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    Janus-Faced Factional Divides – Can Independence-Based Faultlines Foster Board Effectiveness Following Corporate Failures?
    In this study, we endeavor to reveal the Janus face of boardroom factional faultlines. Contrary to conventional wisdom which stresses the detrimental effects of factional faultlines in creating schisms, distrust, and conflicts among members of work teams, our study shows that when the factional faultlines on the board are configured along the independent vs. non-independent statuses of directors, they are conducive to enhanced board decision making effectiveness in the face of corporate failures through reversing the marginalized positions of independent directors, heightening their motivation to fulfil the monitoring authority, and reducing the likelihood of collusion between independent and non-independent directors. Adopting a quasi-experimental research design with matched samples of listed Chinese firms, this study features how the presence of factional faultlines between independent and non-independent directors shapes boardroom dynamics and subsequent decision making outcomes in the contexts of two distinct types of corporate failures – i.e., competence failures and integrity failures. We find that in the wake of corporate failures, independence-based factional faultlines tend to reduce the level of dissent in board meetings. We also note that the influence of such factional faultlines on the board’s engagement in disciplinary actions and firm’s turnaround is conditional on the nature of the corporate failure. Our findings contribute to advancing the knowledge in board independence, factional faultlines, and leadership in crisis.
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    Opportunity in disguise? Examining career paths of female directors following glass cliff assignments
    The glass cliff phenomenon, which denotes the greater tendency of women than men to be placed on precarious leadership positions, has attracted considerable scholarly interest since the notion’s inception two decades ago. By framing women-held upper echelon roles in crisis-stricken firms as “cliff”, the glass cliff research hitherto has concentrated on uncovering the downsides – i.e., biases and detrimental career implications embodied in such positions. This paper breaks away from the tradition to explore the potential upsides of glass cliff assignments. Based on a large-scale matched sample of Chinese listed firms over the 2012-2022 period, our analyses reveal that neither is a crisis-stricken firm more likely to engage in preferential selection of women in leadership positions, nor does such a position cause significant damages to a woman leader’s future advancement in the director labor market, manifested as courtesy stigma and/or declined employability. On the contrary, we proffer evidence that a precarious upper echelon position tends to accelerate one’s ascension to the acme of the corporate power pyramid, namely a CEO or board chair role, a tendency which applies to both men and women and robust in different crisis configurations. In addition, our analyses disentangle the crisis effect from the gender effect in glass cliff assignments. That is, the ex-post career implications of a glass cliff appointment are rather derived from the character and competences signaled by one’s leadership experience in crisis rather than the gender of the leader. With these findings, this study contributes to bringing more comprehensive and nuanced understandings of the glass cliff phenomenon and adds to the research on the career progression of female leaders.
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    Opportunity in Disguise? Examining Career Paths of Female Directors Following Glass Cliff Assignments
    (Academy of Management, 2024-07-09) ; ;
    The glass cliff phenomenon, which denotes the greater tendency of women than men to be placed on precarious leadership positions, has attracted huge scholarly interest since the notion’s inception. By framing women-held upper echelons roles as “cliff”, the glass cliff scholarship thus far has concentrated on uncovering how systematic biases towards women extend into higher-end labor markets, manifested as the “think crisis, think female” association in director appointment process and a greater exposure to courtesy stigma in consequence to their affiliation with crisis-stricken firms. This paper adopts a different angle to explore the potential upsides of glass cliff assignments. Based on a large-scale matched sample of Chinese listed firms, our analyses reveal that 1) preferential selection of women to top corporate ranks is not universal but rather contingent on the configurations of crisis situations and that 2) directorships in distressed firms can increase female directors’ future employability in the director labor market. Our findings contribute to the glass cliff literature in two ways. First, we provide more nuanced understandings to the glass cliff phenomenon by clarifying the boundary conditions. Second, by introducing insights from research on ex post settling up in director labor market and on double standards of competence, we locate long-term opportunities embodied in precarious leadership assignments.
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    Growing the Business in the Regions: TMT Member's Regional Responsibility and Regional Performance
    Studies find that some multinational enterprises (MNEs) pursue business opportunities globally while others focus on certain regions. Firm-level factors such as technological advantages and complexity management may contribute to this difference, but the results are not conclusive. This paper argues that MNE top executives’ regional responsibilities and successful role enactment also influence the development of MNE’s footprint in different regions. Our analysis with data from international automotive companies’ regional sales development from 2003 to 2019 showed that top management team (TMT) member’s regional responsibility positively contributes to development of regional performance when the executive does not have parallel corporate functional responsibilities. Meanwhile, regional economic growth and the leadership from a foreign CEO strengthen this positive effect of regional heads in TMT. We discuss how our findings enrich the understanding of MNE geographic scope and contribute to the literature of regional management as well as foreign executives.
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    CEO Intra-personal Experience Diversity and Strategic Change: Toward a Nuanced Understanding
    (Academy of Management Meeting, 2021-08)
    Mueller, Philipp
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    Are new CEOs with diverse career experience more likely to promote strategic change early after their appointment? We attempt to address this question by integrating seemingly opposing predictions in the managerial cognition literature. We argue that new CEOs with high and low levels of intra-personal experience diversity will promote higher strategic change early after taking charge – compared to those at relatively moderate levels. Analyzing 115 CEO successions, we find support for the theorized U-shaped relationship between intra-personal CEO experience diversity and strategic change. Furthermore, our results suggest that this relationship is influenced by post-CEO-succession TMT turnover. We contribute to the literature on strategic change by adding a more nuanced perspective to the emerging research on new CEO career experience diversity, and its effects on corporate strategy.
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    Internationalization in the Digital Age:
    The Role Of Cultural Distance And
    Industry Dynamism
    (Academy of Management Conference, 2020-08-09) ;
    This study examines the impact of information and communication technologies (ICT) on the degree of internationalization by focusing on multinational enterprises (MNEs). We argue that ICT helps MNEs to reduce internal and external transaction costs in an international context, resulting in a higher degree of internationalization. We further argue that the positive impact becomes more pronounced under the the condition of high cultural distance and a high level of industry dynamism. Our empirical results are strongly congruent with our hypotheses. We used a panel dataset from four major European countries, consisting of 567 firm year observations from 2011, 2013, and 2015. Overall, our study contributes to the emerging research stream about internationalization in the digital age. It shows that ICT acts as a filter for uncertainty, both ex-post and ex-ante, in the internationalization process.
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