Integrated risk management and product innovation in China: The moderating role of board of directors

Jie Wu, Zefu Wu*

*Corresponding author for this work

Research output: Contribution to journalArticle

24 Citations (Scopus)

Abstract

This study explored the role of the board of directors in the relationship between integrated risk management and product innovation. We focused on a board's direct involvement in risk oversight and its use of external audit in risk oversight, and examined their moderating effects on the relationship between integrated risk management and product innovation. Panel data from a survey of 1178 Chinese firms was analyzed to test the hypotheses. A board's direct involvement in risk oversight was found to negatively moderate the positive relationship between integrated risk management and product innovation success. The use of external audit in risk oversight similarly weakens the relationship. These results show how an effective board contributes to the innovation benefits associated with risk management in product innovation. They also have important implications for emerging economy firms pursuing an integrated approach to risk management in product innovation.

Original languageEnglish
Pages (from-to)466-476
Number of pages11
JournalTechnovation
Volume34
Issue number8
Early online date13 Dec 2013
DOIs
Publication statusPublished - 31 Aug 2014

Keywords

  • Board of directors
  • China
  • Emerging economies
  • External audit
  • Integrated risk management
  • Product innovation
  • Risk oversight

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