Everything Under My Control: CEO Characteristics and the Evaluation of Middle Manager Performance in Small and Medium-Sized Firms

Nora Haas and Gerhard Speckbacher ()
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Nora Haas: WU Vienna University of Economics and Business
Gerhard Speckbacher: WU Vienna University of Economics and Business

Schmalenbach Business Review, 2017, vol. 18, issue 2, No 1, 109-128

Abstract: Abstract Studies of small and medium-sized enterprises have provided evidence that CEOs of such firms can have a dominating influence on firm activities. Drawing on upper echelons theory, we analyze the influence of CEO personality (CEO internal locus of control), CEO ownership and CEO education on the evaluation of middle manager performance. In line with our expectations, we find evidence for a direct effect of CEO ownership (negative) and CEO education (positive) on the use of objective performance evaluations and for a direct effect of the CEO’s internal locus of control on the use of subjective performance evaluations. Moreover, we provide evidence for a moderating role of both CEO ownership and education with respect to the influence of the CEO’s locus of control on the use of subjective evaluations. We use a sample of 247 small and medium-sized manufacturing firms to test our hypotheses.

Keywords: Small and medium-sized Enterprises; CEO personality; Performance evaluations (search for similar items in EconPapers)
JEL-codes: M12 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s41464-017-0027-x

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