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Structural characteristics of top management team cognitive schema and exploratory innovation

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  • Jiang, Yanhui
  • Guo, Furao
  • Xiao, Ting
  • Yin, Jianxiang

Abstract

The top management team's cognitive schema (TMTCS) is a collective strategic frame, pivotal for identifying and exploiting opportunities for exploratory innovation. However, extant literature has predominantly focused on TMTCS content, leaving its structural characteristics largely overlooked. Drawing on the Ability-Motivation-Opportunity framework, we investigate how TMTCS complexity and focus influence exploratory innovation and examine the moderating roles of firm digitalization and executive compensation. We use management discussions and analysis texts from Chinese A-share manufacturing firms from 2018 to 2022 to construct a TMTCS and identify its structural characteristics using Latent Dirichlet Allocation-based text-mining techniques. Our findings indicate that TMTCS complexity promotes exploratory innovation, whereas TMTCS focus exerts a constraining effect. A high level of firm digitalization attenuates the effects of both TMTCS complexity and focus. By contrast, higher executive compensation strengthens the positive effect of TMTCS complexity and mitigates the negative impact of TMTCS focus. Our results clarify the differential effects of TMTCS structural characteristics and underscore the contingent interplay among managerial cognition, digital context, and financial incentives in shaping exploratory innovation.

Suggested Citation

  • Jiang, Yanhui & Guo, Furao & Xiao, Ting & Yin, Jianxiang, 2026. "Structural characteristics of top management team cognitive schema and exploratory innovation," Technological Forecasting and Social Change, Elsevier, vol. 229(C).
    • Handle: RePEc:eee:tefoso:v:229:y:2026:i:c:s0040162526002003
    DOI: 10.1016/j.techfore.2026.124723
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