CEO Empowering Leadership and Corporate Entrepreneurship: The Roles of TMT Information Elaboration and Environmental Dynamism

Abstract

In this paper we investigate the relationship between chief executive officer (CEO) empowering leadership and corporate entrepreneurship. In addition, the mediating role of information elaboration in top management teams (TMTs) and the moderating role of environmental dynamism are examined. Drawing on the information exchange/sharing perspective, we hypothesize that CEO empowering leadership has a positive effect on corporate entrepreneurship, and TMT information elaboration mediates the relationship above. Furthermore, we find that environmental dynamism positively moderates the relationship between empowering leadership and information elaboration, and negatively moderates the relationship between information elaboration and corporate entrepreneurship. Data from a sample of Chinese firms provide empirical evidence in support of these hypotheses.

Employees' entrepreneurial behavior within their organizations: empowering leadership and employees' resources help

“…One of the key variables in subordinates' entrepreneurial behavior is their empowerment and we propose that empowering leadership can induce employees' entrepreneurial behavior. Previous research showed that chief executive officer (CEO) empowering leadership had a positive effect on corporate-level through information elaboration in top management teams (Li et al. , 2021).…”

Turning visions into results: unraveling the distinctive paths of leading with vision and autonomy to goal achievement

“…The ongoing augmentation of workplace demands and the accelerating cadence of technological innovations are mutually reinforcing. In a fast-changing knowledge economy that breeds disruptive technologies and business models (Li et al, 2021), an agile workforce drives organizations' competitiveness. Organizations that aim to increase their agility can benefit from allowing their employees the flexibility to make decisions on their own, effectively granting them competencies that are typically reserved for leaders.…”

“…This is an important contribution because both leadership styles have been conceptualized in overlapping ways in the past, resulting in redundancy between both repertoires of behaviors (Banks et al, 2016;Van Knippenberg and Sitkin, 2013). For example, behaviors such as communicating information about the overall organizational goals are conceptualized and assessed as empowering leader behaviors (Arnold, 2000;Amundsen and Martinsen, 2014;Li et al, 2021;Kim and Beehr, 2020), which conflates visionary and empowering leadership and thus makes it difficult to examine their distinctive effects on followers.…”

“…The ongoing augmentation of workplace demands and the accelerating cadence of technological innovations are mutually reinforcing. In a fast-changing knowledge economy that breeds disruptive technologies and business models (Li et al. , 2021), an agile workforce drives organizations' competitiveness.…”

“…, 2016; Van Knippenberg and Sitkin, 2013). For example, behaviors such as communicating information about the overall organizational goals are conceptualized and assessed as empowering leader behaviors (Arnold, 2000; Amundsen and Martinsen, 2014; Li et al. , 2021; Kim and Beehr, 2020), which conflates visionary and empowering leadership and thus makes it difficult to examine their distinctive effects on followers.…”