Abstract
This study investigates the influence of CEO organizational identification on strategic change. We argue that CEOs with strong organizational identification are less willing to initiate strategic change because strong identification with their firms leads them to focus on ensuring continuity. In addition, the negative influence of CEO organizational identification on strategic change is stronger when the firm¡¯s performance falls short of aspirations and the firm is facing a dynamic environment. Using a sample of 1,285 CEOs, we find empirical support for our arguments. Findings from this study indicate that strong executive organizational identification can give rise to strategic rigidity, which can potentially harm the interests of a firm.
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