The Impact of CEO Characteristics on Organizational Culture and on the Silo Effect

Abstract

Purpose -The purpose of the study is to understand the impact of psychological and observable CEO characteristics on organizational culture and silos.Design/methodology/approach -A questionnaire was built using information collected during the literature review stage and emailed to the firm decision-makers. Using survey data from 185 small-to-medium-sized firms from two sectorsaccommodation and food, beverage, and tobacco -a structural equation model was applied to determine if the theoretical model could be confirmed or not, and the partial least squares technique was used to check if certain relationships exist.Findings -General support was found for a theoretical model in which CEO personality traits, particularly conscientiousness, openness to experience, and extraversion, influence both organizational culture and silos, and observable variables such as age and management tenure influence the ability of the firm to develop internal coordination competences, thus inhibiting the appearance of silos.Originality/value -The main contribution to the knowledge lies in the combination of different theoretical frameworks and the empirical approach used to test the importance of CEO characteristics in organizations and in their ability to develop cooperation networks.

Impact of CEO attributes on corporate reputation, financial performance, and corporate sustainable growth: evidence from India

“…The chronological age of the CEO reflects his/her life experience and history (Mouta and Meneses 2021), and is believed to play a crucial role in the firm's decision-making process, and thus in its performance (Tarus and Aime 2014). The existing literature has highlighted two schools of thought concerning the effect of a CEO's age on corporate performance.…”