scholar
• Goldfarb A, Taska B, Teodoridis F (2023) Could machine learning be a general purpose technology? A comparison of emerging technologies using data from online job postings. Res. Policy 52(1):104653.Crossref, Google Scholar
• Greve HR (2007) Exploration and exploitation in product innovation. Indust. Corporate Change 16(5):945–975.Crossref, Google Scholar
• Griffiths TL (2020) Understanding human intelligence through human limitations. Trends Cognitive Sci. 24(11):873–883.Crossref, Google Scholar
• Griliches Z, Pakes A, Hall BH (1986) The value of patents as indicators of inventive activity. Dasgupta P, Stoneman P, eds. Economic Policy and Technological Performance (Cambridge University Press, Cambridge, MA), 97–124. Google Scholar
• Guo RJ, Lev B, Zhou N (2004) Competitive costs of disclosure by biotech IPOs. J. Accounting Res. 42(2):319–355.Crossref, Google Scholar
• Hall BH, Jaffe AB, Trajtenberg M (2001) The NBER patent citation data file: Lessons, insights and methodological tools. NBER Working Paper No. 8498, National Bureau of Economic Research, Cambridge, MA.Google Scholar
• Hambrick DC, Fukutomi GD (1991) The seasons of a CEO’s tenure. Acad. Management Rev. 16(4):719–742.Crossref, Google Scholar
• Hendricks KB, Singhal VR, Stratman JK (2007) The impact of enterprise systems on corporate performance: A study of ERP, SCM, and CRM system implementations. J. Oper. Management 25(1):65–82.Crossref, Google Scholar
• Hitt LM, Wu D, Zhou X (2002) Investment in enterprise resource planning: Business impact and productivity measures. J. Management Inform. Systems 19(1):71–98.Crossref, Google Scholar
• Hoskisson RE, Hitt MA (1988) Strategic control systems and relative R&D investment in large multiproduct firms. Strategic Management J. 9(6):605–621.Crossref, Google Scholar
• Hsieh T-S, Kim J-B, Wang RR, Wang Z (2022) Educate to innovate: STEM directors and corporate innovation. J. Bus. Res. 138:229–238.Crossref, Google Scholar
• Huang P, Ceccagnoli M, Forman C, Wu D (2022) IT knowledge spillovers, absorptive capacity, and productivity: Evidence from enterprise software. Inform. Systems Res. 33(3):908–934.Link, Google Scholar
• Islam E, Zein J (2020) Inventor CEOs. J. Financial Econom. 135(2):505–527.Crossref, Google Scholar
• Jansen JJ, Van Den Bosch FA, Volberda HW (2006) Exploratory innovation, exploitative innovation, and performance: Effects of organizational antecedents and environmental moderators. Management Sci. 52(11):1661–1674.Link, Google Scholar
• Jessen J (2024) P&G: Bio-AI for enhanced cold water cleaning. Accessed November 14, 2024, https://sustainabilitymag.com/articles/p-g-bio-ai-for-enhanced-cold-water-cleaning.Google Scholar
• Jia N, Rai A, Xu SX (2020) Reducing capital market anomaly: The role of information technology using an information uncertainty lens. Management Sci. 66(2):979–1001.Link, Google Scholar
• Jordan MI, Mitchell TM (2015) Machine learning: Trends, perspectives, and prospects. Science 349(6245):255–260.Crossref, Google Scholar
• Kang Y, Zhu D (2025) Management by originals: Inventor CEOs and firms’ strategic change. Strategy Sci. 10(3):226–244.Link, Google Scholar
• Katila R (2002) New product search over time: Past ideas in their prime? Acad. Management J. 45(5):995–1010.Crossref, Google Scholar
• Katila R, Ahuja G (2002) Something old, something new: A longitudinal study of search behavior and new product introduction. Acad. Management J. 45(6):1183–1194.Crossref, Google Scholar
• Kato T, Long C (2006) Executive turnover and firm performance in China. Amer. Econom. Rev. 96(2):363–367.Crossref, Google Scholar
• Kile CO, Phillips ME (2009) Using industry classification codes to sample high-technology firms: Analysis and recommendations. J. Accounting Auditing Finance 24(1):35–58.Crossref, Google Scholar
• Kiss AN, Libaers D, Barr PS, Wang T, Zachary MA (2020) CEO cognitive flexibility, information search, and organizational ambidexterity. Strategic Management J. 41(12):2200–2233.Crossref, Google Scholar
• Kogan L, Papanikolaou D, Seru A, Stoffman N (2017) Technological innovation, resource allocation, and growth. Quart. J. Econom. 132(2):665–712.Crossref, Google Scholar
• KPMG (2015) Remaining competitive in the technology industry: Implementing growth strategies in the new realities of the tech industry. Accessed February 5, 2022, https://assets.kpmg.com/content/dam/kpmg/pdf/2015/10/remaining-competitive.pdf.Google Scholar
• Landier A, Nair VB, Wulf J (2009) Trade-offs in staying close: Corporate decision making and geographic dispersion. Rev. Financial Stud. 22(3):1119–1148.Crossref, Google Scholar
• Lavie D, Klarner P (2023) When does a CEO’s risk propensity drive exploration in product development? Strategy Sci. 8(1):1–23.Link, Google Scholar
• Lee JM, Kim J, Bae J (2020) Founder CEOs and innovation: Evidence from CEO sudden deaths in public firms. Res. Policy 49(1):103862.Crossref, Google Scholar
• Li K, Mai F, Shen R, Yan X (2021) Measuring corporate culture using machine learning. Rev. Financial Stud. 34(7):3265–3315.Crossref, Google Scholar
• Li Q, Maggitti PG, Smith KG, Tesluk PE, Katila R (2013) Top management attention to innovation: The role of search selection and intensity in new product introductions. Acad. Management J. 56(3):893–916.Crossref, Google Scholar
• Lin C, Liu S, Manso G (2021) Shareholder litigation and corporate innovation. Management Sci. 67(6):3346–3367.Link, Google Scholar
• Liu J, Bharadwaj A (2020) Drug abuse and the internet: Evidence from Craigslist. Management Sci. 66(5):2040–2049.Link, Google Scholar
• Liu Y, Lou B, Zhao X, Li X (2024) Unintended consequences of advances in matching technologies: Information revelation and strategic participation on gig-economy platforms. Management Sci. 70(3):1729–1754.Link, Google Scholar
• Lou B, Wu L (2021) AI on drugs: Can artificial intelligence accelerate drug development? Evidence from a large-scale examination of bio-pharma firms. MIS Quart. 45(3):1451–1482.Crossref, Google Scholar
• Lou B, Sun H, Sun T (2023) GPTs and labor markets in the developing economy: Evidence from China. Preprint, submitted April 26, https://doi.org/10.2139/ssrn.4426461.Google Scholar
• Loucks J, Davenport T, Schatsky D (2018) State of AI in the enterprise. Accessed October 2, 2025, https://www.deloitte.com/content/dam/insights/articles/2024/4780_state-of-ai-in-the-enterprise/DI_State-of-AI-in-the-enterprise-2nd-ed.pdf.Google Scholar
• Loughran T, Ritter J (2004) Why has IPO underpricing changed over time? Financial Management 33(3):5–37.Google Scholar
• Lu T, Zhang Y (2025) 1+ 1> 2? Information, humans, and machines. Inform. Systems Res. 36(1):394–418.Link, Google Scholar
• Lu T, Zhang Y, Li B (2023) Profit vs. equality? The case of financial risk assessment and a new perspective on alternative data. MIS Quart. 47(4):1517–1556.Crossref, Google Scholar
• Luo Y, Cui R, Ma J, Jin Y, Li M, Lin S (2024) Impact of CEO’s scientific research background on the enterprise digital level. Humanities Soc. Sci. Comm. 11(1):1–16.Google Scholar
• March JG (1991) Exploration and exploitation in organizational learning. Organ. Sci. 2(1):71–87.Link, Google Scholar
• Martin GJ, Yurukoglu A (2017) Bias in cable news: Persuasion and polarization. Amer. Econom. Rev. 107(9):2565–2599.Crossref, Google Scholar
• Mihet R, Philippon T (2019) Chapter 3: The economics of big data and artificial intelligence. Disruptive Innovation in Business and Finance in the Digital World (Emerald Publishing Limited, Bingley, UK), 29–43.Crossref, Google Scholar
• Miller D, Shamsie J (2001) Learning across the life cycle: Experimentation and performance among the Hollywood studio heads. Strategic Management J. 22(8):725–745.Crossref, Google Scholar
• Mizik N (2010) The theory and practice of myopic management. J. Marketing Res. 47(4):594–611.Crossref, Google Scholar
• Nonaka I, Von Krogh G (2009) Perspective—Tacit knowledge and knowledge conversion: Controversy and advancement in organizational knowledge creation theory. Organ. Sci. 20(3):635–652.Link, Google Scholar
• O’Reilly CA III (1980) Individuals and information overload in organizations: Is more necessarily better? Acad. Management J. 23(4):684–696.Crossref, Google Scholar
• Pan Y, Huang P, Gopal A (2018) Board independence and firm performance in the IT industry. MIS Quart. 42(3):979–1000.Crossref, Google Scholar
• Pang M-S, Tafti A, Krishnan MS (2016) Do CIO IT budgets explain bigger or smaller governments? Theory and evidence from US state governments. Management Sci. 62(4):1020–1041.Link, Google Scholar
• Park Y, Pavlou PA, Saraf N (2020) Configurations for achieving organizational ambidexterity with digitization. Inform. Systems Res. 31(4):1376–1397.Link, Google Scholar
• Pfizer (2022) Pfizer is using AI to discover breakthrough medicines. Accessed June 3, 2023, https://insights.pfizer.com/pfizer-is-using-ai-to-discover-breakthrough-medicines/.Google Scholar
• Phelps CC (2010) A longitudinal study of the influence of alliance network structure and composition on firm exploratory innovation. Acad. Management J. 53(4):890–913.Crossref, Google Scholar
• Porter ME, Nohria N (2018) How CEOs manage time. Harvard Bus. Rev. 96(4):42–51.Google Scholar
• Procter & Gamble (2022) Leveraging technology to improve the lives of P&G consumers. Accessed November 14, 2024, https://us.pg.com/blogs/executive-talks-innovation-vittorio-cretella/.Google Scholar
• PwC (2022) AI business survey. Accessed November 14, 2024, https://www.pwc.com/us/en/tech-effect/ai-analytics/ai-business-survey.html.Google Scholar
• Ravichandran T, Han S, Mithas S (2017) Mitigating diminishing returns to R&D: The role of information technology in innovation. Inform. Systems Res. 28(4):812–827.Link, Google Scholar
• Reader R (2021) Pfizer’s CEO: 3 key decisions helped it develop a COVID-19 vaccine in record time. Fast Company Online (March 10), https://www.fastcompany.com/90611856/pfizer-ceo-reasons-for-fast-covid-19-vaccine-development.Google Scholar
• Rosenkopf L, Nerkar A (2001) Beyond local search: Boundary‐spanning, exploration, and impact in the optical disk industry. Strategic Management J. 22(4):287–306.Crossref, Google Scholar
• Sadler-Smith E, Shefy E (2004) The intuitive executive: Understanding and applying “gut feel” in decision-making. Acad. Management Perspect. 18(4):76–91.Crossref, Google Scholar
• Schanke S, Burtch G, Ray G (2021) Estimating the impact of “humanizing” customer service chatbots. Inform. Systems Res. 32(3):736–751.Link, Google Scholar
• Shalley CE, Gilson LL (2004) What leaders need to know: A review of social and contextual factors that can foster or hinder creativity. Leadership Quart. 15(1):33–53.Crossref, Google Scholar
• Singh H, Kryscynski D, Li X, Gopal R (2016) Pipes, pools, and filters: How collaboration networks affect innovative performance. Strategic Management J. 37(8):1649–1666.Crossref, Google Scholar
• Suk I, Lee S, Kross W (2021) CEO turnover and accounting earnings: The role of earnings persistence. Management Sci. 67(5):3195–3218.Link, Google Scholar
• Susarla A, Gopal R, Thatcher JB, Sarker S (2023) The Janus effect of generative AI: Charting the path for responsible conduct of scholarly activities in information systems. Inform. Systems Res. 34(2):399–408.Link, Google Scholar
• Tambe P, Hitt LM (2012) The productivity of information technology investments: New evidence from IT labor data. Inform. Systems Res. 23(3-part-1):599–617.Link, Google Scholar
• Toole A, Jones C, Madhavan S (2021) PatentsView: An open data platform to advance science and technology policy. Preprint, submitted June 30, http://dx.doi.org/10.2139/ssrn.3874213.Google Scholar
• Trafton A (2020) Artificial intelligence yields new antibiotic: A deep-learning model identifies a powerful new drug that can kill many species of antibiotic-resistant bacteria. Accessed November 14, 2024, https://news.mit.edu/2020/artificial-intelligence-identifies-new-antibiotic-0220.Google Scholar
• Tushman ML, Rosenkopf L (1996) Executive succession, strategic reorientation and performance growth: A longitudinal study in the US cement industry. Management Sci. 42(7):939–953.Link, Google Scholar
• Von Hippel E (1994) “Sticky information” and the locus of problem solving: Implications for innovation. Management Sci. 40(4):429–439.Link, Google Scholar
• Wang X, Wu L (2025) Artificial intelligence, lean startup method, and product innovations. Management Sci., ePub ahead of print August 26, https://doi.org/10.1287/mnsc.2022.03905. Google Scholar
• Wang W, Gao G, Agarwal R (2024a) Friend or foe? Teaming between artificial intelligence and workers with variation in experience. Management Sci. 70(9):5753–5775.Abstract, Google Scholar
• Wang X, Wu L, Hitt LM (2024b) Social media alleviates venture capital funding inequality for women and less connected entrepreneurs. Management Sci. 70(2):1093–1112.Link, Google Scholar
• Wang H, Fu T, Du Y, Gao W, Huang K, Liu Z, Chandak P, Liu S, Van Katwyk P, Deac A (2023) Scientific discovery in the age of artificial intelligence. Nature 620(7972):47–60.Crossref, Google Scholar
• Weng DH, Lin Z (2014) Beyond CEO tenure: The effect of CEO newness on strategic changes. J. Management 40(7):2009–2032.Google Scholar
• Wiersema MF, Bantel KA (1992) Top management team demography and corporate strategic change. Acad. Management J. 35(1):91–121.Crossref, Google Scholar
• World Intellectual Property Organization (2019) WIPO Technology Trends 2019: Artificial Intelligence (World Intellectual Property Organization, Geneva).Google Scholar
• Wu D, Ding M, Hitt LM (2013) IT implementation contract design: Analytical and experimental investigation of IT value, learning, and contract structure. Inform. Systems Res. 24(3):787–801.Link, Google Scholar
• Wu L, Hitt L, Lou B (2020) Data analytics, innovation, and firm productivity. Management Sci. 66(5):2017–2039.Link, Google Scholar
• Wu L, Jin F, Hitt LM (2018) Are all spillovers created equal? A network perspective on information technology labor movements. Management Sci. 64(7):3168–3186.Link, Google Scholar
• Wu L, Lou B, Hitt L (2019) Data analytics supports decentralized innovation. Management Sci. 65(10):4863–4877.Link, Google Scholar
• Wu L, Lou B, Hitt L (2025) Innovation strategy after IPO: How AI analytics spurs innovation after IPO. Management Sci. 71(3):2360–2389.Link, Google Scholar
• Xu J, Li H (2023) Managerial human capital and corporate R&D investment. J. Econom. Behav. Organ. 213:151–171.Crossref, Google Scholar
• Yoo Y, Henfridsson O, Kallinikos J, Gregory R, Burtch G, Chatterjee S, Sarker S (2024) The next frontiers of digital innovation research. Inform. Systems Res. 35(4):1507–1523.Link, Google Scholar
• Zhang Y, Rajagopalan N (2010) Once an outsider, always an outsider? CEO origin, strategic change, and firm performance. Strategic Management J. 31(3):334–346.Crossref, Google Scholar
• Zhu Q, Hu S, Shen W (2020) Why do some insider CEOs make more strategic changes than others? The impact of prior board experience on new CEO insiderness. Strategic Management J. 41(10):1933–1951.Crossref, Google Scholar