Review of Contemporary Business Research

Wearing Two Hats: CEO Duality, Risk, Innovation, and Firm Performance in the IT Industry
Lakshmi Goel, Pieter de Jong

Abstract
The relationship between the role of the CEO, and corporate risk, innovation, and performance, has been explored in prior literature. However, a majority of the research takes an agency view of the role of the CEO, considering CEO compensation as a major factor in organizational outcomes. Empiric results have been mixed, and sometimes, contradictory. The role of the CEO in relation to firm outcomes is especially complex in the information technology industry. We propose a model rooted in stewardship theory, which adopts a behavioral rather than an economic view of the CEO, to explain how CEOduality is linked to corporate risk, innovation, and firm performance. Results from testing our model from an archival sample of 377 companies with 2015 firm-year observations support each of our hypotheses.

Full Text: PDF     DOI: 10.15640/rcbr.v6n2a3