Do you need a chief technology officer? The effect of appointing a CTO on innovation activities in high-tech new ventures

Technological innovation is critical for high-tech new ventures (HTNVs), and the position of Chief Technology Officer (CTO) has become increasingly crucial in top management teams (TMTs). Drawing upon the upper echelons theory and the attention-based view of the firm, we examined a sample of 429 HTNVs in China between 2014 and 2019 to test whether and how appointing a CTO and the CTO's characteristics affect the new ventures' innovation activities. The results show that having a CTO position promotes HTNVs' exploratory innovation activities but does not affect exploitative innovation activities. While a longer CTO tenure positively affects exploratory innovation, it hinders exploitative innovation. In addition, a CEO serving as the CTO in a HTNV has a negative effect on exploitative innovation activities but no effect on exploratory innovation activities. This effect is contingent on the CEO's technological background and whether the CEO owns shares in the HTNV. The findings of this study enrich the literature on the upper echelons theory, the attention-based view, and entrepreneurship and innovation and provide rare empirical evidence on whether and how appointing a CTO, CTO characteristics, and the interaction of CTO characteristics and CEO characteristics affect HTNVs' innovation activities in emerging markets.