Yadav
There’s good news for stockholders: researchers have determined a new way to foretell a company’s future innovations. The key is in what the CEO has to say.
Counting the number of future oriented sentences in annual reports is an accurate predictor of future innovation by that firm, according to the paper “Managing the Future: CEO Attention and Innovation Outcomes,” which will be published in The Journal of Marketing.
Manjit Yadav, associate professor of marketing at Texas A&M University’s Mays Business School co-authored the study with Rajesh Chandy, professor of marketing at the University of Minnesota’s Carlson School of Management, and Jaideep Prabhu of Imperial College, London University.
The research shows that CEOs who speak to future events and external activities lead their firms to earlier adoption and invention of new technologies and greater and faster development of innovations.
More on this story can be found in Science Daily at http://www.sciencedaily.com/releases/2007/08/070814150611.htm.
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