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The managerial latitude of the leaders vis-a-vis the technological innovation: An empirical analysis on the Tunisian market

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  1. A required change
    1. An inventory of current systems
    2. Leading to new accounting philosophy
  2. The many impacts on the accounts
    1. The priority of the new IFRS balance sheet and the front line assets
    2. Liabilities and income statements
  3. Varied consequences
    1. Advantages for some companies...
    2. Necessity to minimize the possible secondary consequences

The objective of this work is to show how managerial leaders could promote the development of technological innovation. For this analysis, the possibility of the success of technological innovation activities depends on the value of disciplinary officer or the specific value of the latter was examined.

In a sample of 41 Tunisian companies, statistical results show that ownership of the leaders in the capital, the conduct and prestige of these leaders present discriminating elements in the onset of technological innovations.

The establishment of an innovation strategy becomes the rule of game forcompanies to survive and grow. Records show that the financial market reacted positively following the announcement of an investment in R & D. In contrast, some suggest that managers develop investment strategies (R & D) which make their replacement cost and increase their power in the firm.

Thus, leaders deplete corporate resources to invest in specific projects to their ability. As a result, they are contributing to the company very high costs of development and control in addition to uncertain returns.

Unlike the theory of innovation sees the phenomenon of an angle opposite to that of the theory of management entrenchment. The activity of R & D underpins the competitiveness of the company and its continued survival. Leaders are central to this core. They support high risk for failure of the activity and exert a positive influence on innovation policy.

Experience of directors is often reinforced by another source namely managerial latitude promoted and supported by the system of corporate governance.

The effectiveness of corporate governance lies in its ability to allow a greater latitude to the leaders to define the boundaries of the firm and trace their organizational architecture to optimize use of resource.

As part of a disciplinary perspective, the mechanisms of corporate governance "traditional" are to secure the profitability of financial investment . In this respect these mechanisms would have the effect of delimiting the opportunism of the leaders and mitigate information asymmetry

However, this vision that privileges the value of discipline at the expense of the specific value of the leader is often challenged. Indeed, the creation of value is no longer limited to discipline officers, but makes use of organizational skills, knowledge and specific skills of leaders.

If managerial discretion is interpreted as an element that enhances the management entrenchment and leads them to assert their own interests over those of shareholders, it can also be a necessary condition for value creation, expanding margins of these maneuvers. This purely strategic vision of the role of leaders is also included in a cognitive perspective of corporate governance. Thus, the objective of governance is two fold. They are able to adapt and learn through innovation.

Investments bearing technological innovation is considered as a source of danger to which leaders have the means and tools that allow them to increase their discretion.

These investments are subject to doubt on two levels. On the one hand, the risk of failure is high due to the characteristics of these and other manipulation on the part of managers, can develop if the recognition of technological activities is measured easily. The human aspect is explanatory at this level.

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