The Breadth Premium: Measuring the Firm-level Impact of CEO Career Breadth

T. Alexander Puutio

Papers from arXiv.org

Abstract: Prevailing career and education systems continue to reward early specialization and deep expertise within narrow domains. While such depth promotes efficiency, it may also limit adaptability in complex and rapidly changing environments. Building on research showing that variability in training inputs enhances learning outcomes across cognitive and behavioral domains, this study explores whether the same principle applies to executive performance. These early findings suggest that leadership breadth, defined as experience spanning multiple functions, disciplines, and sectors, is positively associated with firm-level performance. While the dataset remains under validation, the pattern observed supports the emerging view that as specialization deepens, the marginal value of lateral insight rises. Breadth, in this light, functions as a form of adaptive capital; it enhances leaders' capacity for integrative reasoning, organizational translation, and strategic flexibility in uncertain environments.

Date: 2025-10, Revised 2026-07
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