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The Influence of Managerial Mindfulness on Innovation: Evidence from China

Author

Listed:
  • Yuanyuan Hu

    (School of Economics and Management, Tongji University, Shanghai 200092, China)

  • Xiaoping Zhao

    (Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai 200030, China)

  • Yang Chen

    (Department of Biochemical Engineering, University College London, London WC1E 6BT, UK)

Abstract

This study attempts to investigate the influence of managerial mindfulness on firm innovation. Managerial mindfulness is defined as a collective psychological state shared by top management team (TMT) members and represents their collective attention to present-moment events and experiences. Drawing from two psychological mechanisms of mindfulness, we argue that managerial mindfulness can positively affect R&D intensity—a proxy for firm innovation. The first psychological mechanism is that mindfulness facilitates self-regulation. By facilitating self-regulation, managerial mindfulness enables TMT members to behave less opportunistically and act in a less self-serving manner. Therefore, TMT members are concerned about the shareholders’ interests in long-term value creation and hence are willing to take more risk such as investing more in R&D. The second psychological mechanism is that mindfulness facilitates goal-pursuit, especially for intrinsic goals. Mindful TMT members are autonomously motivated to pursue goals that are more satisfying, persist for longer durations, and show greater success than goals that are extrinsically motivated; mindful TMT members are likely to view R&D as an intrinsic goal to pursue. In addition to the main effect, this study also examines several moderators and suggests that the positive relationship between managerial mindfulness and R&D intensity is moderated by firm age, slack resources, and past financial performance. Specifically, this relationship becomes weaker when a firm grows older and the firm has better past financial performance, while it is stronger when a firm has greater slack resources. To empirically test our hypotheses, we rely on a sample of Chinese listed companies and collect data from the China Stock Market and Accounting Research (CSMAR). Feasible generalized least squares (FGLS) regression is adopted due to the presence of significant autocorrelations and heteroskedasticity. The empirical analyses provide full support for our hypotheses. Therefore, this study contributes to literature of mindfulness, as well as studies on TMT’s influence on firm strategy and decision-making.

Suggested Citation

  • Yuanyuan Hu & Xiaoping Zhao & Yang Chen, 2019. "The Influence of Managerial Mindfulness on Innovation: Evidence from China," Sustainability, MDPI, vol. 11(10), pages 1-20, May.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:10:p:2914-:d:233465
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    2. Unai Arzubiaga & Manel Plana-Farran & Agnès Ros-Morente & Albert Joana & Sílvia Solé, 2021. "Mindfulness and Next-Generation Members of Family Firms: A Source for Sustainability," Sustainability, MDPI, vol. 13(10), pages 1-13, May.
    3. Manel Plana-Farran & Àngel Blanch & Silvia Solé, 2022. "The Role of Mindfulness in Business Administration (B.A.) University Students’ Career Prospects and Concerns about the Future," IJERPH, MDPI, vol. 19(3), pages 1-10, January.
    4. Panditharathne Nishantha Kumara Wijesekara Panditharathne & Zhixia Chen, 2021. "An Integrative Review on the Research Progress of Mindfulness and Its Implications at the Workplace," Sustainability, MDPI, vol. 13(24), pages 1-27, December.
    5. Mavis Agyemang Opoku & Suk Bong Choi & Seung-Wan Kang, 2019. "Servant Leadership and Innovative Behaviour: An Empirical Analysis of Ghana’s Manufacturing Sector," Sustainability, MDPI, vol. 11(22), pages 1-18, November.
    6. Chunjia Hu & Haili Zhang & Michael Song & Dapeng Liang, 2019. "Past Performance, Organizational Aspiration, and Organizational Performance: The Moderating Effect of Environmental Jolts," Sustainability, MDPI, vol. 11(15), pages 1-16, August.

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