Akademik Veri Yönetim Sistemi
16th International Conference on Management Science and Engineering Management (ICMSEM), Ankara, Türkiye, 3 - 06 Ağustos 2022, cilt.145, ss.172-187
Seniority originating from Chinese Confucian culture implies a ranking order based on age or length of time worked in a company. We argue that seniority, characterized by high power distance and strong hierarchy, can play an influential role in corporate innovation through shaping corporate culture and behavioral motivation. Using the information of age and status about executives to measure the intensity of seniority in firms, our results based on A-share listed company in China from 2007 to 2017 show that firms with higher seniority invest less in innovation and gain fewer patents. Results also show that the negative association between seniority and corporate innovation is more significant for firms in the high-tech industry than firms in the non-high-tech industry. These findings reveal the negative consequences of seniority in firms from the perspective of innovation, which provide implications for corporate culture construction.