CEO-board directional age difference and R&D of firms: Examining the moderation effects of strategic orientation

Abstract

This study explores the influence of CEO-board age differences on a firm's R&D intensity through the lens of the Knowledge-Based View, considering how strategic orientations such as digital, entrepreneurial, and long-term focus moderate this relationship. Drawing on the KBV, the research posits that age diversity between CEOs and board members enhances the firm's knowledge base by combining diverse experiences, insights, and cognitive styles, thereby fostering innovation. Using data from 309 Indian firms listed on the NSE 500 index between 2007 and 2016, the findings demonstrate that a digital orientation strengthens the positive impact of CEO-board age differences on R&D intensity by facilitating knowledge creation and sharing. Conversely, an entrepreneurial orientation may weaken this relationship by focusing more on immediate market opportunities than on sustained knowledge development. A long-term orientation further amplifies the positive linkage by aligning diverse leadership knowledge with sustained innovation objectives. This study contributes to the strategic management literature by clarifying how leadership demographic diversity, viewed through a knowledge-based perspective, influences a firm's ability to generate and leverage knowledge for innovation, thereby optimizing R&D outcomes.