What is it about?
The research examined 215 FTSE 350 companies over an 11-year period between 2010 and 2021. It explored how CEO tenure and independent directors influence a company’s “R&D knowledge stock”, which is the research, expertise and technological capability built through investment in innovation. It further examines how the influence of long tenured CEO and independent directors on R&D knowledge stock when firm performance falls below aspiration levels.
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Why is it important?
This study reconciles competing governance theories with performance feedback theory, thereby contributing to multiple literatures and enrich understanding of the micro-foundations of firms' R&D decisions. The study thus offers a valuable expansion to corporate governance literature. Policymakers might consider offering incentives, such as R&D tax credits, to support the innovation advocacy of independent directors and bolster innovation in firms with long-tenured CEOs.
Perspectives
Long-serving CEOs can bring valuable experience and stability, but there is also a risk that leaders become too cautious or too attached to existing ways of thinking. Our findings show that independent directors play an important role in encouraging companies to continue investing in innovation, especially during difficult periods when firms may otherwise retreat from long-term research and development. This matters beyond individual companies. Innovation drives productivity, competitiveness and economic growth. The study highlights how governance structures can influence whether firms continue building the knowledge and technologies that shape future industries.
Dr. Igbekele Sunday Osinubi
University of East London
Read the Original
This page is a summary of: Long CEO tenure, independent directors and R&D knowledge stock: the moderating effect of performance shortfalls, Corporate Governance The International Journal of Business in Society, April 2026, Emerald,
DOI: 10.1108/cg-03-2025-0173.
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