2011
DOI: 10.1002/smj.1949
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The CEO Performance Effect: Statistical Issues and a Complex Fit Perspective

Abstract: How CEOs affect strategy and performance is important to strategic management research. We show that sophisticated statistical analysis alone is problematic for establishing the magnitude and causes of CEO impact on performance. We discuss three problem areas that substantially distort the measurement and sources of a CEO performance effect: (1) the nature of performance time series, (2) confounding and (3) the discovery of many interactions associated with the CEO performance effect. We show that the aggregat… Show more

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Cited by 46 publications
(54 citation statements)
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References 59 publications
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“…To estimate leaders' effects on organizational performance in an exact way within real-world settings is known to be problematic (Antonakis et al 2010;Blettner et al 2012). Nevertheless, there is a growing research literature that claims to have captured leaders' influence on performance.…”
Section: Expert Leaders and Organizational Performancementioning
confidence: 97%
“…To estimate leaders' effects on organizational performance in an exact way within real-world settings is known to be problematic (Antonakis et al 2010;Blettner et al 2012). Nevertheless, there is a growing research literature that claims to have captured leaders' influence on performance.…”
Section: Expert Leaders and Organizational Performancementioning
confidence: 97%
“…Thomas 1988;Finkelstein & Hambrick, 1996;Waldman & Yammarino, 1999;Mumford, Scott, Gaddis, & Strange, 2002;Bertrand & Schoar, 2003;Jones and Olken 2005;Yukl, 2008;Mackey, 2008;Goodall 2009a;Souder, Simsek & Johnson, 2012;Dezs & Ross, 2012;Nohe, Michaelis, Menges, Zhang, & Sonntag, 2013). To estimate leaders' effects in an exact way within real-world settings is known to be problematic (Antonakis, Bendahan, Jacquart, &Lalive, 2010, Blettner, Chaddad andBettis, 2012); it is not possible, outside a laboratory, to randomly assign a leader to an organization. In this area of social science, therefore, the discovery of persuasive conclusions has to rest, at least in large part, on the availability of error-free observational data and on truly consistent replication across a wide range of settings.…”
Section: Introductionmentioning
confidence: 99%
“…Second, the effect of the CEO on performance has long been studied in the strategic management and organization studies literature (for a comprehensive review see for example Blettner et al, 2012). In recent years, the contribution of brain research to strategic management research and practice has coined the term "neurostrategy" (Powell, 2011).…”
Section: Introductionmentioning
confidence: 99%