Top Executives Research Articles

Focusing on the advanced strategies to enhance brand loyalty in the era of digital marketing.

This paper reflects upon advanced methods for brand loyalty in a world dominated by digital marketing. The motive of the study is trying to fill the gap that exists with regard to digital marketing, optimal strategies that can be used to achieve brand loyalty, and the role of personalized digital experiences. The paper has a mixed-method design; the quantitative data is collected from customer questionnaires, whereas the qualitative data is obtained from the interview with managers, policymakers, technology experts, and top executives. The results indicate that digital marketing significantly enhances brand loyalty, as evidenced by 60% of participants agreeing that digital interactions increase their brand loyalty, and 70% appreciating personalized digital experiences. Reliability analysis showed Cronbach’s alpha values of 0.726 to 0.876 across different scales, confirming the internal consistency of the data. It shows that digital marketing is one of the most fundamental ways in which brand loyalty can be achieved through ever-personalized and engaging customer experiences. The most pertinent at this point is that such experiences are the heart and soul of customer loyalty; they not only meet customer expectations but also set a bond between the customers and the brand, either emotionally or psychologically. Some of the challenges that it accrues are increasing data privacy issues and the need to continuously adapt to ever-changing technology. Still, the opportunities far outweigh the serious challenges; the future is, therefore, bright for brands that will successfully adopt this measure.

The impact of marketing leaders on firm’s market orientation: evidence from a small emerging economy

PurposeThis study seeks to investigate the impact of marketing leaders in (in terms of marketing education, experience and knowledge/skills) generating firm capabilities (market orientation) necessary to compete in a small emerging economy.Design/methodology/approachA survey was conducted with top marketing executives in Macau. Questionnaires were disturbed to and completed online by 125 top marketing executives from various industrial sectors in Macau. Structural equation modeling was employed to test the hypotheses.FindingsResults suggest that top marketing executives with marketing-specific education and functional marketing skills allow them to foster an overall market orientation of the firm. Marketing experience as well as other types of skills, however, are found to be unrelated to market orientation. Results also show a positive relationship between market orientation and firm performance.Originality/valueThis study seeks to address the void in the current literature which focus mainly on the mere presence of top marketing executive in generating favorable outcome with insufficient attention given to how this persona can play a key role in firms. While there is empirical evidence in the developed markets, this study aims to explicate the important role of marketing leaders in a small economy which is understudied. By showing that marketing leaders can actualize their benefits through the cultivation of market orientation of firms, this study also strive to address the call for more research in investigating the antecedents of market orientation.

How and Why Top Executives Influence Innovation: A Review of Mechanisms and a Research Agenda

Scholars have shown increasing interest in the relationship between top executives and firm innovation. However, no systematic effort has been made to integrate or synthesize the theoretical mechanisms in this literature. Without such an integrative framework, this field remains fragmented, offering limited guidance for future research. In this study, we integrate and synthesize findings from over 100 articles on the effects of top executives on innovation. Our review identifies four major categories of theoretical mechanisms (Motivations, Cognitions, Leadership Behaviors, and Influences), eleven sub-categories of mechanisms, and three prominent causal chains in the literature. Our review also examines how these mechanisms align with those in the broader innovation literature, highlighting numerous opportunities for future research. These include deeper integration within and across four categories of mechanisms in strategic leadership literature, drawing insights from strategic leadership research to better inform future research on organizational motivations for innovation, examining top executives’ economic motivations for innovation, and elucidating how strategic leaders shape absorptive and economic capacities to innovate.

Rx for Legal Troubles: CEO Medical Degree and Corporate Litigation

ABSTRACTResearch Question/IssueThis study examines the relationship between CEOs' medical degrees (MDs) and corporate litigations targeting US pharmaceutical firms.Research Findings/InsightsCEOs with a medical background are significantly more susceptible to securities class actions, while facing fewer patent lawsuits. The results indicate that the lack of management skills among MD CEOs comes at the cost of firm value. After lawsuit announcements, companies led by MD CEOs experience a significantly negative effect on their stock prices. Markets show no tolerance for failures by MD CEOs, as evidenced by the impact of clinical trial disappointments.Theoretical/Academic ImplicationsThe findings contribute to our understanding of the impact of CEOs' medical backgrounds on corporate litigation outcomes. The results suggest that when examining how a CEO's qualifications affect legal issues and the value of a company, we should consider the unique context of having an MD.Practitioner/Policy ImplicationsPractically, the study implies that firms should carefully consider the balance of managerial and medical expertise in CEO appointments, recognizing the potential legal and financial consequences. Policymakers might see it as beneficial to encourage a mix of different skills among top executives. This could make pharmaceutical companies more resilient in the face of legal issues, which, in turn, helps maintain confidence among investors.

Motherhood enrichment in leadership: exploring top female executives in Spain

PurposeExisting research suggests motherhood hinders women’s advancement to top management roles, but its specific influence on women who have achieved senior leadership is unexplored.Design/methodology/approachThis research uses a qualitative approach based on 34 in-depth, semi-structured interviews with Spanish female executives who hold board positions or have the potential to become board members in male-dominated industries.FindingsThis study identifies motherhood as a key driver in career growth, countering the view of it as a barrier. Narratives from female leaders revealed that motherhood did not impede their careers, challenging the “motherhood penalty” notion. We introduce the concept of “motherhood enrichment,” highlighting its positive impact on leadership skills and career progression in top executive roles.Practical implicationsThese findings can challenge prejudices about the negative impact of motherhood on women’s careers and support policies promoting work–life balance and family-friendly cultures in organizations.Originality/valueThis study suggests the “motherhood-work enrichment” (MWE) concept in leadership, recognizing motherhood as a catalyst for leadership qualities and offering a preliminary theoretical model to explain MWE in the context of concurrent mother-top manager roles.

Union‐Free via Professionalism: Steps for Immediate Supervisors

From an employee's perspective, the immediate supervisor is the face of the company. Upper management can play a role, as can the top executive. However, day in and day out, the immediate supervisor is the worker's “boss.” Therefore, it is essential that the immediate supervisor conduct themselves in a manner that is consistent with the desired vision and culture of a company. When it comes to employers seeking to maintain union‐free status, that vision and culture is frequently defined in terms of professionalism. Acting in a “professional manner” can yield significant dividends in creating a work environment wherein employees regard their supervisor (and, in turn, the company) as trustworthy, competent, fair, and reliable.

How Do Elite-Educated CEOs Choose the M&A Payment Method? Evidence from Taiwan

This paper examines the influence of CEOs with elite educations on the selection of payment methods in mergers and acquisitions (M&A). Analyzing a unique hand-collected dataset of M&A announcements involving Taiwanese acquirers during 2007–2020, we find that acquirers led by elite-educated CEOs are more likely to opt for cash financing in M&A transactions, a preference that persists even after conducting robustness tests and addressing endogeneity bias. Elite-educated CEOs with a Ph.D. or Master's degree in management- or finance-related disciplines are further found to exhibit a marked preference for cash payments, particularly when their firms face greater financial constraints. These observations can be attributed to potentially lower costs of external funding and might also reflect a perception among these CEOs that their firms are undervalued, as posited by both the financing proficiency hypothesis and the overconfidence trait hypothesis. By dissecting distinct implications of these two hypotheses for M&A valuation, we finally examine and show that acquirers led by elite-educated CEOs, particularly those choosing cash for M&A financing, experience superior post-M&A stock returns and operational performance. Our conclusion thus suggests that the financial acumen derived from elite education, rather than overconfidence, predominantly influences M&A payment methods and favorably impacts subsequent valuation outcomes. Overall, this study represents a pioneering effort to shed light on the often-overlooked role of top executives' elite educational backgrounds in strategic decision-making within the context of M&A.

Gender, credentials & success: An examination of educational attainment in top management teams

In recent decades, women have made historic gains in educational attainment, now outpacing men in terms of college enrollment and degree completion. Yet, despite the ubiquity of policies and programs aimed at advancing women in work organizations, women's educational gains have not yet translated into greater representation in elite corporate roles. The current study seeks to address this puzzle by analyzing the conditions under which women's educational attainment and credentials enable them to overcome gendered barriers to entry into executive positions. Specifically, we analyze the conditions under which women's educational attainment and credentials facilitate entry into executive roles and provide access to network ties necessary for gaining entrance into male-dominated positions. To answer our research questions we analyze a unique, author-constructed dataset that includes all top executives of the S&P 500 over a 5-year period. We use ordered logistic regression to analyze both the educational attainment and educational networks of executives. Findings suggest that key differences between women and men executives' networks and credentials exist, which contribute to disparities in access to organizational leadership opportunities.

Understanding the drivers of innovative work behaviour among millennial employees in India’s IT sector: some exploratory research findings

PurposeThe study aims to develop a hierarchical model for innovative work behaviour (IWB) that can capture the complex associations among the factors contributing to IWB within the information technology (IT) sector. To accomplish this, the authors rely on an abductive approach using a graph theoretic model, often called interpretive structural modelling (ISM).Design/methodology/approachAfter conducting an in-depth literature review and using the Delphi method, the authors identified 12 factors (11 enablers and IWB as an outcome). The authors collected data through the Delphi approach by sending the questionnaire to 11 experts from academia and the IT sector who have extensive experience and knowledge relevant to the study. The authors then used the ISM method to analyse the relationships among these factors and understand their driving forces.FindingsBased on the ISM model and the Matrice d'Impacts Croisés Multiplication Appliquée à un Classement analysis, the authors have identified that inclusive leadership, proactive personality and knowledge creation ability are the variables with strong driving power but weak dependence. Conversely, IWB has strong dependence but weak driving power. These findings suggest that to foster IWB, the organisation should prioritise inclusive leadership, proactive personality and knowledge-creation ability to succeed in challenging times. The study’s findings contribute to the social exchange theory, which explains IWB in a dynamic setting. Additionally, the study helps address the significant concerns that most IT companies face during times of crisis.Practical implicationsThe study provides valuable guidance for managers and policymakers who are grappling with the challenges of improving IWB in the IT sector. This study is particularly relevant as the industry is currently navigating an economic recession and facing intense competition from other tech companies launching new products and services.Originality/valueThis research holds great significance for top executives, line managers and policymakers in the IT industry. It sheds light on the relevance and importance of various factors facilitating millennials' IWB.

CEO's early-life earthquake experience and enterprise digitization

Using Chinese CEOs' earthquake experiences in childhood as an exogenous shock, we examine how executives' early-life disaster experiences impact corporate digitization. Our results show CEOs who experienced severe earthquakes in childhood tend to be more conservative, diminishing digitization efforts. Our mechanism analysis suggests these results stem from reduced risk-taking inclinations. Robustness tests confirm the validity of our primary conclusions. Overall, our study sheds light on how top executives' early-life experiences shape strategic decisions like technology adoption, thereby enriching our understanding of personal influences on corporate decision-making.

CEO pay ratio versus financial performance in Polish public companies

In this paper, we aim to investigate the relationship between CEO pay ratio and corporate financial performance in Polish public companies. Using a sample of 259 companies listed on the Warsaw Stock Exchange, we demonstrate that links between the pay gap and accounting measures of performance differ from market ones. Our findings indicate a negative correlation between CEO pay ratio and return on sales. This implies that companies pay executives less during periods of high profitability, possibly to avoid the negative impact of excessive pay on firm performance. We also discover that the pay gap, measured by CEO pay ratio, is positively linked with Tobin’s Q and annual stock returns. A high CEO pay ratio signals strong incentives for top executives to perform, potentially leading to better strategic decisions and, consequently, higher Tobin’s Q ratios and annual stock returns.

A Framework of Employee Sustainability in the Current Business Environment

[1] The current business environment is getting more volatile, uncertain, complex and ambigious. Due to this, it has become difficult for organisations to retain their employees. However, there are some organisations that are able to sustain their employees despite all those challenges. Achieving employee sustainability indicates sustainability in the business operations. The key to creating a vibrant and sustainable organisation is to find ways to get all the employees—from the top executives to the assembly line workers—personally engaged in day-to-day corporate sustainability efforts. Employees sustainability could be influenced by their motivation to remain despite the harsh business environment. The business environment is not only harsh but its unpredictable, which affects the stability of the organization as a whole. Their level of motivation could be linked to the theory of needs which covers physiological needs, safety needs, love and belonging needs, self-esteem and self-actualization. The purpose of this study is to examine the variables that frameworks employee sustainability.

Adoption of Green Banking (Mobile Banking, Internet Banking) on Individual Level - Literature Review of Theoretical Models

In recent adoption of green banking (GB) by people and their motivations have drawn a lot of scholarly interest. This study examines the GB literature using nine adoption lenses. In recent studies it is depicted that GB is complicated & diverse procedure. Customers' social, psychological, utilitarian, personal, and behavioural components in tandem with adoption of green banking is more crucial and will ultimately lead to the desired conduct. Therefore, rather of directly influencing behaviour, top executives and banks should adopt an approach that focuses on consumers and, controlling behaviour development. The review also concludes that the state of GB research is equivocal and that there is wide variation in the methods and conceptualizations employed to comprehend the beliefs that actually shape GB activity. There is a dearth of research on the use of interventions that can help managers make wise choices and hasten the adoption process. This research helps the researchers that they can take any of the theory which can affect the adoption of green banking or they can integrate different theories to increase the number of factors.

Navigating market waves: How CEO political ideology shapes the currents of innovation-induced tourism value

The upper echelons theory postulates that the cognitive frameworks of top executives shape organizational decisions and behaviors. Based on this theory, this study contributes to the literature by analyzing the effects of the chief executive officer's (CEO) political ideology and political climate on variations in the market value of tourism firms resulting from their innovation activities. An empirical application was conducted on major U.S. hotel companies that have traded on the stock market for the last 25 years (1998–2022) and made innovation-related announcements. This application shows that, although the implementation of innovative activities positively affects a firm's market value, both the CEO's political ideology and the political climate influence the degree of change in the said market value. This study has fundamental theoretical implications for upper echelons theory by improving the understanding of how cognitive diversity derived from political ideology influences decision-making and its outcomes.

CEO pay-performance sensitivity and pay for luck and asymmetry

PurposeThis paper studies the relationship between CEO pay-performance sensitivity and CEO pay for luck as well as the asymmetric benchmarking of CEO pay in which good luck is rewarded but bad luck is not penalized symmetrically. We further explore the impact of the regulatory changes on executive compensation taking effect in the 2000s on CEO pay for luck and asymmetry.Design/methodology/approachIn this study, we examine the relationship between CEO pay-performance sensitivity and CEO pay for luck and the asymmetric benchmarking of CEO compensation. The sample consists of DJIA component companies over a 71-year period from 1950 to 2020. CEO pay-performance sensitivity is measured by both delta and Jensen-Murphy pay-performance sensitivity.FindingsWe find that an increase in CEO pay-performance sensitivity as measured by both delta and Jensen-Murphy pay-performance sensitivity leads to an increase in the degree of CEO pay for luck but tends to reduce the level of CEO pay for luck asymmetry. In addition, we find that the major pay-related regulatory changes in recent years have mitigated the degree of CEO pay for luck and pay asymmetry, in which CEO pay structure and the associated CEO pay-performance sensitivity are major mechanisms through which the regulatory changes take effect.Research limitations/implicationsOur findings provide empirical evidence supporting the argument that both optimal contracting and rent extraction should be considered as important determinants of CEO compensation.Practical implicationsWhen a firm designs the pay packages for its CEO to align CEO wealth to firm performance, CEO pay-performance sensitivity is expected to improve. However, the improved CEO PPS can also lead to an increased CEO pay for non-performance (Luck), which is an undesired outcome from the shareholder view. Therefore, a firm should thoroughly consider various advantages and disadvantages when compensating its top executives. Third, pay-related regulations have indeed achieved some intended outcomes such as the diminished pay for luck and asymmetry, but they also exacerbated the positive relationship between CEO pay-performance sensitivity and the asymmetric benchmarking of CEO pay. It seems that executive pay-related regulations cannot achieve perfect outcomes without side effects. Continuous reforms and regulations on corporate governance should be a dynamic process under various changing situations.Originality/valueThis study contributes to the literature on executive pay for luck and asymmetry in several ways. First, our study is among the few studies empirically testing the relationship between CEO pay-performance sensitivity and pay for luck and asymmetry. We find that CEO pay-performance sensitivity tends to increase the degree of CEO pay for luck but reduce the level of asymmetric benchmarking of CEO pay. These findings partly support the rent extraction theory grounded on the managerial power hypothesis and partly support the optimal contracting theory. Our findings confirm that the optimal contracting theory and the rent extraction theory are both important for explaining the practices and historical trends of CEO compensation.

Expanding the boundaries of digital orientation research: Scale development and validation

Firms keep struggling to realize the benefits of digital transformation processes. Research, therefore, proposes implementing a firm-wide organizational configuration with a digital orientation (DO) fostering digital innovation and transformation initiatives. However, exploration of DO remains somewhat constrained as existing measurement approaches are limited to secondary data. In this study, we develop a new scale to measure DO, specifically in survey-based research. Leveraging survey data from 1,488 top executives of German companies and drawing on the resource-based view, we empirically validate that our scale captures the performance-enhancing effects of DO.

Do Auditors View Off-the-Clock Misbehavior by Company Leadership as a Signal of Tone at the Top?

ABSTRACT We study off-the-clock indiscretion accusations against corporate officers and directors and examine the extent, effectiveness, and context of auditors’ response. In the year that indiscretion allegations are first publicized, auditors charge higher fees and are more likely to resign. Auditors respond to allegations against both top executives and board members. Further, reactions are strongest when allegations demonstrate a lack of individual integrity and, separately, when the audit office has previously audited other similarly accused clients. Importantly, the resulting increase in auditors’ effort partially negates the association between indiscretions and lower financial reporting quality. However, auditors are primarily reactive, rather than proactive, and their response is stronger when the accused client is less important economically. These results suggest that company leadership’s off-the-clock indiscretions are signals to auditors of poor tone at the top, but the audit response is not uniform across all clients. JEL Classifications: M41; M42; M48; G34.

The burdens and benefits of managing and engaging: a diary study approach to person-centred risk assessment of top executives and works council members

The present diary study investigates the impact of daily effort–reward imbalance (ERI), subjective stress and the cortisol awakening response (CAR) as an objective measure on work engagement of top managers and high-level works council members (N = 45) on three consecutive working days. In the scope of psychosocial risk assessment, we argue that focusing on ERI as a generalized work characteristic might be more suitable for work re-design of higher leadership positions because of their highly dynamic and unpredictable psychosocial work characteristics, while at the same time having more access to job resources. The analyses reveal that both baseline and daily ERI, as well as subjective stress, influence work engagement. Our results suggest that interventions to reduce daily levels of ERI may improve the work environment of top managers and works councils by promoting work engagement and related positive health outcomes in the scope of person-centred risk assessment.

Top Executives’ Overseas Background on Corporate Green Innovation Output: The Mediating Role of Risk Preference

Abstract This study employs balanced panel data encompassing Shanghai and Shenzhen A-share listed companies in China spanning the period from 2014 to 2021 as a research dataset, employing a mixed OLS regression model and Bootstrap methods, to investigate the influence mechanism of the overseas background and risk preference tendencies of top executives on the corporate green innovation output. The results show that the top executives’ overseas experience has a substantial influence on corporate green innovation, while top executives’ risk preference level plays a mediating role. In addition, the educational background of top executives is identified as a moderating element in this mechanism. Thus, the conclusions of this article extend prior research by identifying a new connection between top executives’ overseas backgrounds and corporate green innovation and by offering a new perspective to advance and improve the green economy.

Influence of Strategic Oriention on Diversity of Top Management and Competitive Advantage of Insurance Companies

Whereas strategy literature presents ambiguous findings on the influence of top executives on firm outcomes, there is mixed evidence that several other dynamics can come into play to enhance or downplay this relationship. This study sought to address this gap by interrogating whether strategic orientation would impact the connection between top management team diversity and competitive advantage of insurance companies based in Kenya. 54 companies targeted were subjected to a cross sectional survey and from this, 41 availed a senior executive to complete the research questionnaire presented. Data gathered was subjected to analysis with the aid of statistical software for social sciences and regression analysis applied to test hypotheses. The impact of strategic orientation was tested through the Baron and Kenny approach. The findings revealed that top manager diversity and strategic orientation affected competitive advantage despite not fully accounting for its variability. Additionally,  strategic orientation presented a statistically significant effect and proved to be a moderator in the association between top management team diversity and competitive advantage.  These findings implied that policy makers and practitioners take guidance on the importance of designing teams with diverse members that can front effective strategies for market competitiveness. The results backed the perspectives in the upper echelon and resource advantage view since it established that when teams have diverse members and calculated strategic positions, they have the capability to attain competitive advantage. The study recommended that future studies take into consideration a longitudinal approach that enables observation and analysis of relationship among variables for a considerable duration.