Ceos' cognitive maps and the scope of the organization

In this paper, CEOs are considered as ‘cognizers’ charged with integrating views in the top management team; a role which should require high cognitive complexity especially in diversified multinational corporations. A methodology for studying top managers' cognitive complexity is described and then applied to a sample of 26 CEOs. The CEOs' cognitive maps of the structure and of the dynamics of their industry are analyzed in terms of their degree of complexity, in relation to the breadth of the business portfolio of the firm, its geographic scope and the links the firm has with foreign parents. The results of this exploratory test generally confirm the principle of requisite cognitive complexity, and reveal a new set of more precise hypotheses linking particular dimensions of the scope of the firm with particular dimensions of CEOs' cognitive complexity.     

International experience in the executive suite: the path to prosperity?

Attention is increasingly focused on the potential individual career and firm‐level benefits of international experience for upper level executives. This research examines the relationships between CEO international experience, CEO tenure, firm internationalization, succession events, and corporate financial performance. Results indicate a significant interactive effect between CEO tenure and outside succession on CEO international experience. In addition to a relationship with CEO international experience, there are two additional interactive effects in the examination of corporate financial performance: (1) CEO international experience and the degree of firm internationalization, and (2) CEO international experience and CEO succession. These interactive effects are evident in accounting and market indicators of corporate financial performance. Copyright © 2000 John Wiley & Sons, Ltd.     

FORM OF CONTROL: A CRITICAL DETERMINANT OF ACQUISITION PERFORMANCE AND CEO REWARDS

Based on two research streams, we investigate whether acquiring firms’ form of control might be associated differently with CEO rewards or excess returns. We theoretically reason that in manager-controlled corporations acquisitions may be detrimental to the interests of shareholders and CEO rewards might be based on nonperformance criteria. In owner-manager-controlled and owner-controlled firms acquisitions may benefit the stockholders. While CEO rewards of owner-controlled firms may be based on performance criteria, however, executive rewards of owner-manager-controlled firms may be based on both performance and nonperformance factors. The findings indicate that for manager-controlled firms acquisition announcements result in negative excess returns to shareholders. For owner-controlled and owner-manager-controlled firms such announcements result in positive excess returns. The findings also suggest that increases in corporate size due to acquisitions are significantly and positively associated with CEO rewards of manager-controlled and owner-manager-controlled firms. For owner-controlled firms, excess returns are significantly and positively associated with CEO rewards. © 1997 by John Wiley & Sons, Ltd.     

Chief executive scanning emphases,environmental dynamism,and manufacturing firm performance

Chief executives must allocate their scarce time for scanning efforts among relevant domains of their firms' external environment and their firms' internal circumstances. We argue that high‐performing CEOs vary their relative scanning emphases on different domains according to the level of dynamism they perceive in their external environments. The concepts of dominant logic and sector importance were used to develop predictions about which external domains and which internal domains should receive relatively more or less scanning emphasis in external environments that, overall, are more dynamic or more stable. A field survey of 105 single‐business manufacturing firms evaluated CEOs' scanning emphases and firm performance. Results indicated that, for dynamic external environments, relatively more CEO attention to the task sectors of the external environment and to innovation‐related internal functions was associated with high performance. In stable external environments, however, simultaneously increased scanning of the general sectors in the external environment and efficiency‐related internal functions produced higher performance. These relationships were strongest between relative scanning emphases among domains and sales growth. We discuss the implications of these results for researchers and practitioners. Copyright © 2003 John Wiley & Sons, Ltd.     

How does CEO tenure matter? The mediating role of firm‐employee and firm‐customer relationships

While the direct influence of CEO tenure on firm performance has been examined in the strategy literature, the underlying channels of influence have remained largely unexplored. This article draws upon the career seasons paradigm, learning perspectives, and marketing literature to examine whether firm‐employee and firm‐customer relationships are the pathways through which CEO tenure influences firm performance. Results from the analysis of a large data set reveal that: (1) CEO tenure has a positive and linear association with firm‐employee relationship strength but an inverted U‐shaped association with firm‐customer relationship strength; (2) industry uncertainty intensifies these associations; and (3) firm‐employee and firm‐customer relationship strength mediate the effects of CEO tenure on firm performance. These findings have implications for a more balanced and nuanced view of CEO tenure. Copyright © 2013 John Wiley & Sons, Ltd.     

Interpartner Fit and Its Performance Implications: A Four-Case Study of U.S.-China Joint Ventures

In previous research on international joint ventures, a commonly accepted conceptualization and operationalization of interpartner fit is lacking. As a result, empirical studies have either failed to confirm theoretical predictions or produced inconsistent findings that are difficult to reconcile. Using a multiple-case method, this study developed a model in which interpartner fit is conceptualized as a multidimensional construct consisting of the compatibility between the partners strategic objectives, contribution and joint management of critical resources, consensus on the venture's operating culture and strategy, and structure of relative bargaining power and control over the venture's operation. The longitudinal case studies demonstrated the relationship between interpartner fit and joint venture performance and also revealed the rich dynamics and changes in interpartner fit'misfit over time.