TMT's cognitive frame and breakthrough innovation

• Published in: Management decision Vol. 62; no. 1; pp. 50 - 87
• Main Authors: Yang, Xuecheng, Shao, Yunfei
• Format: Journal Article
• Language: English
• Published: London Emerald Publishing Limited 22-01-2024; Emerald Group Publishing Limited
• Subjects: Behavior; Business models; COVID-19; Disruptive innovation; Literature reviews; Pandemics; Strategic management; System theory; Teams; Technological change; Cognitive frame; Case study; Top management teams (TMTs); Event system theory; Breakthrough innovation
• ISSN: 0025-1747; 1758-6070
• DOI: 10.1108/MD-07-2022-1014

PurposeThis paper aims to reveal how different types of events and top management teams' (TMTs’) cognitive frames affect the generation of breakthrough innovations.Design/methodology/approachDrawing on the event system theory and upper echelon theory, this study chose a Chinese manufacturing enterprise as the case firm and conducted an exploratory single-case study to unpack how breakthrough innovation generates over time.FindingsBy conducting the in-depth case analysis, the study revealed that firms do not produce breakthrough innovation in the catch-up stage and parallel-running stage but achieve it in the leading stage. It also indicated that when facing proactive events in the catch-up stage, TMTs often adopt a contracted lens, being manifested as consistency orientation, less elastic organizational identity and narrower competitive boundaries. In addition, they tend to adopt a contracted lens when facing reactive and proactive events in the parallel-running stage. In the face of reactive and proactive events in the leading stage, they are more inclined to adopt an expanded lens, being manifested as a coexistence orientation, more elastic organizational identity and wider competitive boundaries.Originality/valueFirst, by untangling how TMT's cognitive frame functions in breakthrough innovations, this paper provides a micro-foundation for producing breakthrough innovations and deepens the understanding of upper echelon theory by considering the cognitive dimension of TMTs. Second, by teasing out several typical events experienced by the firm, this paper is the first attempt to reveal how events affect the generation of breakthrough innovation. Third, the work extends the application of the event system theory in technological innovation. It also provides insightful implications for promoting breakthrough innovations by considering the role of proactive and reactive events a firm experiences and TMT's perceptions.