Executive leader networks and organizational performance: An alternative exploration of "the leader effect".
Item
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Title
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Executive leader networks and organizational performance: An alternative exploration of "the leader effect".
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Identifier
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AAI9000684
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identifier
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9000684
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Creator
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Crocitto, Madeline Marie.
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Contributor
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Adviser: Sidney I. Lirtzman
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Date
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1989
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Language
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English
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Publisher
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City University of New York.
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Subject
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Business Administration, Management | Sociology, Social Structure and Development
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Abstract
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Environmental, organizational and leader effects on midrange stock price and profitability (profit/assets) were examined over a ten year period, 1976-1985, in a sample of 101 public American corporations derived from a random sample of 239 Disclosure firms. Environmental variables were measured by industry GNP and concentration. Organizational effects were assessed by corporate size, technology, age and inside and outside ownership. Leadership was defined as corporate executives with the rank of vice president and above.;Based upon demography and network theory, it was posited that leadership should be examined on three levels of analysis: the executive group, the individual CEO/President level, and the individual-group level. Group characteristics of stability of tenure, inequality of entry dates and insularity or ratio of career to total managers were hypothesized to be negatively related to performance. The visible or star individual leader measured by business press citations, the individual leader as a gatekeeper through extraorganizational governance memberships, and the individual-group bridge based on distance in date of entry was hypothesized to have a positive effect on performance.;Results of correlational analysis revealed the independent variables more highly associated with stock price. The initial pooled data regression analysis revealed serial correlation. Subsequently, the analysis was performed cross sectionally with significant but low levels of R{dollar}\sp2{dollar}. Improvements in explained variance did not result from short term and long term lagged effects of the predictors. Guided by the organization as an actor explanation of organizational performance (Hall, 1977), the lagged effects of the previous Y value were added to the model. For both dependent variables, the lagged endogenous model resulted in the greatest improvement in explained variance, followed by leader group stability. The group level leader effects were more frequently significant with greater beta weights, and higher regression partial correlation coefficients than the individual-group or individual level leader variables.;Differential leader effects were found for group insularity, i.e., it was negatively associated with profitability and positively related to stock price. The individual level variables, which had a negligible impact on profitability were more predictive of stock price.;Overall, the results support the benefits of executive managerial tenure as proposed by administrative and bureaucratic theory, as well as the ability of prior performance to influence performance in the short run.
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
