IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2104.07476.html
   My bibliography  Save this paper

Mission Statement Effect on Research and Innovation Performance

Author

Listed:
  • Julian D. Cortes
  • Diego Tellez
  • Jesus Godoy

Abstract

The mission statement (MS) is the most used organizational strategic planning tool worldwide. The relationship between an MS and an organizations financial performance has been shown to be significantly positive, albeit small. However, an MSs relationship to the macroeconomic environment and to organizational innovation has not been investigated. We implemented a Structural Equation Modeling using the SCImago Institutional Ranking (SIR) as a global baseline sample and assessment of organizational research and innovation (RandI), an automated MS content analysis, and the Economic Complexity Index (ECI) as a comprehensive macroeconomic environment measure. We found that the median performance of organizations that do not report an MS is significantly higher than that of reporting organizations, and that a path-dependence driven by the State's long-term view and investment is a better explanatory variable for organizational RandI performance than the MS construct or the intermediate-term macroeconomic environment.

Suggested Citation

  • Julian D. Cortes & Diego Tellez & Jesus Godoy, 2021. "Mission Statement Effect on Research and Innovation Performance," Papers 2104.07476, arXiv.org.
    • Handle: RePEc:arx:papers:2104.07476
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2104.07476
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ashish Arora & Sharon Belenzon & Andrea Patacconi & Jungkyu Suh, 2020. "The Changing Structure of American Innovation: Some Cautionary Remarks for Economic Growth," Innovation Policy and the Economy, University of Chicago Press, vol. 20(1), pages 39-93.
    2. David Argente & Salomé Baslandze & Douglas Hanley & Sara Moreira, 2020. "Patents to Products: Product Innovation and Firm Dynamics," FRB Atlanta Working Paper 2020-4a, Federal Reserve Bank of Atlanta.
    3. Richard B. Robinson & John A. Pearce, 1983. "The impact of formalized strategic planning on financial performance in small organizations," Strategic Management Journal, Wiley Blackwell, vol. 4(3), pages 197-207, July.
    4. Tânia Pinto & Aurora A. C. Teixeira, 2020. "The impact of research output on economic growth by fields of science: a dynamic panel data analysis, 1980–2016," Scientometrics, Springer;Akadémiai Kiadó, vol. 123(2), pages 945-978, May.
    5. Hector Guerrero, 2019. "Analysis of Quantitative Data," Springer Books, in: Excel Data Analysis, edition 2, chapter 0, pages 59-101, Springer.
    6. Rajiv Nag & Donald C. Hambrick & Ming‐Jer Chen, 2007. "What is strategic management, really? Inductive derivation of a consensus definition of the field," Strategic Management Journal, Wiley Blackwell, vol. 28(9), pages 935-955, September.
    7. Kristina Rennekamp, 2012. "Processing Fluency and Investors’ Reactions to Disclosure Readability," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 50(5), pages 1319-1354, December.
    8. Ireland, R. Duane & Hirc, Michael A., 1992. "Mission statements: Importance, challenge, and recommendations for development," Business Horizons, Elsevier, vol. 35(3), pages 34-42.
    9. Mersland, Roy & Nyarko, Samuel Anokye & Szafarz, Ariane, 2019. "Do social enterprises walk the talk? Assessing microfinance performances with mission statements," Journal of Business Venturing Insights, Elsevier, vol. 11(C), pages 1-1.
    10. Diego F. Téllez & Jes�s M. Godoy, 2017. "Mission Power and Firm Financial Performance," Documentos de Trabajo de Valor Público 15655, Universidad EAFIT.
    11. Christopher Kenneth, Mark C. Bart Baetz, 1998. "The Relationship Between Mission Statements and Firm Performance: An Exploratory Study," Journal of Management Studies, Wiley Blackwell, vol. 35(6), pages 823-853, November.
    12. Mersland, Roy & Nyarko, Samuel Anokye & Szafarz, Ariane, 2019. "Do social enterprises walk the talk? Assessing microfinance performances with mission statements," Journal of Business Venturing Insights, Elsevier, vol. 11(C), pages 1-1.
    13. Baslandze, Salomé & Argente, David & Hanley, Douglas & Moreira, Sara, 2020. "Patents to Products: Product Innovation and Firm Dynamics," CEPR Discussion Papers 14692, C.E.P.R. Discussion Papers.
    14. Christopher L. Shook & David J. Ketchen & G. Tomas M. Hult & K. Michele Kacmar, 2004. "An assessment of the use of structural equation modeling in strategic management research," Strategic Management Journal, Wiley Blackwell, vol. 25(4), pages 397-404, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dmitry A. Ruban & Natalia N. Yashalova & Vladimir A. Ermolaev, 2021. "Is Environment a Strategic Priority of the Leading Energy Companies? Evidence from Mission Statements," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    2. Anastasia Cozarenco & Ariane Szafarz, 2025. "Bias in Mission-Driven Finance: Discrimination or Mission Drift?," Working Papers CEB 25-004, ULB -- Universite Libre de Bruxelles.
    3. Giuseppe Berlingieri & Maarten De Ridder & Danial Lashkari & Davide Rigo, 2025. "Creative destruction through innovation bursts," CEP Discussion Papers dp2095, Centre for Economic Performance, LSE.
    4. Julian D. Cortes & Liliana Rivera & Katerina Bohle Carbonell, 2021. "Mission Statements in Universities: Readability and performance," Papers 2104.07438, arXiv.org.
    5. Cecilia Varendh-Mansson & Tyler Wry & Ariane Szafarz, 2020. "Anchors Aweigh? Then Time to Head Upstream Why we Need to Theorize “Mission” before “Drift”," Working Papers CEB PostPrintCEB024, ULB -- Universite Libre de Bruxelles.
    6. Hege, Ulrich & Li, Kai & Zhang, Yifei, 2025. "Climate Innovation and Carbon Emissions: Evidence from Supply Chain Networks," TSE Working Papers 25-1608, Toulouse School of Economics (TSE).
    7. Ufuk Akcigit & Salomé Baslandze & Francesca Lotti, 2023. "Connecting to Power: Political Connections, Innovation, and Firm Dynamics," Econometrica, Econometric Society, vol. 91(2), pages 529-564, March.
    8. Akcigit, Ufuk & Goldschlag, Nathan, 2023. "Where Have All the "Creative Talents" Gone? Employment Dynamics of US Inventors," CEPR Discussion Papers 18035, C.E.P.R. Discussion Papers.
    9. Ufuk Akcigit & Nathan Goldschlag, 2025. "Measuring the characteristics and employment dynamics of U.S. inventors," Journal of Economic Growth, Springer, vol. 30(2), pages 237-269, June.
    10. Shannon Orr & Rebecca Humphreys, 2012. "Mission Rivalry: Use and Preservation Conflicts in National Parks Policy," Public Organization Review, Springer, vol. 12(1), pages 85-98, March.
    11. Simon Cornée & Anastasia Cozarenco & Ariane Szafarz, 2023. "The Changing Role of Banks in the Financial System: Social Versus Conventional Banks," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Chrysovalantis Gaganis & Fotios Pasiouras & Menelaos Tasiou & Constantin Zopounidis (ed.), Sustainable Finance and ESG, pages 1-25, Palgrave Macmillan.
    12. Matterne, Ilias & Roggeman, Annelies & Verleyen, Isabelle, 2024. "The impact of environmental taxation on innovation: Evidence from Canada," Energy Policy, Elsevier, vol. 187(C).
    13. Jay Mitra & Mariusz Sokolowicz & Ursula Weisenfeld & Agnieszka Kurczewska & Silke Tegtmeier, 2020. "Citizen Entrepreneurship: A Conceptual Picture of the Inclusion, Integration and Engagement of Citizens in the Entrepreneurial Process," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 6(2), pages 242-260, July.
    14. Antonin Bergeaud & Julia Schmidt & Riccardo Zago, 2022. "Patents that Match your Standards: Firm-level Evidence on Competition and Growth," Working papers 876, Banque de France.
    15. Zineb Aouni & Marek Hudon & Anaïs Périlleux & Tyler Wry, 2024. "Crowdfunding Social Ventures: Who Will Reward (or Punish) Hybridity?," Entrepreneurship Theory and Practice, , vol. 48(5), pages 1191-1222, September.
    16. Yan, Hong-Bin & Li, Ming, 2022. "Consumer demand based recombinant search for idea generation," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    17. Barbara Bartkus & Myron Glassman, 2008. "Do Firms Practice What They Preach? The Relationship Between Mission Statements and Stakeholder Management," Journal of Business Ethics, Springer, vol. 83(2), pages 207-216, December.
    18. Salome Baslandze & Jeremy Greenwood & Ricardo Marto & Sara Moreira, 2023. "The Expansion of Varieties in the New Age of Advertising," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 50, pages 171-210, October.
    19. Nyarko, Samuel Anokye, 2022. "Gender discrimination and lending to women: The moderating effect of an international founder," International Business Review, Elsevier, vol. 31(4).
    20. Salomé Baslandze & Leo Liu & Elvira Sojli & Wing Wah Tham, 2025. "Foundational Processes and Growth," FRB Atlanta Working Paper 2025-01, Federal Reserve Bank of Atlanta.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2104.07476. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.