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CEO self-discipline in power use: A key moderator for the effect of CEO power

Jianyun Tang

European Management Journal, 2021, vol. 39, issue 5, 633-644

Abstract: The effect of CEO power depends ultimately on how it is used (i.e., a CEO’s approach to power use), which may vary from one CEO to another. Notwithstanding extensive research on the effect of CEO power on organizational outcomes, researchers have thus far paid very limited attention to how the effect depends on individual differences. In this study I propose a new construct of CEO self-discipline in power use—defined as a CEO’s appeared conformance to the prescribed leadership norms (in particular, norms regarding how leaders should use their power)—and examine how it moderates the effect of CEO power. With a longitudinal dataset from the U.S. computer hardware and software industries, I found that CEO self-discipline in power use weakened the positive effect of CEO power on performance extremeness and improved the effect of CEO power on firm performance.

Keywords: CEO power; CEO self-discipline in power use; Strategic decision making; Firm performance; Performance extremeness (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eurman:v:39:y:2021:i:5:p:633-644

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DOI: 10.1016/j.emj.2021.01.007

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