CEO vigilance and hypercompetition: CEO attention in resource utilization and firm competitive aggressiveness
ISSN: 0025-1747
Article publication date: 3 October 2023
Issue publication date: 7 November 2023
Abstract
Purpose
By integrating perspectives from the resource-based view, attention-based view, upper echelon theory and competitive dynamics (CD), the authors seek to understand how chief executive officer (CEO) vigilance influences the way resources are utilized in relation to competitive behavior.
Design/methodology/approach
This study's empirical analysis is conducted using a longitudinal design in the US software and IT services industry with a final sample consisting of 44 publicly traded firms and 471 firm-year observations from 1995 to 2009. The authors respectively use the fixed-effects negative binomial model and generalized estimating equation (GEE) model to test the effects of technology resource breadth on competitive intensity and competitive deviance and the interacting effects with CEO attention broadness and uniqueness.
Findings
This study's results show that CEO vigilance (attention broadness and uniqueness) interacts with technology resource breadth to jointly influence competitive intensity and deviance. Firms with vigilant CEOs utilize firm resources to compete less intensively but in an unconventional way.
Practical implications
This study reveals that when CEOs have a broader focus and attend to a wide range of information, their ability to quickly utilize firm resources for formulating competitive actions decreases. Consequently, it is crucial for CEOs to acknowledge the limitations of their attentional capacity. They need to understand that the allocation of their attention and information processing capacity has significant implications for the speed and quality of their decision-making processes.
Originality/value
The authors conceptualize and operationalize CEO vigilance, which is a novel construct that has not been studied. The authors show that CEO vigilance plays critical roles in utilizing resources to compete. This study offers significant research implications for attention-based view, upper-echelons theory, CD perspective and resource-based view.
Keywords
Citation
Li, M. and Yang, J. (2023), "CEO vigilance and hypercompetition: CEO attention in resource utilization and firm competitive aggressiveness", Management Decision, Vol. 61 No. 11, pp. 3255-3277. https://doi.org/10.1108/MD-02-2023-0187
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited