Innovation intensity of military-connected firms

• Main Authors: Iman Harymawan, -, Fajar Kristanto Gautama Putra, -, Amalia Rizki, -, Mohammad Nasih, -
• Format: Article PeerReviewed
• Language: English; Indonesian; English; Indonesian; English; Indonesian
• Published: Emerald 2021
• Subjects: H Social Sciences; HF Commerce
• Online Access: https://repository.unair.ac.id/113402/1/Iman%20Harymawan_Artikel110_Innovation%20intensity.pdf; https://repository.unair.ac.id/113402/2/Iman%20Harymawan_Peer%20Review110.pdf; https://repository.unair.ac.id/113402/3/Iman%20H_Similarity110_Innovation%20intensity.pdf; https://repository.unair.ac.id/113402/6/Iman%20H_Korespondensi110%20Innovation-Intensity.pdf; https://repository.unair.ac.id/113402/8/MohNasih_Similarity109_Innovation-intensity-of.pdf; https://repository.unair.ac.id/113402/9/MohNasih_KualitasKaril109.pdf; https://repository.unair.ac.id/113402/; https://www.abacademies.org/journals/academy-of-accounting-and-financial-studies-journal-inpress.html; https://doi.org/10.1108/IJMF-12-2020-0616
• Institution: Universitas Airlangga

Purpose The study aims to examine the military-connected firms' risk preference, specifically in the innovation intensity level context. The authors argue that firms with military-experienced top management have conservative and risk-averse behavior, influencing the innovation investment policy. Design/methodology/approach The authors use nonfinancial Indonesian-listed firms from 2010 to 2018 amounted to 2,504 firm-year observations. Findings The authors document a negative relationship between military connection with both innovation activities and outputs. The additional analysis documents that risk-preferences of military-connected firms will be drastically changed when the industry has a high digital level, which confirms that risk-averse military-experienced management is less dominant with adaptation skill. The authors also identify that veterans did not need a long tenure to influence firms' innovation investment policy. Lastly, the result is robust due to various endogeneity tests employed. Originality/value This study further examines military-connected firms' technological innovation compared to prior studies and enriches the related literature.