Benefiting from CEO's empowerment of TMTs: Does CEO–TMT dissimilarity matter?

This study examines empowering leadership from an upper echelons perspective by focusing on top management teams (TMTs) and considering the demographic dissimilarities between the CEO and other TMT members. Data from a multisource survey of 129 Chinese firms demonstrate the importance of the fit between the backgrounds of the leader and the TMT members. Although empowerment of TMTs by CEOs predicts superior organizational performance in general, the findings show that this practice is most beneficial when the CEO and the TMT members differ in their informational demographics but have a longer tenure overlap. If either dissimilarity in informational demographics or tenure overlap is lacking, the CEO's empowerment of the TMT has a less positive effect on firm performance. Essentially, a three-way interaction is demonstrated. Introducing boundary conditions for the empowerment of TMTs by CEOs and testing their interactive influence broadens our understanding of how CEO leadership style can affect organizational performance, and refines the guidance for practitioners on TMT management.     

Empowering leadership and managers' career perceptions: Examining effects at both the individual and the team level

In a multilevel model of leadership behavior, we investigated whether and how empowering leadership affects individuals' career perceptions. We developed a conceptual model that links empowering leadership at the individual level and at the group level (mean as well as dispersion) to individuals' career self-efficacy and career satisfaction. To test our model, we used questionnaire data from a multilevel data set of 2493 employees in leadership positions nested in 704 teams from a large German corporation. Hierarchical linear regression analyses showed that empowering leadership at the individual level was positively related to career self-efficacy, which in turn mediated the relationship between empowering leadership and career satisfaction. Empowering leadership at the group level was positively related to career self-efficacy when it was conceptualized as leadership differentiation (i.e., the standard deviation of empowering leadership ratings), but not when it was conceptualized as leadership climate (i.e., mean empowering leadership ratings). Career self-efficacy in turn mediated the relationship between empowering leadership differentiation and career satisfaction. Finally, we found a negative relationship between empowering leadership differentiation and career satisfaction.     

CEO proactiveness,innovation, and firm performance

Chief Executive Officers (CEOs) are essential in driving firm innovation. However, despite existing research on CEO personality characteristics and firm innovation and performance, we know relatively little about how personality characteristics reflecting anticipatory action and strong outcome-oriented components, such as proactiveness, shape firm innovation and performance. We explore the relationship between CEO proactiveness and three facets of organizational innovation, as well as its impact on firm performance. We suggest that CEO proactiveness is manifested in different network-building, problem-solving, and feedback-seeking behaviors with different implications for exploratory innovation, exploitative innovation, and organizational ambidexterity, and that its effect on firm performance is partially mediated by organizational ambidexterity. By examining the influence of this important CEO personality characteristic on key firm strategic choices and performance, we extend research on strategic leadership and firm innovation and performance.     

Effects of intellectual capital and university knowledge in indigenous innovation: evidence from Indian SMEs

Abstract

Intellectual capital and collaboration with universities are vital knowledge management practices for small- and medium-sized enterprises (SMEs) to innovate and improve the effectiveness of their operations. This study investigates empirically the impacts of intellectual capital and university knowledge on indigenous innovation and how business and institutional environments affect the relationships. The research model is tested using moderated regression analysis and data collected from 150 SMEs in India. The results show that intellectual capital and university knowledge improve indigenous innovation, both individually and interactively. The effect of intellectual capital in indigenous innovation is amplified by dysfunctional competition whereas the effect of university knowledge in indigenous innovation is attenuated by environmental uncertainty. In addition, we find that indigenous innovation is positively associated with business performance. The impact of indigenous innovation on business performance is enhanced by dysfunctional competition but reduced by environmental uncertainty.     

A juggling act: CEO polychronicity and firm innovation

This study examines a unique CEO temporal characteristic—polychronicity (the extent to which CEOs prefer to engage in multiple projects simultaneously and believe that this is the best way of doing things). I propose that CEO polychronicity is a double-edged sword for firm innovation and that this relationship is contingent on the environmental and organizational contexts. Specifically, CEO polychronicity is positively related to firm innovation when firms operate in more dynamic environments, are relatively large and have poor past performance, but is negatively related to firm innovation when firms operate in less dynamic environments, are relatively small and have good past performance. Results based on survey data from 111 Chinese small and medium-sized enterprises (SMEs) largely support my hypotheses. This study makes contributions by being an initial attempt to examine CEO polychronicity and by identifying essential boundary conditions of the effect of CEO polychronicity on firm innovation.     

A mixed-methods study of CEO transformational leadership and firm performance

This mixed-methods study explores the relationship between CEO transformational leadership and firm performance relying exclusively on secondary data. We used a random sample comprising of 42 CEOs of publicly-listed US and European companies. We evaluated their transformational leadership drawing upon media sources which were content analyzed to create individual CEO profiles. These profiles were then given to a panel of three judges who rated the CEOs on their transformational leadership style. We obtained the firm performance data from Thomson Datastream. Our results showed significant associations between intellectual stimulation and inspirational motivation respectively, and different financial performance indicators. We also observed a tendency of positive relationships between individualized consideration and firm performance. These findings remained significant after controlling for company baseline performance, firm size, CEO tenure, and company location. Our findings largely support the positive role of CEO transformational leadership in shaping firm performance.     

Strategic Influences of Technological Innovation in Greece

This exploratory paper analyses the ‘importance’ and ‘awareness’ of a set of established ‘strategic’ influences of technological innovation in the context of a European newly‐industrialized country. The author interviewed 105 Greek manufacturing firms (mainly SMEs) and measured their perceived innovation rate as well as 17 ‘strategic’ factors regarding top‐management practices and characteristics. Using correlation and regression analysis the initial group of factors was reduced to a subset of five ‘major importance’ influences of innovation, namely: incorporation of technology plans in the business strategy, managerial attitude towards risk, perceived intensity of competition and rate of change of customer needs, and finally status of the CEO (owner‐CEOs were associated with higher innovation rate than appointed CEOs). The ‘statistical’ results are exploratory and have to be treated with caution, as they are highly dependent on the accuracy of the respondents' perception of their company's innovation rate and top‐management practices and characteristics. The ‘statistical’ results were then compared with the managers' perception on the important factors determining innovation (also measured during the interviews). Overall the perceptual analysis confirmed the significance of the statistically important variables, with the exception of a disagreement in the direction of association between the status of the CEO and the rate of innovation. In general, top‐management characteristics proved more important ‘strategic’ influences of innovation for the Greek SMEs than corporate practices. The study also indicated that the important influences of innovation were generally scarce in the Greek institutional context. The highly innovative companies were the ones to overcome country‐specific innovation barriers such as the low supply of technology, the low level of competition and the risk‐averse national culture.     

Empowering leadership and contextual ambidexterity – The mediating role of committed leadership for continuous improvement

Organisations nowadays try to be ambidextrous, that is, to balance exploitation and exploration, at the level of the organisational unit, or even at the individual level. Recent studies found that important drivers for contextual ambidexterity are a high level of empowerment and an orientation towards continuous improvement (CI) and innovation. It is, therefore, to be expected that empowering leadership and leader commitment to CI are associated with contextual ambidexterity. However, literature about the relationships between empowering leadership, committed leadership for CI and contextual ambidexterity is scant. Based on two separate survey studies, we validated both the relationship between empowering leadership and contextual ambidexterity, and the mediating effect of committed leadership for CI in the organisational unit level and the individual level. The managerial implications of this research is that organisations that want to facilitate contextual ambidexterity should not only empower employees so that they can decide more independently on how to organise their time and make choices when they conduct exploratory activities and when they perform exploitative activities. Management must also act as committed ambassadors for CI, as CI functions as an integration mechanism to create both alignment and adaptability, and hence contextual ambidexterity.     

Leadership in small-scale societies: Some implications for theory,research, and practice

Leadership studies concentrate on large-scale societies and organizations with formal hierarchies, large power differences, and diverse membership. Much less is known about leadership in small-scale, homogeneous, and relatively egalitarian societies in which humans have spent most of their existence. We summarize the anthropological literature on leadership from traditional, small-scale societies in terms of (1) the functions and roles of leaders; (2) the traits and behaviors conducive to leader emergence and effectiveness; and (3) the motivations and incentives to assume leadership positions. We address how studies of leadership in small-scale societies inform theory development. By viewing leadership and followership in light of our evolutionary history in small-scale societies, we shed new light on outstanding questions in leadership research and on challenges for leadership practice.     

The missing link? Investigating organizational identity strength and transformational leadership climate as mechanisms that connect CEO charisma with firm performance

In this paper, we suggest that CEO charisma is related to firm performance via its effect on two important mediators. First, charismatic CEOs are expected to raise the transformational leadership climate within an organization. Second, both CEO charisma and transformational leadership climate are proposed to increase a firm’s organizational identity strength (OIDS), which in turn, relates positively to firm performance. We tested these propositions on a sample of 150 German companies (20,639 employees) with a three-path mediation model at the organizational level of analysis, utilizing four independent data sources. Our study helps open the black box of organizational leadership and organizational performance by demonstrating top-level leadership’s (CEO charisma) cascading effect on the TFL climate throughout the organization and by showing that OIDS mediates both leadership levels’ relationships with firm performance. Further, our study is the first to investigate the relationship between OIDS and performance at the organizational level of analysis.     

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.     

CEO transformational leadership and organizational outcomes: The mediating role of human–capital-enhancing human resource management

Using a field survey and company data of 170 firms in Singapore, we tested an integrated theoretical model relating CEO transformational leadership (TL), human–capital-enhancing human resource management (HRM), and organizational outcomes, including subjective assessment of organizational performance, absenteeism, and average sales. We found that human–capital-enhancing HRM fully mediates the relationship between CEO transformational leadership and subjective assessment of organizational outcomes and partially mediates the relationship between CEO transformational leadership and absenteeism. We discuss practical and theoretical implications.     

Organizational structure and success of international joint ventures in emerging economies: the case of Spanish–Moroccan SMEs

One of the most common ways in which SMEs internationalize their business is through the creation of joint ventures; nevertheless, many of these fail. To avoid this risk, it is important to identify the factors that favour the continuity of such enterprises. The aim of this paper is to analyse the factors related to organizational structure that determine the success of international joint ventures between SMEs in emerging economies, taking as the particular area of study the question of joint ventures between Spanish and Moroccan firms, located in Morocco. The research hypotheses were tested using a linear regression model applied to a sample of 210 international joint ventures. The results obtained from a structured survey show that, with respect to the success of the partnership, significant factors include the existence of majority ownership by the foreign partner, management by a local CEO and the effort made by each party to adapt to the management style of the other. This research contributes to the knowledge of the main factors related to the organizational structure of joint ventures that influence the level of success achieved. The value provided by this research lies in the breadth of the sample examined, in its focus on a very common type of partnership between SMEs, on which very little has been previously studied, and in the fact that the results obtained are extensible to other realities, such as partnerships between European companies and those from countries with similar characteristics (located in Africa or in countries where an Arab culture prevails).     

Do transformational CEOs always make the difference? The role of TMT feedback seeking behavior

In the present paper, we raise the question whether CEO transformational leadership invariably makes a difference for team performance and change effectiveness. Since in general, CEOs are surrounded by a team of highly influential top managers, we argue that the effectiveness of CEO transformational leadership is contingent on the feedback seeking behavior of their top management team (TMT). Data from 38 TMTs and their CEOs demonstrated that transformational leadership was positively related to both TMT performance and effectiveness of organizational change, but only when the TMT engaged in low levels of feedback seeking behavior. As predicted, there was no relationship between CEO transformational leadership and performance and change effectiveness for teams exhibiting high levels of feedback seeking behavior. These findings suggest that for high-feedback seeking TMTs, organizational results can be achieved without a transformational CEO.     

Transformational Leadership Education and Agency Perspectives in Business School Pedagogy: A Marriage of Inconvenience?

We critique transformational leadership education in university business schools based on a literature review, a study of the websites of 21 leading business schools, and an analysis of two presentations to business school students at Massachusetts Institute of Technology and Stanford University by the former CEO of General Electric, Jack Welch. Our critique draws attention to the unresolved tension between two motivating ideas that underpin much teaching in business schools: collective interest ideas that permeate transformational leadership education; and self-interest ideas derived from agency theory. Transformational leadership tends to be depicted as a process by which leaders exert a 'top-down' influence over the activities of others, while simultaneously asserting that their organizations have a common purpose and pursue a collective interest. We highlight the risk that business schools are producing graduates who will attempt to appeal to common needs (guided by precepts of transformational leadership) but who will simultaneously enact contradictory performance management systems (guided by agency theory). We encourage business school educators in leadership to adopt approaches which are more critical, relational and reflexive. We suggest some general directions for an alternative leadership prospectus, based on followership, the promotion of critical upward communication within organizations, and the recognition of leadership as a contested, discursive and co-constructed phenomenon.     

Chief executive officers' appearance predicts company performance,or does it? A replication study and extension focusing on CEO successions

In this article, we aim to replicate and extend a study that has revealed a link between naïve personality and leadership judgments and company profits. Rule and Ambady (2008) found that power- and leadership-related perceptions derived from CEOs' faces were significantly related to company profits. In our follow-up study and extension, we focus on CEO succession events to explore the longitudinal relationship between personality- and leadership-related perception ratings and company performance. We study the context of CEO successions to test whether variations in personality- and leadership-related perceptions from CEO faces are related to company performance and whether variations in company performance are associated with the type of CEO that is chosen. We can replicate the original correlative leadership effect using a temporal extension of the analysis horizon but fail to replicate the link between CEO leadership perceptions and company performance when using a different measure of performance and a different analytical approach to account for the longitudinal nature of our data. Our results have important implications for further theorizing on the relationship between subjective leadership perceptions and objective performance measures.     

Board leadership structure and diversity over CEO time in office: A test of the evolutionary perspective on Italian firms

An evolutionary perspective on CEO-board relations suggests that CEO objectives and interests change over time, and that board roles should shift accordingly, from CEO leadership development during the early stages of CEO time in office toward monitoring during the latest stages. This study examines how two board characteristics, board leadership structure and board diversity, shape innovation investment among Italian firms. Empirical results support the hypothesized effects, suggesting that the board’s effects are contingent upon CEO time in office.     

A review of the effectiveness of empowering leadership

Based on a review of empirical literature on empowering leadership, given incongruent and mixed results, the current work suggests reconsidering the effectiveness of empowering leadership. We propose a framework for examining the effectiveness of empowering leadership that considers: 1) feasibility of non-linear main effects of empowering leadership on work-related outcomes, 2) possibility of reverse causation between empowering leadership and work-related outcomes, 3) potential contradictory mediating mechanisms through which empowering leadership influences work-related outcomes, 4) consideration of boundary conditions which could alter the relationships between empowering leadership and work-related outcomes, and 5) consideration of levels-of-analysis and multilevel issues in empowering leadership. Our framework considers the multifaceted nature of empowering leadership and offers a guiding tool for advancing future research in this area.     

Inclusive leadership and team innovation: The role of team voice and performance pressure

In today's complex and rapidly changing business environment, team innovation is increasingly critical to the survival and success of organizations. Although the relevant literature highlights the importance of leadership in team innovation, previous studies have mainly focused on transformational leadership and have yielded inconsistent results. To address this void, this study integrates the goal-setting theory into the input-process-output framework and proposes a moderated mediation model to examine the relationship between inclusive leadership and team innovation. The results of hierarchical regression analysis from two survey-based field studies in China demonstrated that team voice mediated the relationship between inclusive leadership and team innovation and performance pressure moderated the direct relationship between inclusive leadership and team voice as well as the indirect relationship between inclusive leadership and team innovation via team voice such that the relationships were stronger when performance pressure was high.     

Empowering Leadership,Psychological Empowerment and Employee Outcomes: Testing a Multi‐level Mediating Model

This study examined the effects of empowering leadership on employees in a customer service organization, using data from 266 employees and their supervisors from 41 work teams in a division of a large Hong Kong telecommunications corporation. Empowering leadership had acceptable levels of within‐group agreement and between‐group variability, providing support for its analysis as a group‐level construct. Testing a multi‐level model in which psychological empowerment was hypothesized to mediate the relationship between both within‐group and between‐group empowering leadership and individual outcomes, empowering leadership was associated with psychological empowerment at both levels. There was evidence of significant mediation effects at both the individual and group levels. These findings underline the importance of analysing both within‐group and between‐group differences in empowering leadership and their effects on individual attitudes and behaviours.