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How do CEOs seek advice from CMOs vs. CTOs in radical innovation decision making under uncertainty?

Author

Listed:
  • Wilden, Ralf
  • Lin, Nidthida
  • Chirico, Francesco
  • Khan, Saad

Abstract

In situations of high uncertainty, Chief Executive Officer (CEO) advice seeking is of critical importance to access additional knowledge to inform their strategic decisions, such as in relation to radical innovation. Yet, little research has investigated the underlying mechanisms of CEO advice seeking in radical innovation decisions – especially when CEOs face conflicting advice. Using data from two discrete choice experiments (249 CEOs and 155 CEOs, respectively), complemented by ten qualitative interviews with CEOs, Chief Marketing Officers (CMOs) and Chief Technology Officers (CTOs), we investigate how conflicting advice from CMOs and CTOs affects CEO choices in radical innovation projects, contingent on various degrees of market and technological uncertainty. Subsequently, by using additional survey data (166 CEOs), we assess how external advice seeking affects the relationship between advice seeking from CTOs and CMOs and firms' radical innovation performance under market and technological uncertainty. Given conflicting CMO vs. CTO advice, our results indicate that when a radical innovation project is characterized by high technological uncertainty, CEOs are more likely to choose radical innovation projects that the CTO supports, even if the CMO does not. Yet, surprisingly, we do not find that CEOs' radical innovation decisions are affected by CMOs' supporting advice when an innovation project faces high market uncertainty. Finally, we find that the positive effect of CEO advice seeking from CMOs (CTOs) on firms' radical innovation performance is strengthened if the CEO also seeks external advice under high market (technological) uncertainty.

Suggested Citation

  • Wilden, Ralf & Lin, Nidthida & Chirico, Francesco & Khan, Saad, 2025. "How do CEOs seek advice from CMOs vs. CTOs in radical innovation decision making under uncertainty?," Research Policy, Elsevier, vol. 54(10).
    • Handle: RePEc:eee:respol:v:54:y:2025:i:10:s0048733325001532
    DOI: 10.1016/j.respol.2025.105324
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