Research Notes and Commentaries
The CEO Performance Effect: Statistical Issues and a Complex Fit Perspective
Article first published online: 15 DEC 2011
Copyright © 2011 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 33, Issue 8, pages 986–999, August 2012
How to Cite
Blettner, D. P., Chaddad, F. R. and Bettis, R. A. (2012), The CEO Performance Effect: Statistical Issues and a Complex Fit Perspective. Strat. Mgmt. J., 33: 986–999. doi: 10.1002/smj.1949
- Issue published online: 13 JUN 2012
- Article first published online: 15 DEC 2011
- Accepted manuscript online: 5 DEC 2011 11:30AM EST
- Manuscript Revised: 30 NOV 2011
- Manuscript Received: 7 OCT 2008
How CEOs affect strategy and performance is important to strategic management research. We show that sophisticated statistical analysis alone is problematic for establishing the magnitude and causes of CEO impact on performance. We discuss three problem areas that substantially distort the measurement and sources of a CEO performance effect: (1) the nature of performance time series, (2) confounding and (3) the discovery of many interactions associated with the CEO performance effect. We show that the aggregate of empirical research implies complex interdependency as the driver of the CEO performance effect. This suggests a ‘fit’ model requiring new research approaches. Copyright © 2011 John Wiley & Sons, Ltd.