Strategic Directions for AI: The Role of CIOs and Boards of Directors

MIS Quarterly ◽  
2021 ◽  
Vol 45 (3) ◽  
pp. 1603-1644
Author(s):  
Jingyu Li ◽  
◽  
Mengxiang Li ◽  
Xincheng Wang ◽  
Jason Bennett Thatcher ◽  
...  
Keyword(s):  
Boards Of Directors ◽  
Top Management Teams ◽  
Chief Information Officers ◽  
Upper Echelons ◽  
Listed Firms ◽  
Upper Echelons Theory ◽  
Strategic Direction ◽  
New Business ◽  
Post Hoc

This paper applies upper echelons theory to investigate whether chief information officers (CIOs) and boards of directors affect the development of AI orientation, which represents firms’ overall strategic direction and goals regarding the introduction and application of artificial intelligence (AI)technology. We tested our model using a dataset drawn from 1,454 publicly listed firms in China. Our findings show that the presence of a CIO positively influences AI orientation and that board educational diversity, R&D experience, and AI experience positively moderate the CIO’s effect on AI orientation. Our post hoc analysis further demonstrates that these board characteristics represent contingencies that impact AI orientation but not conventional IT orientation. This paper contributes to the upper echelons literature and IT management research by offering contextualized arguments that explain new business and IT strategies such as AI orientation. Further, our findings suggest important implications about how to build top management teams and boards capable of effectively developing AI orientations

The Inclusion of CIOs in Top Management Teams

2016 ◽  
Vol 29 (3) ◽  
pp. 37-52 ◽  
Author(s):  
Wenhong Luo
Keyword(s):  
Organizational Factors ◽  
Top Management Teams ◽  
Top Management ◽  
Data Set ◽  
Top Executives ◽  
Firm Diversification ◽  
Upper Echelons Theory ◽  
Role Of It ◽  
The Relationship

The inclusion of the CIO in the top management team (TMT) is one indicator of how top executives view the role of IT within their firms. This study draws upon the upper echelons theory to examine the organizational factors contributing to the CIO inclusion. A panel data set is used to empirically test the hypotheses. The results show that TMT age and firm diversification are found to be linked to the CIO inclusion. The study contributes to an understanding of the relationship between the CIO and TMT and provides a potential measure of IT importance within firms.

The Effect of Internationalization on Firm Performance: A Moderating Role of Heterogeneity in TMTs’ Nationality

2020 ◽  
pp. 193896552095870
Author(s):  
Sujin Song ◽  
Seoki Lee
Keyword(s):  
Firm Performance ◽  
Hierarchical Linear Modeling ◽  
Top Management Teams ◽  
Linear Modeling ◽  
Return On Assets ◽  
Upper Echelons Theory ◽  
Comprehensive Examination ◽  
The Relationship ◽  
Moderating Role

The effect of internationalization on firm performance has been investigated in the hospitality literature in a relatively extensive manner. However, the literature has still provided mixed findings. Furthermore, the moderating role of top management teams (TMTs) on the relationship between internationalization and firm performance has not been explored yet in the hospitality literature. Considering the increasing importance of internationalization in the hospitality industry and a significant role of TMTs in implementing this internationalization, this study performs a comprehensive examination on the effect of internationalization on firm performance using three different internationalization measures (i.e., degree, diversification, and speed) and three different performance measures (i.e., Tobin’s q, return on assets, and international returns). This study also tests the moderating role of heterogeneity in TMTs’ nationality based on the upper echelons theory, employing hierarchical linear modeling (HLM) to test the proposed hypotheses.

scholarly journals The Effects of Green Transformational Leadership on Adoption of Environmentally Proactive Strategies: The Mediating Role of Green Engagement

2021 ◽  
Vol 13 (6) ◽  
pp. 3366
Author(s):  
Stanley Y. B. Huang ◽  
Chih-Wen Ting ◽  
Ming-Way Li
Keyword(s):  
Transformational Leadership ◽  
Top Management Teams ◽  
Management Teams ◽  
Top Management ◽  
Potential Growth ◽  
Mediating Role ◽  
Upper Echelons Theory ◽  
Curve Model ◽  
Novel Concept

To explore key antecedents of environmentally proactive strategies, this work uses upper echelons theory to examine a novel concept-green engagement with its antecedents (green transformational leadership) and consequence (environmentally proactive strategies). This work employed a potential growth curve model with 501 CEOs and top management teams of technology manufacturing businesses in Greater China at three times over eight months to analyze the theoretical model. The results of this work showed that the green transformational leadership of CEOs significantly predicts positive changes of green engagement of top management teams, which consequently predicts environmentally proactive strategies. These findings provide theoretical insights for the field of environmental development that can advance the literature on environmentally proactive strategies.

scholarly journals CEO Temporal Focus and Corporate Philanthropy: The Moderating Role of Ownership

SAGE Open ◽  
2021 ◽  
Vol 11 (1) ◽  
pp. 215824402110041
Author(s):  
Luu Thi Nguyen ◽  
Shouming Chen ◽  
Ho Kwong Kwan
Keyword(s):  
Corporate Philanthropy ◽  
Private Firms ◽  
Public And Private ◽  
Listed Firms ◽  
Upper Echelons Theory ◽  
Negative Effect ◽  
Temporal Focus ◽  
The Relationship ◽  
Moderating Role

This study examines the association between CEO temporal focus and corporate engagement in philanthropy, and considers the moderating role of ownership. This association is investigated based on upper echelons theory and the conceptual framework of temporal focus. Using a sample of 2,285 observations of Chinese listed firms from 2010 to 2015, our results show that the relationship between CEO past focus and corporate philanthropy is positive in state-owned firms but negative in private firms. In addition, CEO future focus is negatively associated with charitable activities in state-owned firms, but positively associated with such activities in private companies. For present-oriented CEOs, the relationship between temporal focus and philanthropy is negative in both public and private firms, but the negative effect is stronger in private firms. The findings of this study show how CEOs’ time perspectives shape their decisions on company engagement in philanthropic projects.

scholarly journals Path Dependence, VRIN Resource Endowments, and Managers: Towards an Integration of Resource-Based Theory and Upper Echelons Theory

2013 ◽  
Vol 1 (1) ◽  
pp. 109
Author(s):  
Dev K. Dutta
Keyword(s):  
Competitive Advantage ◽  
Path Dependence ◽  
Sustainable Competitive Advantage ◽  
Upper Echelons ◽  
Upper Echelons Theory ◽  
Path Dependencies ◽  
Resource Endowments ◽  
Proactive Role ◽  
Resource Based Theory

<p>Path dependencies associated with the firm’s evolving resource endowments lead to redundancies,<br />which makes it sub-optimal to attain sustainable competitive advantage based on these resource<br />bundles. In this context, managers can play a proactive role by ensuring that resource endowments<br />continue to remain beneficial for their organizations. By suggesting such a linkage and the enabling<br />role of managers, I provide a way to integrate core arguments of two of the foremost organizational<br />theories in vogue: resource-based theory (RBT) and upper echelons theory (UET).</p>

Unfolding the concept of a TMT-diversification strategy fit

2015 ◽  
Vol 21 (3/4) ◽  
pp. 139-158 ◽  
Author(s):  
Martin Weiss ◽  
Dirk Schneider ◽  
Jekaterina Lebid
Keyword(s):  
Organizational Performance ◽  
Corporate Strategy ◽  
Empirical Studies ◽  
Top Management Teams ◽  
Upper Echelons ◽  
Conceptual Foundation ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Strategy Fit ◽  
The Impact

Purpose – This paper aims to develop a conceptual foundation of a fit between top management teams (TMTs) and their company’s corporate strategy. The authors fortify the importance of the concept of fit if the impact of upper echelons on organizational performance is trying to be explained. Yet, a constitutive concept of fit for the corporate strategy, a particularly important dimension of strategy, was previously neglected. Design/methodology/approach – In a conceptual/theoretical approach, the authors selected demographic managerial characteristics from previous empirical studies from the research stream on upper echelons and combined them with other promising characteristics. To analyze them in respect to the requirements of low and highly diversified companies, the authors applied the concept of the dominant logic, an important theory in the field of corporate strategy. Findings – The authors establish two distinct profiles of TMT members for low and high degrees of diversification and provide guidance on how to measure the TMT-corporate strategy fit – for individual TMT members and for the entire TMT – as a degree of fit on a ratio scale. Originality/value – This work constitutes the first exhaustive concept of a TMT-corporate strategy fit. It provides a profound research foundation for scholars in the field of TMTs and the upper echelons theory as well as a promising and complementary perspective for practitioners when assessing their TMT composition.

scholarly journals CEO resistance: The role of BOD dependence/independence and CEO profile

2015 ◽  
Vol 13 (1) ◽  
pp. 652-662 ◽  
Author(s):  
Pouya Seifzadeh
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
Stewardship Theory ◽  
Upper Echelons ◽  
The Relationship ◽  
Do So

The relationship between boards of directors and CEOs has been at the center of attention in the literature on Corporate Governance. However, little has been done to identify sources of friction and possible outcomes in this relationship. In this paper, drawing on the literature on Agency/Stewardship Theory, Upper Echelons perspective, and Corporate Governance, I have addressed this gap. To do so, this paper recognizes the distinction between founder and non-founder CEOs and dependent and independent boards of directors. I have hypothesized that founder CEOs will demonstrate higher resistance than non-founder CEOs in the presence of independent boards of directors and lower than non-founder CEOs in the presence of dependent boards of directors to takeover proposals.

Determinants of restaurant internationalization: an upper echelons theory perspective

2016 ◽  
Vol 28 (12) ◽  
pp. 2864-2887 ◽  
Author(s):  
Won Seok Lee ◽  
Insin Kim ◽  
Joonho Moon
Keyword(s):  
Boards Of Directors ◽  
Public Information ◽  
Chief Executive ◽  
Generalized Least Squares ◽  
Strategic Decision ◽  
Standard Industrial Classification ◽  
Upper Echelons ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Degree Of Internationalization

Purpose The purpose of this research is to account for the internationalization of restaurants. The conceptual framework of upper echelons theory is applied to identify the demographic determinants of internationalization among chief executive officers (CEOs). Design/methodology/approach Data from 30 restaurant firms for the period 1999-2013 were collected from a variety of sources, primarily Compustat and Execucomp, based on Standard Industrial Classification (SIC) code 5812, the annual 10-K and public information. A panel feasible generalized least squares model was used as the main instrument of analysis. Findings The findings indicate that the CEO gender and share ownership negatively affect the internationalization of restaurant companies, whereas size, the extent of franchising, the type of restaurant and stock options positively affect the degree of internationalization. Additionally, an inverted U-shaped relation exists between CEO tenure and the degree of internationalization. Practical implications The presented information may provide shareholders and boards of directors with valuable guidelines regarding the assignment of appropriate managers depending on the extent to which their companies are pursuing internationalization strategies. Originality/value Most studies in hospitality sectors have focused only on accounting-based measures to explain strategic decision-making, although proponents of upper echelons theory have argued that CEO attributes influence strategic decisions/changes. This study contributes to the literature on hospitality by identifying the effects of CEO characteristics on internationalization decisions.

The Chief Political Officer: CEO Characteristics and Firm Investment in Corporate Political Activity

2016 ◽  
Vol 58 (3) ◽  
pp. 612-643 ◽  
Author(s):  
Bruce C. Rudy ◽  
Andrew F. Johnson
Keyword(s):  
Demographic Characteristics ◽  
Political Activity ◽  
Firm Investment ◽  
Upper Echelons ◽  
Corporate Political Activity ◽  
Firm Level ◽  
Upper Echelons Theory ◽  
Educational Backgrounds ◽  
Ceo Characteristics

Research on corporate political activity has considered a number of antecedents to a firm’s engagement in politics. The majority of this research has focused on either industry or firm-level motivations that lead to corporate political activity, leaving the role of the firm’s leader noticeably absent in such scholarship. This article combines ideas from Upper Echelons Theory with research in corporate political activity to bridge this important gap. More specifically, this research utilizes CEO demographic characteristics to determine (a) whether a firm will invest in political activity and (b) how these characteristics influence the particular approach to political activity the firm undertakes. Considering 27 years of data from large U.S. firms, we find that a CEO’s age, tenure, functional, and educational backgrounds influence whether and how the firm invests in political activity.

The Role of External Environment in Upper Echelons Theory

2013 ◽  
Vol 39 (1) ◽  
pp. 69-109 ◽  
Author(s):  
Sibel Yamak ◽  
Sabina Nielsen ◽  
Alejandro Escribá-Esteve
Keyword(s):  
External Environment ◽  
Upper Echelons ◽  
Upper Echelons Theory
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