Earthquake or glacier? How CEO charisma manifests in firm strategy over time

Strategic Management Journal

Volumn 37, Issue 3, 2016, Pages 586-603

  Wowak, Adam J ^a   Mannor, Michael J ^a   Arrfelt, Mathias ^b   McNamara, Gerry ^c  

^a UNIVERSITY OF NOTRE DAME   (United States)

^b ARIZONA STATE UNIVERSITY   (United States)

^c MICHIGAN STATE UNIVERSITY   (United States)

Author keywords

CEOs; charisma; executive tenure; strategic decision making; upper echelons

Indexed keywords

PLANNING;

CEOS; CHARISMA; EXECUTIVE TENURE; STRATEGIC DECISION MAKING; UPPER ECHELONS;

DECISION MAKING;

EID: 84920885463     PISSN: 01432095     EISSN: 10970266     Source Type: Journal    
DOI: 10.1002/smj.2346     Document Type: Article

References (97)

1. Agle BR, Mitchell RK, Sonnenfeld JA,. 1999. Who matters to CEOs? An investigation of stakeholder attributes and salience, corporate performance, and CEO values. Academy of Management Journal 42 (5): 507-525.
2. Agle BR, Nagarajan NJ, Sonnenfeld JA, Srinivasan D,. 2006. Does CEO charisma matter? An empirical analysis of the relationships among organizational performance, environmental uncertainty, and top management team perceptions of CEO charisma. Academy of Management Journal 49 (1): 161-174.
3. Avolio BJ, Bass BM,. 1995. Individual consideration viewed at multiple levels of analysis: a multi-level framework for examining the diffusion of transformational leadership. Leadership Quarterly 6 (2): 199-218.
4. Barney JB,. 1986. Organizational culture: can it be a source of sustained competitive advantage? Academy of Management Review 11 (3): 656-665.
5. Bass BM,. 1985. Leadership and Performance Beyond Expectations. Free Press: New York.
6. Bass BM,. 1990. From transactional to transformational leadership: learning to share the vision. Organizational Dynamics 18 (3): 19-31.
7. Bass BM, Steidlmeier P,. 1999. Ethics, character, and authentic transformational leadership behavior. Leadership Quarterly 10 (2): 181-217.
8. Bednar MK, Westphal JD,. 2006. Surveying the corporate elite: theoretical and practical guidance on improving response rates and response quality in top management survey questionnaires. In Research Methodology in Strategy and Management, Ketchen DJ, Bergh DD, (eds). JAI Press: New York; 37-55.
9. Bhojraj S, Lee CMC, Oler DK,. 2003. What's my line? A comparison of industry classification schemes for capital market research. Journal of Accounting Research 41 (5): 745-774.
10. Bigley GA, Wiersema M,. 2002. New CEOs and corporate strategic refocusing: how experience as heir apparent influences the use of power. Administrative Science Quarterly 47 (4): 707-727.
11. Blettner DP, Chaddad FR, Bettis RA,. 2012. The CEO performance effect: statistical issues and a complex fit perspective. Strategic Management Journal 33 (8): 986-999.
12. Boeker W,. 1997. Strategic change: the influence of managerial characteristics and organizational growth. Academy of Management Journal 40 (1): 152-170.
13. Bono JE, Judge TA,. 2004. Personality and transformational and transactional leadership: a meta-analysis. Journal of Applied Psychology 89 (5): 901-910.
14. Chadwick C, Super JF, Kwon K,. 2014. Resource orchestration in practice: CEO emphasis on SHRM, commitment-based HR systems, and firm performance. Strategic Management Journal in press. DOI: 10.1002/smj.2217.
15. Chandler AD,. 1962. Strategy and Structure: Chapters in the History of the American Industrial Enterprise. MIT Press: Cambridge, MA.
16. Chatterjee A, Hambrick DC,. 2007. It's all about me: narcissistic CEOs and their effects on company strategy and performance. Administrative Science Quarterly 52 (3): 351-386.
17. Chatterjee A, Hambrick DC,. 2011. Executive personality, capability cues, and risk-taking: how narcissistic CEOs react to their successes and stumbles. Administrative Science Quarterly 56 (2): 202-237.
18. Chin MK, Hambrick DC, Treviño LK,. 2013. Political ideologies of CEOs: the influence of executives' values on corporate social responsibility. Administrative Science Quarterly 58 (2): 197-232.
19. Choi J, Wang H,. 2009. Stakeholder relations and the persistence of corporate financial performance. Strategic Management Journal 30 (8): 895-907.
20. Conger JA,. 1999. Charismatic and transformational leadership in organizations: an insider's perspective on these developing streams of research. Leadership Quarterly 10 (2): 145-179.
21. Conger JA, Kanungo RN,. 1987. Toward a behavioral theory of charismatic leadership in organizational settings. Academy of Management Review 12 (4): 637-647.
22. Conger JA, Kanungo RN,. 1998. Charismatic Leadership in Organizations. Sage: Thousand Oaks, CA.
23. Crant JM, Bateman TS,. 2000. Charismatic leadership viewed from above: the impact of proactive personality. Journal of Organizational Behavior 21 (1): 63-75.
24. Crilly D, Sloan P,. 2012. Enterprise logic: explaining corporate attention to stakeholders from the 'inside-out'. Strategic Management Journal 33 (10): 1174-1193.
25. Crossland C, Zyung J, Hiller NJ, Hambrick DC,. 2014. CEO career variety: effects on firm-level strategic and social novelty. Academy of Management Journal 57 (3): 652-674.
26. Cycyota CS, Harrison DA,. 2006. What (not) to expect when surveying executives. Organizational Research Methods 9 (2): 133-160.
27. Deluga RJ,. 1997. Relationship among American presidential charismatic leadership, narcissism, and rated performance. Leadership Quarterly 8 (1): 49-65.
28. Dess GG, Beard DW,. 1984. Dimensions of organizational task environments. Administrative Science Quarterly 29 (1): 52-73.
29. Devers CE, McNamara G, Wiseman RM, Arrfelt M,. 2008. Moving closer to the action: examining compensation design effects on firm risk. Organization Science 19 (4): 548-566.
30. Dierickx I, Cool K,. 1989. Asset stock accumulation and sustainability of competitive advantage. Management Science 35 (12): 1504-1511.
31. Dixon WJ,. 1960. Simplified estimation from censored normal samples. The Annals of Mathematical Statistics 31 (2): 385-391.
32. Donaldson T, Preston LE,. 1995. The stakeholder theory of the corporation: concepts, evidence, and implications. Academy of Management Review 20 (1): 65-91.
33. Fanelli A, Misangyi VF,. 2006. Bringing out charisma: CEO charisma and external stakeholders. Academy of Management Review 31 (4): 1049-1061.
34. Fanelli A, Misangyi VF, Tosi HL,. 2009. In charisma we trust: the effects of CEO charismatic visions on securities analysts. Organization Science 20 (6): 1011-1033.
35. Finkelstein S,. 1992. Power in top management teams: dimensions, measurement, and validation. Academy of Management Journal 35 (3): 505-538.
36. Finkelstein S, Hambrick DC,. 1990. Top-management-team tenure and organizational outcomes: the moderating role of managerial discretion. Administrative Science Quarterly 35 (3): 484-503.
37. Finkelstein S, Hambrick DC, Cannella AA,. 2009. Strategic Leadership: Theory and Research on Executives, Top Management Teams, and Boards. Oxford University Press: New York.
38. Floyd SW, Wooldridge B,. 1992. Middle management involvement in strategy and its association with strategic type: a research note. Strategic Management Journal 13 (S1): 153-167.
39. Flynn FJ, Staw BM,. 2004. Lend me your wallets: the effect of charismatic leadership on external support for an organization. Strategic Management Journal 25 (4): 309-330.
40. Galvin BM, Waldman DA, Balthazard P,. 2010. Visionary communication qualities as mediators of the relationship between narcisissm and attributions of leader charisma. Personnel Psychology 63 (3): 509-537.
41. Geletkanycz MA, Hambrick DC,. 1997. The external ties of top executives: implications for strategic choice and performance. Administrative Science Quarterly 42 (4): 654-681.
42. Hambrick DC,. 2007. Upper echelons theory: an update. Academy of Management Review 32 (2): 334-343.
43. Hambrick DC, Finkelstein S,. 1987. Managerial discretion: a bridge between polar views on organizations. In Research in Organizational Behavior (Volume 9), Cummings LL, Staw BM, (eds). JAI Press: Greenwich, CT; 369-406.
44. Hambrick DC, Fukutomi GDS,. 1991. The seasons of a CEO's tenure. Academy of Management Review 16 (4): 719-742.
45. Hambrick DC, Mason PA,. 1984. Upper echelons: the organization as a reflection of its top managers. Academy of Management Review 9 (2): 193-206.
46. Hambrick DC, Quigley TJ,. 2014. Toward more accurate contextualization of the CEO effect on firm performance. Strategic Management Journal 35 (4): 473-491.
47. Hannan MT, Freeman J,. 1977. The population ecology of organizations. American Journal of Sociology 82 (5): 929-964.
48. Hardin JW, Hilbe JM,. 2003. Generalized Estimating Equations. CRC Press: Boca Raton, FL.
49. Hillman AJ, Keim GD,. 2001. Shareholder value, stakeholder management, and social issues: what's the bottom line? Strategic Management Journal 22 (2): 125-139.
50. Hoskisson RO, Johnson RA,. 1992. Corporate restructuring and strategic change: the effect on diversification strategy and R&D intensity. Strategic Management Journal 13 (8): 625-634.
51. House RJ,. 1977. A 1976 theory of charismatic leadership. In Leadership: The Cutting Edge, Hunt JG, Larson LL, (eds). Southern Illinois University Press: Carbondale, IL; 189-207.
52. House RJ, Baetz ML,. 1979. Leadership: Some empirical generalizations and new research directions. In Research in Organizational Behavior (Volume 1)., Staw BM, (ed.), JAI Press: Greenwich, CT; 341-423.
53. House RJ, Spangler WD, Woycke J,. 1991. Personality and charisma in the U.S. presidency: a psychological theory of leader effectiveness. Administrative Science Quarterly 36 (3): 364-396.
54. Kacperczyk A,. 2009. With greater power comes greater responsibility? Takeover protection and corporate attention to stakeholders. Strategic Management Journal 30 (3): 261-285.
55. Klein KJ, House RJ,. 1995. On fire: charismatic leadership and levels of analysis. Leadership Quarterly 6 (2): 183-198.
56. LeBreton JM, Senter JL,. 2008. Answers to 20 questions about interrater reliability and interrater agreement. Organizational Research Methods 11 (4): 815-852.
57. Li SX, Greenwood R,. 2004. The effect of within-industry diversification on firm performance: synergy creation, multi-market contact and market structuration. Strategic Management Journal 25 (12): 1131-1153.
58. Liang K-Y, Zeger SL,. 1986. Longitudinal data analysis using generalized linear models. Biometrika 73 (1): 13-22.
59. Lieberson S, O'Connor JF,. 1972. Leadership and organizational performance: a study of large corporations. American Sociological Review 37 (2): 117-130.
60. Ling Y, Simsek Z, Lubatkin MH, Veiga JF,. 2008. The impact of transformational CEOs on the performance of small- to medium-sized firms: does organizational context matter? Journal of Applied Psychology 93 (4): 923-934.
61. Lowe KB, Kroeck KG, Sivasubramaniam N,. 1996. Effectiveness correlates of transformational and transactional leadership: a meta-analytic review of the MLQ literature. Leadership Quarterly 7 (3): 385-425.
62. de Luque MS, Washburn NT, Waldman DA, House RJ,. 2008. Unrequited profit: how stakeholder and economic values relate to subordinates' perceptions of leadership and firm performance. Administrative Science Quarterly 53 (4): 626-654.
63. Mackey A, Mackey TB, Barney JB,. 2007. Corporate social responsibility and firm performance: investor preferences and corporate strategies. Academy of Management Review 32 (3): 817-835.
64. Maon F, Lindgreen A, Swaen V,. 2009. Designing and implementing corporate social responsibility: an integrative framework grounded in theory and practice. Journal of Business Ethics 87 (1): 71-89.
65. McGahan AM, Porter ME,. 1997. How much does industry matter, really? Strategic Management Journal 18 (S1): 15-30.
66. McNamara G, Vaaler PM, Devers CE,. 2003. Same as it ever was: the search for evidence of increasing hypercompetition. Strategic Management Journal 24 (3): 261-278.
67. Miller D,. 1991. Stale in the saddle: CEO tenure and the match between organization and environment. Management Science 37 (1): 34-52.
68. Mintzberg H,. 1978. Patterns in strategy formation. Management Science 24 (9): 934-948.
69. Nadkarni S, Barr PS,. 2008. Environmental context, managerial cognition, and strategic action: an integrated view. Strategic Management Journal 29 (13): 1395-1427.
70. Palepu K,. 1985. Diversification strategy, profit performance, and the entropy measure. Strategic Management Journal 6 (3): 239-255.
71. Peterson RS, Smith DB, Martorana PV, Owens PD,. 2003. The impact of chief executive officer personality on top management team dynamics: one mechanism by which leadership affects organizational performance. Journal of Applied Psychology 88 (5): 795-808.
72. Pfeffer J,. 1981. Management as symbolic action: the creation and maintenance of organizational paradigms. In Research in Organizational Behavior (Volume 3), Cummings LL, Staw BM, (eds). JAI Press: Greenwich, CT; 1-52.
73. Porter ME,. 1996. What is strategy? Harvard Business Review 74 (6): 61-78.
74. Resick CJ, Whitman DS, Weingarden SM, Hiller NJ,. 2009. The bright-side and the dark-side of CEO personality: examining core self-evaluations, narcissism, transformational leadership, and strategic influence. Journal of Applied Psychology 94 (6): 1365-1381.
75. Romanelli E, Tushman ML,. 1994. Organizational transformation as punctuated equilibrium: an empirical test. Academy of Management Journal 37 (5): 1141-1166.
76. Schneider B,. 1987. The people make the place. Personnel Psychology 40 (3): 437-453.
77. Shamir B,. 1991. The charismatic relationship: alternative explanations and predictions. Leadership Quarterly 2 (2): 81-104.
78. Shamir B,. 2011. Leadership takes time: some implications of (not) taking time seriously in leadership research. Leadership Quarterly 22 (2): 307-315.
79. Shamir B, House RJ, Arthur MB,. 1993. The motivational effects of charismatic leadership: a self-concept based theory. Organization Science 4 (4): 577-594.
80. Shamir B, Howell JM,. 1999. Organizational and contextual influences on the emergence and effectiveness of charismatic leadership. Leadership Quarterly 10 (2): 257-283.
81. Sosik JJ,. 2005. The role of personal values in the charismatic leadership of corporate managers: a model and preliminary field study. Leadership Quarterly 16 (2): 221-244.
82. Thompson JD,. 1967. Organizations and Action. McGraw-Hill: New York.
83. Tosi HL, Misangyi VF, Fanelli A, Waldman DA, Yammarino FJ,. 2004. CEO charisma, compensation, and firm performance. Leadership Quarterly 15 (3): 405-420.
84. Waddock SA, Graves SB,. 1997. The corporate social performance-financial performance link. Strategic Management Journal 18 (4): 303-319.
85. Waldman DA, Javidan M, Varella P,. 2004. Charismatic leadership at the strategic level: a new application of upper echelons theory. Leadership Quarterly 15 (3): 355-380.
86. Waldman DA, Ramírez GG, House RJ, Puranam P,. 2001. Does leadership matter? CEO leadership attributes and profitability under conditions of perceived environmental uncertainty. Academy of Management Journal 44 (1): 134-143.
87. Waldman DA, Siegel DS, Javidan M,. 2006. Components of CEO transformational leadership and corporate social responsibility. Journal of Management Studies 43 (8): 1703-1725.
88. Waldman DA, Yammarino FJ,. 1999. CEO charismatic leadership: levels-of-management and levels-of-analysis effects. Academy of Management Review 24 (2): 266-285.
89. Webb E, Weick KE,. 1979. Unobtrusive measures in organizational theory: a reminder. Administrative Science Quarterly 24 (4): 650-659.
90. Weber M,. 1947. In The Theory of Social and Economic Organization., Henderson AM, Parsons T, (trans), Oxford University Press: New York.
91. Westphal JD, Seidel M-DL, Stewart KJ,. 2001. Second-order imitation: uncovering latent effects of board network ties. Administrative Science Quarterly 46 (4): 717-747.
92. Wiersema MF, Bantel KA,. 1992. Top management team demography and corporate strategic change. Academy of Management Journal 35 (1): 91-121.
93. Wiersema MF, Zhang Y,. 2011. CEO dismissal: the role of investment analysts. Strategic Management Journal 32 (11): 1161-1182.
94. Wowak AJ, Hambrick DC,. 2010. A model of person-pay interaction: how executives vary in their responses to compensation arrangements. Strategic Management Journal 31 (8): 803-821.
95. Yuan W, Bao Y, Verbeke A,. 2011. Integrating CSR initiatives in business: an organizing framework. Journal of Business Ethics 101 (1): 75-92.
96. Yukl GA,. 1999. An evaluation of conceptual weaknesses in transformational and charismatic leadership theories. Leadership Quarterly 10 (2): 285-305.
97. Yukl G,. 2008. How leaders influence organizational effectiveness. Leadership Quarterly 19 (6): 708-722.