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1 results

  • CEO Leadership, Strategic Decision Comprehensiveness, and Firm Performance: The Moderating Role of TMT Cognitive Conflict

  • Yaqun Yi, Yu Chen, Xiaoming He
  • Journal:
    Management and Organization Review / Volume 18 / Issue 1 / February 2022
    Published online by Cambridge University Press:
    21 June 2021, pp. 131-166

  • Managers make comprehensive strategic decisions to cope with environmental challenges. Questions remain regarding how different types of leadership styles influence top management team (TMT) strategic decision comprehensiveness (SDC) and firm performance. This study explores the impact of two different CEO leadership styles on TMT SDC and subsequent firm performance, considering the moderating role of TMT cognitive conflict. Based on data from 357 questionnaires of 126 firms in China, we found that 1) CEO empowering leadership positively affects SDC; 2) CEO directive leadership generates an inverted U-shaped effect on SDC; 3) the effect of SDC on firm performance is positive; and 4) TMT cognitive conflict weakens the relationship between CEO empowering leadership and SDC. This study takes a systematic approach by integrating CEO-TMT dynamics into SDC, which in turn affects firm performance, and thus offers a holistic view of how upper echelons influence firm performance.