EconPapers    
Economics at your fingertips  
 

Who Lives in the C-Suite? Organizational Structure and the Division of Labor in Top Management

Maria Guadalupe (), Hongyi Li and Julie Wulf

No 17846, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper shows that top management structures in large US firms radically changed since the mid-1980s. While the number of managers reporting directly to the CEO doubled, the growth was driven primarily by functional managers rather than general managers. Using panel data on senior management positions, we explore the relationship between changes in executive team composition, firm diversification, and IT investments--which arguably alter returns to exploiting synergies through corporate-wide coordination by functional managers in headquarters. We find that the number of functional managers closer to the product ("product" functions i.e., marketing, R&D) increase as firms focus their businesses, while the number of functional managers farther from the product ("administrative" functions i.e., finance, law, HR) increase with IT investments. Finally, we show that general manager pay decreases as functional managers join the executive team suggesting a shift in activities from general to functional managers--a phenomenon we term "functional centralization."

JEL-codes: D22 J31 L2 M12 M5 (search for similar items in EconPapers)
Date: 2012-02
New Economics Papers: this item is included in nep-bec
Note: CF LS PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Published as Maria Guadalupe & Hongyi Li & Julie Wulf, 2014. "Who Lives in the C-Suite? Organizational Structure and the Division of Labor in Top Management," Management Science, vol 60(4), pages 824-844.

Downloads: (external link)
http://www.nber.org/papers/w17846.pdf (application/pdf)

Related works:
Journal Article: Who Lives in the C-Suite? Organizational Structure and the Division of Labor in Top Management (2014) Downloads
Working Paper: Who Lives in the C-Suite? Organizational Structure and the Division of Labor in Top Management (2012) Downloads
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:nbr:nberwo:17846

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w17846

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2021-05-30
Handle: RePEc:nbr:nberwo:17846