Abstract
The creative thinking and ability of top management team (TMT) members is important in coping with rapid changes in the external environment and improving the competitive advantage of an organization. This research focuses on the CEO–TMT interface to explain how CEOs influence TMT characteristics, which in turn affects TMT outcomes. Based on social learning theory, this study examines the associations among CEO ethical leadership, TMT cohesion, and TMT creativity in a Chinese context using a total of 91 TMTs. To verify the reliability and validity of the constructs, a series of confirmatory factor analyses (CFAs) were run. The results showed that the hypothetical model captured distinct constructs and fits the data well. A multistep regression method was used to test hypotheses. The results indicated that: (a) CEO ethical leadership has a positive effect on TMT creativity; (b) TMT cohesion plays a mediating role in the relationship between CEO ethical leadership and TMT creativity; and (c) power distance plays a moderating role in the relationship between CEO ethical leadership and TMT creativity. The greater the power distance, the weaker the positive relationship between CEO ethical leadership and TMT creativity. This study demonstrates the value of CEO ethical leadership and advocates the importance of establishing team cohesion and building a psychologically safe environment to motivate top managers within an organization to share information and knowledge to improve creativity.
Highlights
In the knowledge economy, creativity plays a key role in organizational development (Shin et al, 2012; Gong, 2018)
According to social learning theory, individuals can learn how to behave properly by Chief executive officer (CEO) Ethical Leadership and top management team (TMT) Creativity observing the behaviors of role models (Bandura and Walters, 1977)
After adding TMT cohesion to the regression equation, the direct effect from CEO ethical leadership to TMT creativity decreased but remained significant (M6, β = 0.48, p < 0.001). These findings show that TMT cohesion partially mediates the relationship between CEO ethical leadership and TMT creativity
Summary
Creativity plays a key role in organizational development (Shin et al, 2012; Gong, 2018). As the decision maker of an organization, the top management team (TMT) is important human capital within the organization and a core group that affects the strategic choices and business performance of the organization (Brown et al, 2005; Hoogh and Hartog, 2008; Tu and Lu, 2013; Tang et al, 2019). Chief executive officer (CEO) leadership is important in promoting TMT creativity (Tang et al, 2019). According to social learning theory, individuals can learn how to behave properly by CEO Ethical Leadership and TMT Creativity observing the behaviors of role models (Bandura and Walters, 1977). Just as Bandura (1986, p. 207) proclaimed, high standing in a “prestige hierarchy” and the ability to control rewards both contribute to modeling effectiveness
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