Session 70

CEO Characteristics: Microfoundations of Behavioral Strategy

Track P

Date: Tuesday, October 6, 2015

Track X

Time: 11:00 – 12:15

Paper

Room: Governor's Square 9


Session Chair:

  • Daniela Blettner, Simon Fraser University

Title: Just Playing Around: The Effects of a Ceo’s Sense of Humor on Innovation and Analysts Ratings

Authors

  • Robert Campbell, University of Georgia

Abstract: Executive personality is increasingly recognized as an important determinant of firm behaviors and outcomes. Despite the abundance of research on executive personality in the upper echelons, little is understood about the implications of an executive having a sense of humor. In this study, I draw on reversal theory, a theory of personality, and investigate how CEO sense of humor influences two important firm outcomes: organizational innovation and analyst ratings. I argue that CEO sense of humor has positive implications for both organizational innovation and analyst ratings. I also describe preliminary plans for empirical tests of these arguments.

Title: Stirring Under Calm Conditions: Acquisitive Nature of Extraverted Executives

Authors

  • Shavin Malhotra, University of Waterloo
  • Taco Reus, Erasmus University-Rotterdam
  • Pengcheng Zhu, University of San Diego
  • Erik Roelofsen, Erasmus University-Rotterdam

Abstract: In this paper, we consider how a well-known personality trait – extraversion-introversion – could influence CEO behavior, and ensuing strategic decisions of the firm. Extraverted CEOs are more optimistic, bold, forceful, self-confident and spontaneous than their introverted colleagues. Using a novel technique to gauge personality of a large sample of CEOs, this study reveals that this personality trait has important bearing on firms and their corporate direction. Specifically, we find that extraverted CEOs are more likely to engage in acquisitions, conduct more acquisitions, and conduct larger and more unrelated acquisitions. Moreover, we find that the acquisitive nature of extraverted CEOs reveals itself particularly in situations when there is less of an external drive for doing M&As – i.e., conditions of relatively low competitive rivalry and low velocity.

Title: The Impact of Near-Retirement CEOs’ Characteristics and Social Contexts on Their Investment Decisions: Evidence from Firm Founders and Acquirers

Authors

  • Chittima Silberzahn, EMLYON Business School

Abstract: Literature on CEO career horizon suggests that except for family firms, near-retirement CEOs’ behaviors are normative and characterized by diminishing firms’ long-term engagements. We argue that this may not always be true because the few years before retirement are the last period when CEOs still have substantial impact on the last firm to which their identity, reputation, and wealth attach. Thus, what they most value and wish to leave behind should affect their decision-making. What they value, however, should be influenced by their characteristics and social contexts through cognitive processes. We investigate this hypothesis on S&P1500 firms during 1999-2010. Our findings suggest that CEO characteristics and social contexts can alter the positive relationship between CEO career horizon and long-term investments predicted by current literature.

Title: The Impact of Psychological Differences on Aspiration Adaptation and Innovative Strategies

Authors

  • Daniela Blettner, Simon Fraser University
  • Songcui Hu, University of Arizona
  • Richard Bettis, University of North Carolina-Chapel Hill

Abstract: Organizations adapt their aspirations based on feedback. If performance feedback falls below aspirations, organizations take greater risks and are more likely to engage in innovative strategies than if performance feedback is above aspirations. While such systematic differences above and below aspirations have been recognized, individual psychological differences in feedback interpretation have not been addressed in this literature. This is surprising, because individual psychological differences can explain heterogeneity in firm behavior. To address this promising area within adaptive aspirations and feedback theory, we focus on one particular process in aspiration adaptation: Regulatory focus (i.e., promotion and prevention focus). Our results from a longitudinal study of the worldwide publishing industry show how regulatory focus influences aspiration adaptation and innovative strategies.

All Sessions in Track P...

Sun: 08:00 – 09:15
Session 281: Models and Evidence in Behavioral Strategy
Sun: 09:45 – 11:00
Session 280: Neuro-science in Behavioral Strategy Research
Sun: 11:15 – 12:30
Session 282: The Origins and Future Development of Behavioral Strategy
Sun: 16:15 – 17:30
Session 77: Organization Level Cognition
Sun: 17:45 – 00:00
Session 325: Behavioral Strategy Business Meeting
Mon: 08:00 – 09:15
Session 72: External Influences: Audiences and Media
Session 83: Behavioral Strategy at the Firm Level
Mon: 11:15 – 12:30
Session 68: Behavioral Theory & Learning
Mon: 13:45 – 15:00
Session 69: Problematizing Categories: Performance, Audiences, Innovation and Status
Session 169: The Role of Attention in Organizational Processes (Evaluation, Promotion, Innovation and Growth)
Mon: 16:45 – 18:00
Session 85: Governance
Tue: 08:00 – 09:15
Session 80: Business Models and Innovation
Tue: 11:00 – 12:15
Session 70: CEO Characteristics: Microfoundations of Behavioral Strategy
Tue: 14:15 – 15:30
Session 71: Upper Echelons and Individual Decision Makers
Session 75: Organizational identity
Tue: 15:45 – 17:00
Session 79: Cognition, Identity and Search
Tue: 17:30 – 18:45
Session 84: Competitors and Other External Forces

All Sessions in Track X...

Sun: 08:00 – 09:15
Session 74: Open Strategy Workshops: Lessons Learned from Practising Strategizing
Sun: 09:45 – 11:00
Session 29: The Elephant in the Room: How public policy and institutions help drive innovation, entrepreneurship, and firm performance
Session 76: The evolution of the strategy as a profession and the field of strategy
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Session 38: Big Game Hunting: Accessing and Interacting with Senior Executives for Empirical Research
Sun: 13:45 – 14:30
Session 307: Lifetime Achievement Award Recipient
Sun: 14:45 – 15:45
Session 7: New Frontiers in Technologies, Fields, and Business Models: Implications for Academic and Practice Knowledge Creation
Sun: 16:15 – 17:30
Session 61: The Institutional Level of Strategizing Activities
Session 261: Knowledge Creation and Sharing in Virtual Communities
Mon: 08:00 – 09:15
Session 72: External Influences: Audiences and Media
Session 126: Entry Mode & Cross-Border Acquisitions
Session 140: New Perspectives on the Outside Director Selection Process
Mon: 09:45 – 11:00
Session 8: Elevating our Understanding of Organizational Performance: Bridging the Frontiers of Business and Corporate Strategies
Mon: 11:15 – 12:30
Session 149: Management and Coordination of Multinationals
Session 220: Perspectives on CEO Compensation
Mon: 13:45 – 15:00
Session 16: Human Capital and Innovation
Session 37: Political Ties: Knots or Bows?
Session 63: Political and Material Aspects of Strategy Making
Session 97: Accelerators, corporate VCs and new venture creation
Session 258: Explainng CSR: External Factors
Mon: 15:15 – 16:15
Session 227: Mergers, Acquisitions and Divestitures: Reconfiguring Resource Bases for Value Creation and Growth
Session 308: Strategy Beyond the Firm: Creating and Capturing Value from External Resources
Session 310: When the Smoke Clears: The Emergence of the Cannabis Industry
Session 311: Theory Fragmentation in Strategic Management?
Session 312: Climate Change: Why and How Should Strategic Management Care?
Mon: 16:45 – 18:00
Session 42: The Word is Out! Stakeholder Responses to Public Signals of Firms' Behaviors
Session 112: Acquisitions - Before the Deal
Tue: 08:00 – 09:15
Session 309: Looking Good and Sounding Better: Impression Management by CEOs
Tue: 09:45 – 10:45
Session 9: Whatever Happened to Theory in Strategic Management?
Tue: 11:00 – 12:15
Session 70: CEO Characteristics: Microfoundations of Behavioral Strategy
Tue: 14:15 – 15:30
Session 116: Acquisitions - After the Deal
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 219: A Tough Crowd: Critical Examinations by Owners and Stakeholders
Session 262: Pioneering Knowledge
Tue: 17:30 – 18:45
Session 144: Board Structure: What Works Best?
Session 208: Internationalization Strategies and Performance


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