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[摘要] :
Abstract
Under the condition of economic distress, such as the world economic crisis in 2008, it is very
common for firms to cut cost to ensure short-term survival. Do firms decrease innovation commitment
under the status of low performance? Theoretically, Failure-leaded change and failure-leaded rigidity
are continuously debated by scholars. This study incorporates organizational/managerial cognition
perspective to performance feedback model, which argues that low performance will motivate
firms/TMT to change strategies to recover the performance discrepancy. We suggested that both of
contextual factors (performance level and available slack) and cognition of TMT influence firm’s
decision making and action. Other than main effects of performance feedback model on innovation,
the shifts of attention focus may be on their aspiration level and function of available slacks, and, then,
moderate the relationships among problemistic/slack search and innovation. That is, TMT’s cognition
acts as boundary condition of performance feedback model. We tested the arguments using panel data
from financial reports of public corporations in Taiwan semiconductor industry from 1997 to 2009. In
order to empirically test main effect and moderate effects of CEO’s attention focus, content analysis of
Letters to shareholders (LTS) is used to capture TMT’s cognition. The empirical results of panel
regression model suggest that TMT’ cognition has distinctive effects on the performance feedback
model. Theoretical, practical implication and future research are discussed.
Keywords: Problemistic Search, Slack Search, Cognition, Shift of Attention Focus, Innovation
Commitment, Content Analysis.
[英文摘要] :
Abstract
Under the condition of economic distress, such as the world economic crisis in 2008, it is very
common for firms to cut cost to ensure short-term survival. Do firms decrease innovation commitment
under the status of low performance? Theoretically, Failure-leaded change and failure-leaded rigidity
are continuously debated by scholars. This study incorporates organizational/managerial cognition
perspective to performance feedback model, which argues that low performance will motivate
firms/TMT to change strategies to recover the performance discrepancy. We suggested that both of
contextual factors (performance level and available slack) and cognition of TMT influence firm’s
decision making and action. Other than main effects of performance feedback model on innovation,
the shifts of attention focus may be on their aspiration level and function of available slacks, and, then,
moderate the relationships among problemistic/slack search and innovation. That is, TMT’s cognition
acts as boundary condition of performance feedback model. We tested the arguments using panel data
from financial reports of public corporations in Taiwan semiconductor industry from 1997 to 2009. In
order to empirically test main effect and moderate effects of CEO’s attention focus, content analysis of
Letters to shareholders (LTS) is used to capture TMT’s cognition. The empirical results of panel
regression model suggest that TMT’ cognition has distinctive effects on the performance feedback
model. Theoretical, practical implication and future research are discussed.
Keywords: Problemistic Search, Slack Search, Cognition, Shift of Attention Focus, Innovation
Commitment, Content Analysis.