arbiter
JournalsAccount

TMT task-related faultlines and firm innovation: Differential impacts on incremental and radical innovation

Yusen Dong et al.

Human Relations2026https://doi.org/10.1177/00187267261420764article
FT50AJG 4ABDC A*
Weight
0.50

Abstract

Why do some firms drive radical innovation, while others only deliver incremental innovation? We argue that the answer may lie in the latent divisions within top management teams (TMTs). Drawing on the categorization–elaboration model, we propose that TMT task-related faultlines create a paradoxical effect: while they enhance incremental innovation by promoting within-subgroup cohesion, they simultaneously hinder radical innovation by stimulating between-subgroup fragmentation. Using a sample of Chinese listed manufacturing firms, we conduct empirical analysis which reveals that the strength of TMT task-related faultlines is positively associated with firms’ incremental innovation but negatively associated with radical innovation. Further analysis demonstrates that CEO functional diversity attenuates the negative relationship between TMT task-related faultlines and radical innovation. TMT ownership share weakens both the positive link between TMT task-related faultlines and incremental innovation and the negative link between TMT task-related faultlines and radical innovation. This research advances scholarly understanding of TMT composition, particularly TMT task-related faultlines and their dual effects on innovation typologies, contributing to the literature at the intersection of TMT composition and firm innovation, and offering actionable guidance for firms when making strategic choices about whether to prioritize incremental innovation or pursue radical innovation.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1177/00187267261420764

Or copy a formatted citation

@article{yusen2026,
  title        = {{TMT task-related faultlines and firm innovation: Differential impacts on incremental and radical innovation}},
  author       = {Yusen Dong et al.},
  journal      = {Human Relations},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1177/00187267261420764},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

TMT task-related faultlines and firm innovation: Differential impacts on incremental and radical innovation

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.