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Drawing on the upper echelons theory, this study focuses on how top management team (TMT) heterogeneity affects breakthrough innovations and examines how strategic decision-making logic (including causation and effectuation) moderates the relationship between TMT heterogeneity and breakthrough innovation.

By conducting an empirical test of 227 sample firms in China, the authors applied linear hierarchical regression analysis to test the hypotheses on the TMT heterogeneityinnovation relationship and the moderating roles of causation and effectuation.

The empirical tests show that TMT heterogeneity positively affects breakthrough innovation, and both causation and effectuation positively moderate the positive relationship between TMT heterogeneity and breakthrough innovation. In addition, effectuation has a stronger moderating effect on the positive correlation between TMT heterogeneity and breakthrough innovation than causation.

This study extends the upper echelons theory to explain how the characteristics of TMTs affect firm innovation. Specifically, the authors explore the TMT heterogeneity–breakthrough innovation relationship from the perspectives of information processing and core competence and reveal the boundary condition of strategic decision-making logic in the correlation between TMT heterogeneity and breakthrough innovation. In this vein, the authors contribute to the literature by untangling the internal mechanisms between TMT heterogeneity and breakthrough innovation and extending the discussion on effectuation theory from the entrepreneurship domain to the innovation field. Furthermore, the research findings can provide helpful implications for TMTs to manage breakthrough innovation effectively.

This study aims to explore stigma in payday borrowing by investigating how the stigma associated with using such a service may spill over and affect other people, entities and relationships beyond the user within a service ecosystem.

In-depth interviews exploring consumers’ lived experiences and stigma were combined with publicly available reports from key stakeholders within the payday loan (PDL) industry to create a qualitative, text-based data set. The transcripts and reports were then analysed following thematic protocols.

Analysis reveals that the stigma associated with using a stigmatised service spills over, affecting not only the borrower but other actors within the service ecosystem. The analysis uncovers three important interactions that spilled over between the actors within the stigmatised service ecosystem (SSE), which can be damaging, enabling or concealed.

This study introduces and explores the concept of “SSEs” and investigates the impact of stigma beyond the dyadic relationships between service providers and users to consider the actors within the wider ecosystem. The findings reframe existing understandings about stigma, as this study finds that stigmatised services can play both a positive (enabling) and a negative (damaging) role within an ecosystem, and this study uncovers the role of stigma concealments and how they can affect relationships and value co-creation among different actors.

This study provides evidence for more robust policies for addressing stigma in different SSEs by mapping the effects of stigma spillover and its effects on the borrower and other actors.

This study contributes to reframing marketing priorities by extending existing work on consumer stigma by showing how the stigma of a PDL may spill over and affect other actors within a service ecosystem. Significantly, the interactions between the actors may have positive as well as negative outcomes.