Satisfied with the status quo or strive for betterment: The relationship between CEOs' tenure and corporate innovation inertia

This paper examines the significant yet overlooked connection between CEO tenure and corporate innovation lethargy, as assessed inversely by innovation sustainability, during a period of global market volatility and technological upheaval. Although innovation is essential for a company's existence, inertia—evidenced by a reluctance to revolutionary change—diminishes long-term competitiveness. Current research highlights organizational learning and dynamic capacities but neglects the influence of leadership continuity on innovative behavior. This paper demonstrates that prolonged CEO tenure markedly diminishes innovation inertia through two primary mechanisms: augmented managerial incentives (aligning executive interests with long-term innovation via equity) and improved organizational resource-coordination capabilities (bridging departmental silos to facilitate cross-functional innovation). These findings challenge conventional narratives that portray extended tenure as inherently detrimental, instead presenting leadership continuity as a deliberate facilitator of resilience. This study enhances comprehension of innovation management by emphasizing CEO tenure as a pivotal factor for maintaining innovation, providing practical insights for governance and strategic implementation.