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Article
Publication date: 20 April 2020

Inger N. Basker, Therese E. Sverdrup, Vidar Schei and Alexander M. Sandvik

This paper examines the relationship between chief executive officers' (CEOs') leadership behaviors (consideration and initiating structure) and firm and individual…

Abstract

Purpose

This paper examines the relationship between chief executive officers' (CEOs') leadership behaviors (consideration and initiating structure) and firm and individual performance (i.e. profitability, affective commitment and employees' willingness to change) in small and medium-sized firms (SMEs) that need to adapt to changing environments.

Design/methodology/approach

Survey data was collected from SMEs (28 firms, 235 employees) in the accounting industry along with objective performance register data (profit and return on assets). The predicted model was tested with multilevel structural equations modeling (MSEM) using a maximum likelihood estimator.

Findings

The CEO leadership behavior of initiating structure was positively related to firms' profitability, while the CEO leadership behavior of consideration was positively related to employees' willingness to change and affective commitment.

Practical implications

Small accounting firms typically offer standard services that are now being replaced by digital solutions. These firms have an incentive to offer new services, such as business advisory services. Therefore, leaders should embrace the duality of consideration and initiating structure to gain employees' willingness to change and optimize overall firm performance.

Originality/value

The paper contributes to leadership literature by examining a novel context (CEO consideration and initiation of structure in SMEs in uncertain environments) using a combination of firm performance measures (e.g. objective outcomes at the firm level and employees' willingness to change as a new measure at the individual level). In addition, it reports a comprehensive test of the full model using MSEM, the findings of which demonstrate the importance of dual leadership behaviors for CEOs.

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Article
Publication date: 7 March 2016

Robert Liden, Pingping Fu, Jun Liu and Lynda Song

The purpose of this paper is to examine the extent to which chief executive officer (CEO) transactional and transformational leader behaviors as well as CEO self-enhancing…

Abstract

Purpose

The purpose of this paper is to examine the extent to which chief executive officer (CEO) transactional and transformational leader behaviors as well as CEO self-enhancing versus self-transcendent values permeate through the organization to influence middle-level managers.

Design/methodology/approach

Using a multi-level longitudinal design, the authors collected self-reported value data from 32 CEOs and 119 top management team (TMT) members rated their CEOs on transactional and transformational leader behaviors at Time 1; 18 months later, TMTs rated the in-role behaviors and organizational citizenship behaviors (OCBs) of 331 mid-level managers. Also, at Time 2, mid-level managers evaluated their relationship with the organization in terms of economic and social exchange. HLM was used to analyze the data.

Findings

The authors found the positive relationship between transactional CEO leader behaviors and mid-level manager in-role behaviors to be enhanced when CEOs hold self-transcendent values, whereas this relationship was weakened by CEO self-enhancing values. Similarly, the relationship between CEO transformational leader behaviors and mid-level manager OCBs was found to be strengthened when leaders espoused self-transcendent values. Finally, the authors found that economic exchange mediated the relationship between the transactional leadership * self-enhancing values interaction term and mid-level manager in-role behaviors. Similarly, social exchange mediated the relationship between the transformational leadership * self-transcendent values interaction term and mid-level manager OCBs.

Originality/value

Leadership/OB.

Details

Nankai Business Review International, vol. 7 no. 1
Type: Research Article
ISSN: 2040-8749

Keywords

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Article
Publication date: 8 June 2012

Iain L. Densten and James C. Sarros

The purpose of this paper is to examine empirically the effect of cultural and social acceptance on CEO leadership.

Abstract

Purpose

The purpose of this paper is to examine empirically the effect of cultural and social acceptance on CEO leadership.

Design/methodology/approach

Several instruments were used to capture key concepts (i.e. Organisational Culture Profile, Marlowe‐Crowne Social Desirability Scale, Transformational Leadership Inventory, and Leader Reward and Punishment Questionnaire), which were examined using confirmatory factor analysis. Data were collected from 635 Australian CEOs.

Findings

The results of hierarchical multi‐regression analysis clarified the importance of self‐deception and impression management as influential context factors, and how both operate at the pinnacle of organisations. The study also identifies that transformational and transactional leadership behaviours were uniquely influenced by specific cultural dimensions, and suggests that CEOs use combinations of these behaviours to respond to four cultural dimensions (i.e. emphasis on rewards, performance orientation, innovation, and stability) in order to produce competitive advantages.

Research limitations/implications

The study highlights how CEOs are still vulnerable to conforming to the social norms of their organisation and also how CEOs use a repertoire of leadership behaviours, in response to the importance of different cultural dimensions.

Originality/value

The paper contributes to the leadership literature by directly addressing how context impacts on CEO leadership in three specific areas: social acceptance needs, demographics and culture. Further, the study investigates CEO transformational and transactional leadership behaviours rather than global constructs, and directly addresses the common method variance issue.

Details

Leadership & Organization Development Journal, vol. 33 no. 4
Type: Research Article
ISSN: 0143-7739

Keywords

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Article
Publication date: 7 August 2017

Jianxun Chen, Songbo liu, Yue Wang, Tao Wang and Xueqiang Zheng

Based on the team conflict theory and organizational learning theory, this study aims to discuss the two different types of conflicts of the top management team (TMT) on…

Abstract

Purpose

Based on the team conflict theory and organizational learning theory, this study aims to discuss the two different types of conflicts of the top management team (TMT) on the different mechanisms of exploratory learning behavior of firms, and, based on the perspective of CEO-TMT (CEO – chief executive officer) interface, the different moderating effects caused by different CEO leadership styles are clarified.

Design/methodology/approach

Using the sample of 193 firms’ samples with multi-source data, the authors take an empirical test of the theoretical framework.

Findings

The effect of task conflict on exploratory learning behavior was insignificant, and relationship conflict had a positive effect on exploratory learning behavior. However, when CEO’s transformational leadership level was high, or transactional leadership level was low, there existed “bathtub curve” relationship between task conflict and exploratory learning behavior, and the relationship conflict under these conditions strengthened exploratory learning behavior. When CEO’s transactional leadership level was high, or transformational leadership level was low, there existed the inverted U-shaped relationship between task conflict and exploratory learning behavior, and the relationship conflict under such conditions weakened exploratory learning behavior.

Originality/value

First, the authors challenge the assumption of linear mechanism of task conflict, trying to build the mechanism of curve hypothesis, and the nonlinear explanation might be able to integrate the inconsistent results in the existing literature. Second, according to the inconsistent results of relationship conflict in existing literature, this study takes perspective of the CEO-TMT and introduces CEO leadership behavior as a moderating variable to test the moderating effect of CEO leadership and clarifies the boundary conditions of TMT conflicts.

Details

Nankai Business Review International, vol. 8 no. 3
Type: Research Article
ISSN: 2040-8749

Keywords

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Article
Publication date: 15 August 2016

Bhaskar Prasad and Paulina Junni

Organizational innovation is critical for firm competitive advantage. Yet, we do not know enough about the relationship between leadership and organizational innovation…

Abstract

Purpose

Organizational innovation is critical for firm competitive advantage. Yet, we do not know enough about the relationship between leadership and organizational innovation. The purpose of this paper is to examine the influence of chief executive officer (CEO) transformational and transactional leadership on organizational innovation. The authors examine the moderating role of environmental dynamism.

Design/methodology/approach

The authors collected survey-based data from top management team members in 163 companies in services, construction, manufacturing and other industries in the USA. The authors used multiple regression analyses to test the study hypotheses.

Findings

The empirical findings indicate that CEO transformational and transactional leadership behaviors positively influence organizational innovation. However, organizations benefit more from transformational leadership in dynamic environments.

Originality/value

This study highlights the role of CEO leadership behavior in the pursuit of organizational innovation. Significantly, the study shows that both transformational and transactional leadership can enhance organizational innovation. However, their effectiveness is contingent on environmental dynamism. This contributes to the firm innovation literature by clarifying how specific types of CEO leadership influence organizational innovation in different environmental conditions.

Details

Management Decision, vol. 54 no. 7
Type: Research Article
ISSN: 0025-1747

Keywords

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Article
Publication date: 5 September 2016

Urs Baldegger and Johanna Gast

The purpose of this paper is to explore the emergence and development of leadership within the context of new ventures.

Abstract

Purpose

The purpose of this paper is to explore the emergence and development of leadership within the context of new ventures.

Design/methodology/approach

A qualitative approach was conducted to analyze in-depth the circumstances under which leadership is emerging and evolving in new ventures. In doing so, 55 founder-CEOs from Austria, Liechtenstein and Switzerland were interviewed.

Findings

The findings suggest that during the development from new ventures to early growth ventures the founder-CEOs and their organizations experience three major transitions. First, the founder-CEOsleadership behavior tends to emerge and evolve alongside firm development from being more transformational in new ventures to more transactional in early growth ventures. Second, the decisive employee selection criteria change over time, and the initially important person-founder fit turns into a person-organization fit. Third, a transition from a rather external perspective of the founder-CEOs in the new venture stage to a more internally oriented perspective in the early stages of growth was observed.

Research limitations/implications

Although the findings advance research on leadership in new ventures, the limitations concerning potential recall biases and subjectivism have to be kept in mind.

Practical implications

In practice, the findings imply that the emergence and development of leadership in new ventures should be seen as a dynamic process.

Originality/value

This paper is one of the first to study in-depth the emergence and development of leadership in the context of new ventures.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 22 no. 6
Type: Research Article
ISSN: 1355-2554

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Article
Publication date: 7 August 2017

Terrill L. Frantz and Ajay K. Jain

The purpose of this paper is to examine the relationship between CEO leadership behavior and the culture of the organization within the context of Indian organizations.

Abstract

Purpose

The purpose of this paper is to examine the relationship between CEO leadership behavior and the culture of the organization within the context of Indian organizations.

Design/methodology/approach

Two five-scale questionnaires were completed by senior executives (n=485) who have interaction with their CEO. The first instrument captured the executives’ perspective of their CEO’s leadership behavior along six dimensions (People Centric, Global Ambitions, Opportunity Sensing, Visionary, Exemplary, and Dependable). The second instrument captured the executives’ perspective of their organization’s culture along six dimensions (Results Focused, Talent Development, Employee Empowerment, Equity and Fairness, Open Communication, and Decentralization). These data were analyzed using factor analysis, correlation analysis, and least-squares regression.

Findings

A correlation analysis indicates that a significant relationship exists between several aspects of CEO leadership behavior and characteristics of the organizational culture. Regression analysis indicated that the overall CEO leadership behavior prominently explains (R2=0.397) the organization’s culture. Notably, two CEO dimensions, People Centricity and Global Ambition, were found to have an exceptionally high degree of association with the culture of the organization.

Research limitations/implications

There is consistency between findings from western academic leader-culture research and the same in the Indian work setting.

Practical implications

Findings of this study can serve as a guidepost for the selection of leaders in an organization.

Originality/value

There is a scarcity of leader-organization research involving national culture features; the Indian context is fundamental to this study and is called for by the growing presence of India-born leadership in western organizations.

Details

Leadership & Organization Development Journal, vol. 38 no. 6
Type: Research Article
ISSN: 0143-7739

Keywords

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Article
Publication date: 1 February 2021

Yeunjae Lee and Weiting Tao

From an internal perspective, the purpose of this study is to understand employees' responses to chief executive officer (CEO) activism, a phenomenon wherein a company's…

Abstract

Purpose

From an internal perspective, the purpose of this study is to understand employees' responses to chief executive officer (CEO) activism, a phenomenon wherein a company's CEO expresses his/her own opinions and ideas on controversial sociopolitical issues. Integrating corporate social responsibility (CSR), public relations and leadership literature, this study examines the effects of employees' expectations toward CEOs and transformational CEO leadership on the perceived morality of CEO activism and its attitudinal and behavioral outcomes.

Design/methodology/approach

An online survey was conducted with 417 full-time employees in the US whose CEO has been engaging in sociopolitical issues.

Findings

The results showed that employees' ethical expectations toward their CEOs and transformational CEO leadership were positively associated with perceived morality of CEO activism, whereas economic expectations toward CEOs had no significant relationship with it. In turn, perceived morality of CEO activism contributed to employees' positive attitudes and supportive behaviors for their CEOs and their companies.

Originality/value

This study is among the first attempts to examine the effectiveness of CEO activism from an internal perspective, drawing from CSR, public relations and leadership literature.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

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Article
Publication date: 21 May 2010

Dongil Jung, Francis Chan, Gongmeng Chen and Chee Chow

The unique cultural and historical background of Chinese firms makes it likely that Western‐based findings on the nature and effects of chief operating officer (CEO

Abstract

The unique cultural and historical background of Chinese firms makes it likely that Western‐based findings on the nature and effects of chief operating officer (CEO) leadership may not generalize to them. Recently, Tsui et al. (2004) have identified four distinct leadership styles among Chinese CEOs based on a set of leadership behaviors that reflect the Chinese cultural framework. They further inferred from an analysis of 25 successful firms that all four leadership styles can be effective in the current Chinese context. The objective of this study is to test the robustness of Tsui et al.'s (2004) findings—especially their inference about leadership styles' effects. Survey data from mid‐ to high‐level managers of 116 listed Chinese firms are combined with these firms' publicly available financial statements. The results strongly support the existence of Tsui et al.'s (2004) four CEO leadership styles. However, they also reveal that leadership style and environmental uncertainty have a significant interaction effect on firm performance. This finding implies that each leadership style's performance effects may be dampened or magnified by select firm characteristics.

Details

Journal of Asia Business Studies, vol. 4 no. 2
Type: Research Article
ISSN: 1558-7894

Keywords

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Article
Publication date: 9 May 2016

Jun Huang, Weiwen Li, Canhua Qiu, Frederick Hong-kit Yim and Junbao Wan

The purpose of this paper is to draw on the theory of servant leadership to examine the influence of chief executive officer (CEO) servant leadership on firm performance…

Abstract

Purpose

The purpose of this paper is to draw on the theory of servant leadership to examine the influence of chief executive officer (CEO) servant leadership on firm performance in the hospitality industry. It examined the mediating role of the service climate and the moderating role of competitive intensity in the relationship between CEO servant leadership and firm performance.

Design/methodology/approach

Multiple regression was used to analyze multi-wave, multi-source data from 92 hotels in China. A moderated path analysis was used to test the moderating effects.

Findings

CEO servant leadership positively influenced firm performance via the service climate in the hospitality industry. Competitive intensity strengthened the direct effect of the service climate on firm performance, and the indirect effect of CEO servant leadership on firm performance via service climate.

Research limitations/implications

The findings offer managerial insights into CEO succession, service management and human resource management.

Originality/value

This is one of the first studies to investigate how and when CEO servant leadership might shape firm outcomes in the hospitality industry. Theoretically, the findings enrich our understanding of how CEO leadership might shape firm-level outcomes.

Details

International Journal of Contemporary Hospitality Management, vol. 28 no. 5
Type: Research Article
ISSN: 0959-6119

Keywords

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