Session 458

Those at the Top Matter!

Track O

Date: Monday, September 22, 2014

 

Time: 08:00 – 09:15

Paper

Room: Estancia 307


Session Chair:

  • Markus Menz, University of Geneva

Title: Managerial Racial and Gender Diversity and Firm Performance: The Moderating Role of Alliance Network Structure

Authors

  • Goce Andrevski, Queen's University
  • Orlando Richard, University of Texas-Dallas
  • Sheryl Skaggs, University of Texas-Dallas
  • Weichieh Su, National Chengchi University

Abstract: In the context of alliance network structure, we explore the effects of managerial racial and gender diversity on firm performance (i.e., return on assets). Using automobile industry data spanning 20 years (1989–2008) in Study 1 and computer industry data spanning five years (2007–2011) in Study 2, we examine the extent to which firm-level alliance network structure moderates the relationships. We find managerial racial and gender diversity to be more positively related to performance when firms are embedded in sparse networks rich in structural holes. In contrast, homogenous management groups benefit more from dense network structures than from sparse network structures. We offer research and practical implications to the fields of organizational demography and social networks.

Title: The Cosmetics of Leadership: Understanding the Fading Effects of CEO Assertiveness and Charisma on Market Performance

Authors

  • Federico Aime, Oklahoma State University
  • Stephen Humphrey, Penn State University
  • Oleg Petrenko, Texas Tech University
  • Aaron Hill, Oklahoma State University
  • Jason Ridge, University of Arkansas

Abstract: This study examines the persistence of the effects of CEO perceived charisma and assertiveness on market performance. Our results indicate that an initial positive effect of CEO charisma on market performance fades over time. Similarly, the initial negative effect of CEO assertiveness on market performance fades over time. These findings are consistent with the cosmetic nature of such characteristics. We further show that CEO charisma and assertiveness are related to observable appearance and behavioral aspects of CEOs like affect, physical attractiveness, voice patterns, and relational personality characteristics. We find support for our ideas with a sample of 164 CEOs, operationalizing CEO characteristics with a novel media-based measurement technique that uses third party ratings of CEOs with validated psychometric scales.

Title: The Power of Strategy: When Chief Strategy Officer Power in the Top Management Team Matters

Authors

  • Markus Menz, University of Geneva
  • Christine Scheef, University of St. Gallen
  • Elisabeth Radek, University of St. Gallen

Abstract: While firms increasingly choose to have a chief strategy officer (CSO) in the top management team (TMT), the influence of this executive varies considerably across firms. Drawing upon upper echelons research, we argue that the CSO’s structural power in the TMT is positively associated with firm performance and that its benefits are contingent upon the TMT’s cognitive diversity and the structural need for such a position. Based on a sample of 184 CSOs in S&P 500 firms, we find that CSO power in the TMT is not advantageous per se, but that the TMT’s composition and structure – TMT functional heterogeneity, TMT age heterogeneity, TMT divisionalization, and chief operating officer presence – affect the relationship between CSO power and firm performance.

Title: Who You Are Matters: The Effect of Board Diversity on Corporate Social Performance

Authors

  • Laura Gasiorowski, Temple University
  • Xueming Luo, Temple University

Abstract: We examine the impact of top management diversity on strategic decisions concerning corporate social responsibility (CSR). We develop and test a theoretical framework that aims to clarify the relationships between board diversity, CEO separation, and CSR. We test our framework using panel data on CSR ratings, director background, and CEO characteristics over the period 2007-2011. Preliminary results suggest that gender and outsider diversity are positively associated with CSR while tenure and ethnicity diversity negatively impact CSR. We also find a curvilinear relationship between less ethnicity diversity and CSR. Further, we find that the CEO is less important than the board in impacting CSR. Our framework contributes to the literature by unpacking and clarifying the boundary conditions of how board diversity affects CSR performance.

All Sessions in Track O...

Sun: 08:00 – 09:15
Session 311: The Power of Power: The Role of Power and Politics in Strategy Processes
Session 386: Entrepreneurial Corporate Governance
Sun: 11:15 – 12:30
Session 476: The Dark Side of Strategic Leadership and Governance
Sun: 15:45 – 17:00
Session 435: What Happens After the CEO Has (Been) Gone?
Sun: 17:15 – 18:30
Session 611: Strategic Leadership and Governance IG Business Meeting
Mon: 08:00 – 09:15
Session 335: Internationalization and Strategic Decisions
Session 458: Those at the Top Matter!
Mon: 11:00 – 12:15
Session 336: CEO Roles, Frames, and Traits
Mon: 14:45 – 16:00
Session 331: CEO Compensation: What we Know, What we Need to Study
Mon: 16:30 – 17:45
Session 337: Power at the Top - The Influence of Directors
Session 411: Ownership and Governance
Tue: 08:00 – 09:15
Session 428: Managing External Dependencies
Session 467: Putting Pressure on the CEO
Tue: 11:00 – 12:15
Session 465: The Importance of Corporate Governance
Tue: 15:30 – 16:45
Session 429: Director Selection and Influence
Tue: 17:15 – 18:30
Session 431: Agents, Principals, and Owners
Session 432: Upper Echelons Revisited


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