Seeking pleasure or avoiding pain: Influence of CEO regulatory focus on firms' advertising, R&D, and marketing controversies

Saim Kashmiri, Prachi Gala and Cameron Duncan Nicol

Journal of Business Research, 2019, vol. 105, issue C, 227-242

Abstract: This research examines the influence of CEOs' regulatory focus on firms' strategic marketing behavior. The authors propose that the degree of CEOs' promotion focus relative to their prevention focus positively impacts firms' advertising and R&D intensities. However, the authors also propose a dark side of predominantly promotion-focused CEOs: a higher likelihood of firms getting involved in marketing controversies. The impact of CEO regulatory focus on these outcomes is proposed to be magnified when CEOs have high power, when stock options comprise a small proportion of CEOs' compensation, and when firms operate in highly dynamic environments. Findings based on observing a sample of publicly listed U.S. firms between 2006 and 2010 provide considerable support for the authors' hypotheses. These findings have important implications for managers, board members, investors, and researchers interested in the determinants of and mechanisms to prevent marketing myopia and marketing controversies.

Keywords: Chief executive officer; Regulatory focus; Advertising; R&D; Marketing controversy (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296319304928
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:105:y:2019:i:c:p:227-242

DOI: 10.1016/j.jbusres.2019.08.022

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().