The Chief Strategy Officer: Characteristics, Contingency, and Firm Performance

In this study, we complement research on top management teams (TMTs) with an analysis of the chief strategy officer (CSO), an increasingly important position in many large firms. Developing a conceptual model of CSO characteristics, contingency, and performance implications, we suggest that CSO presence results in superior firm performance. Further, we argue that this relationship is positively moderated by a firm's diversification degree, as well as by a CSO's firm-specific experience, strategy consulting experience, and general management education. Results from a large sample of S&P 500 firms do not confirm that CSO presence is equally beneficial for all firms, however, that the benefits of CSO presence increase as firms diversify their portfolios. The findings also reveal that firm-specific experience of a CSO may enhance the potential impact on firm performance. Our study contributes to the emerging research on CSOs and to a managerial perspective on firm diversification.