Monitoring the monitor: Enabling strategic change when the former CEO stays on the board

Firms often retain their former CEOs on the board after succession to benefit from the former CEOs’ firm-specific expertise. However, their presence can inhibit successor CEOs from implementing meaningful strategic change, as the former CEOs seek to preserve their personal legacy and may see the strategic landscape differently, especially when the successor CEO is hired from outside the firm. Using a strategic leadership interface perspective, we propose that board members can alleviate this potential tension and enable strategic change. To test our theory, we focus on a subsample of succession events: when the former CEO stays on board as chair and the successor CEO is an outsider. This scenario is likely to result in strategic tension and cognitive differences between these two organizational leaders. We find that in such situations, boards with a higher proportion of outside directors experience greater post-succession strategic change; we find no effect in other succession scenarios. We isolate legacy conservation as a motivating factor by showing that the effect manifests for divestitures but not for acquisitions.     

What is strategic leadership? Developing a framework for future research

We attempt to bring clarity to the concept of strategic leadership and guide its development by reviewing and synthesizing the existing management literature on how top managers and board directors influence organizations. We propose a new definition of strategic leadership and offer a framework organized around the essential questions of what strategic leadership is, what strategic leaders do, why they do it, and how they do it. To answer these questions, we organize our review around the eight functions strategic leaders serve, the key attributes of strategic leaders, the theories scholars have used to relate these functions and attributes to outcomes, contextual factors, and the organizational outcomes that strategic leaders affect. We identify how strategic leadership research is concentrated in five streams that rarely interact with each other, and offer suggestions for connecting these streams. Our review provides a big picture of what is known about individuals at the top levels of organizations and highlights the key areas where future investigation is essential.     

Extending the boundaries of strategic leadership research

This special issue was developed to extend the boundaries of strategic leadership research, to help bridge the micro-macro divide regarding theories of strategic leadership, and to bring together theories that have emerged independently. In this introductory editorial, we provide an overview of the research on strategic leadership and emphasize the need for further integration of research from the organizational behavior, industrial and organizational psychology, organizational economics, behavioral strategy, and strategic management fields. We then introduce and summarize the eleven articles we accepted for this special issue by classifying them into two broad themes: (a) Chief executive officer (CEO) characteristics and (b) the dynamics of interactions among the CEO, the top management team, and the board. Finally, we propose recent theoretical and empirical foci for advancing strategic leadership research and offer a research agenda for future research highlighting several important research questions related to extending the dialogue among scholars across the different leadership and strategy domains.     

Traversing the storm: An interdisciplinary review of crisis leadership

An organizational crisis is a low-probability, high-impact event that threatens the survival of organizations and individuals, often with little warning. In response, people seek clarity, reassurance, and hope from organizational leaders. Yet, crises also vary in nature and impact (e.g., a product failure versus the COVID-19 pandemic), which presents diverse challenges to leaders and differing stakeholder perceptions. Based on a critical analysis of 69 empirical articles, we provide a comprehensive, systematic, interdisciplinary review of the crisis leadership literature. Our review utilizes the Coombs and Holladay (1996) crisis typology, where crises are categorized according to mutually exclusive attributional dimensions (i.e., internal–external and intentional–unintentional). We conduct a thematic analysis of crisis leadership within and across these four crisis categories and find that each is associated with a different leadership theme. We also examine the methodological quality and rigor of the qualitative and quantitative articles in our review. Based on our findings, we also offer suggestions to guide future crisis leadership research, and provide guidance for organizational leaders in how to respond to various crises.     

董事会特征与总经理变更

本文以在上海证券交易所1999年前上市的公司为样本,研究董事会特征等治理变量对总经理变更的影响。研究结果表明,对相对业绩下降公司的总经理变更能起到显著解释作用的变量只有董事会会议的次数和公司的领导结构。而其它治理变量,诸如董事会规模、管理董事比例、独立董事比例、股权集中度、董事会成员持股比例等,未能对总经理变更起到显著的解释作用。     

动态环境下变革型领导行为对探索式技术创新和组织绩效的影响

现有针对变革型领导行为的研究多数是从中基层领导者所影响的个体或团队层次展开的,从高层领导者及其所处的组织层次来进行探讨的研究成果相对较少.目前数量有限的关于变革型领导行为与组织绩效之间关系的研究,普遍忽略了对中介机制和调节影响因素的深入探讨.基于对现存研究缺口的认识,本文构建了包含中介环节的调节效应概念模型,并通过中国297家企业样本的实证检验,得出了以下结论:企业高层领导者的变革型领导行为对组织绩效具有正向的影响,且探索式技术创新在其中承担部分中介的作用;环境动态性对变革型领导行为与组织绩效之间的关系具有调节作用,但在这种调节作用产生效应过程中,探索式技术创新起了完全中介的作用.本研究证明了中介调节效应模型能更好解释变革型领导行为对组织绩效作用的机理,同时也对拓展现属于组织行为学领域的领导理论的研究范围和角度提出了建议.     

Bringing the cognitive revolution forward: What can team cognition contribute to our understanding of leadership?

Cognition is a central element of organizational behavior and leaders are seen as key shapers of organizational cognition. Leaders’ influence over organizations often occurs through their influence on the collectives or teams they are leading. Hence, leaders influence organizational outcomes by modeling team cognition. Despite the importance of this relationship for organizational outcomes, there is little integration currently between the leadership and team cognition literatures. To address this gap, we conduct an integrative review. First, we develop a model for leader and team influence based on organizational emergence and leadership complexity theories. Our model makes a distinction between the source of influence over cognition (leader → team, team → leader, reciprocal) and form of cognition emergence (variance reduction, variance enhancement); constraints that shape cognitions that vary in levels (within and between-level, contextual) and focus (individual, interindividual, collective); and leader behaviors (administrative, adaptive, enabling). We apply this model to review and analyze ninety-nine studies in the current literature and then discuss the limitations and future directions drawing on our findings and theoretical model. We contribute a unifying framework of leadership and team emergence that can be expanded and applied to other settings.     

When do leaders matter? Ownership,governance and the influence of CEOs on firm performance

Leadership and strategic management research suggests that the extent to which CEOs influence performance largely depends on the presence or absence of certain factors. These factors may include the characteristics of the task at hand, subordinates, the organization itself or the external environment. Among these factors, a fundamental contingency that has received little empirical attention is an organization's ownership and governance structure—that is, who owns and monitors the organization. In this paper, we outline how different ownership and governance structures can present the opportunity for, or limit, leader influence and empirically examine the extent to which CEO effects on financial performance depend on these structures. Examining organizations in the same industry but with different ownership and governance structures, our results suggest that these structures are closely aligned with the degree to which CEOs influence firm performance. Our findings support the notion that leaders matter most when ownership and governance structures correspond with a weak or ambiguous institutional logic. This study contributes new insight into the “opportunity structure” of CEO influence, that is, the organizational factors that shape leader discretion and, hence, condition the CEO's level of influence over firm performance.     

Power and Pay: The Politics of CEO Compensation

This paper examines CEO compensation, with an emphasis on the power of CEOs to influence their own compensation by managing the compensation process. It analyzes the CEO's power over the board of directors and the political tactics used by the CEO to manage the board and its compensation decisions. An empirical examination of CEO compensation in 203 large American manufacturing firms in 1985 illustrates the effect of CEO power on compensation and the flexibility available to the CEO in establishing the legitimacy of compensation. The implications of this perspective for management control of corporations and for CEO compensation research are considered.     

Power and trust in board–CEO relationships

In this paper we develop and test a theoretical model that reduces relational risks to solve the puzzle of conflicting task requirements imposed on boards of directors in listed companies. Doing so unites two seemingly conflicting tasks—board control and service tasks—through examining relational risks between the board and the CEO. We also present two mechanisms that could reduce relational risks. One is board power over the CEO, and the other board trust in the CEO. Practitioners could apply these two mechanisms to achieve better performance of board control and service tasks simultaneously. We test hypotheses using 441 survey responses collected in 2005. The result shows a good fit between the model and survey data, indicating examining relational risks is a rewarding approach to understanding conflicting board task performance, and board control over the CEO and board trust in the CEO are two effective mechanisms to reduce relational risks.     

A meta-analysis of humble leadership: Reviewing individual,team, and organizational outcomes of leader humility

Humility is a concept grounded in a self-view that something greater than oneself exists. A multitude of disciplines to date have sought to understand how humility impacts leaders, as well as the individuals, teams, and organizations they lead. Despite overlapping research questions, methodologies, and empirical contexts, studies examining leader humility have developed largely in isolation with little overlap between fields. This has created a fundamental divide between micro and macro researchers who suggest that humility is conceptualized as both a mutable behavioral state and a stable leader trait, respectively. We provide a systematic review of research on leader humility at multiple organizational levels of analysis to provide linkages across disciplinary and theoretical divides. We couple our systematic review with a meta-analysis of 212 unique studies, identifying 99 estimates for the relationships between leader humility and numerous individual, team, and organizational variables. Among all variables, we find humble leadership most strongly predicts followers’ satisfaction with the leader and the leaders’ participative decision making. We also find humble leadership does not affect their own job performance or the performance of organizations, but improves the performance of their followers and teams. Building on our results, we call for research across academic disciplines.     

Unternehmenserfolg, Wechsel im Vorstandsvorsitz und Disziplinierung von Finanzvorständen

The Chief Financial Officer (CFO) is often referred to as a company’s No. 2 on contemporary management boards; yet corresponding empirical evidence is scarce. As a result, academic literature has not yet investigated whether CFOs—like CEOs—are dismissed more frequently if corporate performance is poor and to what extent forced Chief Executive Officer (CEO) turnover also influences disciplinary action towards CFOs. Therefore, in this paper we examine the antecedents of forced CFO departures in the largest German corporations between 1999 and 2006. Building on principal-agent theory, we expect respective relationships between the board of directors, the CEO, and the CFO. Moreover, we propose that principals also take team-specific and firm-specific human capital into consideration when disciplining agents. We find that poor corporate performance and forced CEO turnover both independently increase the likelihood of CFO dismissal. In addition, we find indications for a close team relationship between CFOs and CEOs. In summary, our results support the prominent role of CFOs alongside CEOs on contemporary management boards and suggest a more detailed consideration of CFOs in future research on performance consequences of managerial successions.     

Strategic leadership for exploration and exploitation: The moderating role of environmental dynamism

This study advances prior theoretical research by linking transformational and transactional behaviors of strategic leaders to two critical outputs of organizational learning: exploratory and exploitative innovation. Findings indicate that transformational leadership behaviors contribute significantly to adopting generative thinking and pursuing exploratory innovation. Transactional leadership behaviors, on the other hand, facilitate improving and extending existing knowledge and are associated with exploitative innovation. In addition, we argue that environmental dynamism needs to be taken into account to fully understand the effectiveness of strategic leaders. Our study provides new insights that misfits rather than fits between leadership behaviors and innovative outcomes matter in dynamic environments. Hence, we contribute to the debate on the role of strategic leaders in managing exploration and exploitation, not only by examining how specific leadership behaviors impact innovative outcomes, but also by revealing how the impact of leadership is contingent upon dynamic environmental conditions.     

The role of CEO emotional stability and team heterogeneity in shaping the top management team affective tone and firm performance relationship

In this paper, we aim to bridge the micro-macro divide by addressing continued calls from strategic leadership and affect researchers to examine the black box to consider how CEO characteristics relate to top management team (TMT) affective experiences, and, in turn firm outcomes. We further consider the role of one key contextual factor in this relationship: TMT heterogeneity. We predict that CEO personality, specifically, emotional stability, is positively associated with TMT affective tone. Moreover, we posit that the relationship between TMT affective tone and firm performance depends on TMT task-related heterogeneity, such that positive affective tone benefits firm performance in heterogeneous TMTs, whereas negative affective tone benefits firm performance in homogeneous TMTs. Using a novel methodology that measures key psychological aspects of the CEO and TMT, we examined 50 TMTs from publicly-traded companies to test our predictions. Our findings offer theoretical contributions to the strategic leadership, affect and diversity literatures as well as managerial applications for CEO selection and management and managing diversity in upper echelons.     

Crisis leadership: A review and future research agenda

The past few decades have witnessed numerous crises that have drawn increasing attention to the study of crisis leadership. However, research in this field remains fragmented and existing reviews often adopt a subjective approach to identify and synthesize the findings of relevant articles. These limitations make it difficult for scholars to appreciate the progress made in the literature, to derive comprehensive and objective insights, and to forge a path ahead. This study synthesizes theoretical insights and empirical findings in the crisis leadership literature using bibliometric techniques. We first review the intellectual structure of the crisis leadership literature by conducting co-citation and bibliographic coupling analyses. We then map the major conceptual themes in the crisis leadership literature via a co-word analysis. To supplement the findings of the bibliometric analyses, we review the key methodological approaches adopted by crisis leadership researchers. Based on the integrative insights, we propose a research agenda highlighting opportunities for theoretical and methodological advancements in crisis leadership research.     

家长式领导对高管团队有效性的影响机制研究:以团队凝聚力为中介变量

本文通过对108家中国企业的高管团队问卷调查所获得的数据的分析,探讨了CEO的家长式领导对高管团队有效性的影响机制,结果表明:仁慈领导和德行领导对团队有效性有显著的积极影响,威权领导对团队有效性有显著的消极影响;团队凝聚力起到了部分中介的作用,威权领导通过降低团队凝聚力对团队有效性产生负面影响.     

The board advisory tasks in small firms and the event of crises

In this article we examine what affects the board of directors’ involvement in the advice to management, with emphasis on the influence of crises on the board advisory tasks performance. Based on a survey of 881 small Norwegian firms, we analyse responses from CEOs in order to determine whether and to what extent the board is actively involved in the governance process during crises through providing advice. The study has two major contributions to board research in general and research of into small firms in particular. The first is the go beyond the “usual suspects” of board size, CEO duality, and board independence when looking for determinants of board involvement in advice. The second contribution is a clearer understanding of board involvement during crises. Our results show that board member diversity becomes particularly important during crises, since this provides the CEO and firm access to a more diverse pool of competences and experiences. We also find that crises moderate the effects of incentive on the board’s involvement in advice. This evidence sheds new light on the determinants of directors’ involvement in board tasks, suggesting that directors’ incentive to perform certain board tasks vary according to the contingent situation the firm is experiencing.     

Board members’ contribution to strategic decision-making in small firms

This article explores how the boards of small firms actually undertake to perform strategic tasks. Board strategic involvement has seldom been investigated in the context of small firms. We seek to make a contribution by investigating antecedents of board strategic involvement. The antecedents are “board working style” and “board quality attributes”, which go beyond the board composition features of board size, CEO duality, the ratio of non-executive to executive directors and ownership. Hypotheses were tested on a sample of 497 Norwegian firms (from 5 to 30 employees). Our results show that board working style and board quality attributes rather than board composition features enhance board strategic involvement. Moreover, board quality attributes outperform board working style in fostering board strategic involvement.     

Multi‐Leader Teams in Review: A Contingent‐Configuration Perspective of Effectiveness

Multi‐leader teams are characterized by multiple leaders exhibiting mutual influence on each other while working towards a common team goal. An unexplored assumption in this literature is that increasing the number of leaders is related to heightened team effectiveness. The authors propose that this notion is oversimplified and suggest a contingency model of multi‐leader team effectiveness. The authors suggest that the context determines the effectiveness of a particular multi‐leader team configuration, because each formation has unique internal team mechanisms. To investigate this perspective, we review the multi‐leader team literature (175 articles) by categorizing the extant theory and research as falling within nine multi‐leader configurations along two key dimensions: (1) the proportion of leaders within a team; and (2) the dispersion of leadership through role co‐enactment of team leaders. This framework enables a more coherent understanding as to the benefits and the costs of each specific multi‐leader team configuration and a clearer evaluation of the contexts in which varying configurations are most effective. Four emerging themes related to configuration–contextualization are explained and theoretical implications for interpreting leadership effectiveness in multi‐leader team settings are discussed.     

Board age and corporate financial fraud: An interactionist view

Unlike past studies which have focused on either executives or boards of directors, this study takes an interactionist view to investigate the determinants of corporate financial fraud. We propose that CEOs evaluate the opportunities for financial fraud according to both situational stimuli and their own personal characteristics. As older directors are often more experienced and have more to lose if they fail in their monitoring duties, we expect them to be more capable and to have stronger motivation for monitoring CEOs closely. As such, we propose that a CEO is less likely to engage in corporate financial fraud when the average age of the board of directors increases (i.e., board age). However, when the CEO is older than the board, the CEO may attach less importance to board age when deciding whether to commit fraud. Therefore, we further propose that the CEO–board directional age difference can weaken the effect of board age. Our empirical analyses provide strong support for these hypotheses. Our study contributes to the literature on corporate governance by highlighting the often neglected roles of board age and CEO–board directional age difference in deterring corporate financial fraud.