Intl Conference on Economics, Finance & Business, Vienna

EXPLORING CEO ARCHETYPES, CEO MANAGERIAL PERCEPTIONS, AND THEIR IMPACT ON COMPANY PERFORMANCE: A THEORETICAL FRAMEWORK

DONATAS VOVERIS

Abstract:

In the contemporary competitive business environment, comprehending the impact of leadership characteristics on organizational outcomes is imperative. The chief executive officer (CEO), positioned at the pinnacle of managerial hierarchy within any organization, is universally recognized as the paramount leader, wielding unparalleled authority in strategic decision-making and bearing accountability for overall company performance. Although extant evidence suggests disparities in behavior, motivation, strategic decision-making, and performance between owner-CEOs and professional-CEOs, empirical findings concerning the nexus between these differences and company performance remain inconsistent. Accordingly, this study endeavors to conceptualize the intricate relationship between CEO archetypes, CEO managerial perceptions, and company performance. Leveraging insights from recent scholarly literature, this study initially delineates the concept of CEO archetypes. Subsequently, it scrutinizes CEO managerial perceptions – specifically, managerial ability, overconfidence, risk propensity, innovation, entrepreneurial orientation, and motivation – within the framework of CEO archetypes. Aligning with the overarching objective of for-profit companies to increase shareholder value, this research synthesizes scientific findings on the correlation between CEO archetypes and company financial performance. Recognizing the finite nature of a CEO’s authority within a company, governance factors are also considered. In conclusion, a comprehensive conceptual framework is presented, proposing the interplay between CEO archetypes, CEO managerial perceptions, and company performance, moderated by the span of control. This study contributes to existing scholarship by positing that the relationship between CEO types, specifically owner-CEOs and professional-CEOs, and company performance is not universally applicable. Instead, it is contingent upon a combination of individual-level and/or company-level variables. These findings hold significance for both management practitioners and scholars. Stakeholders such as company shareholders, investors, and board directors can derive valuable insights from this research to inform decisions, particularly in the realm of succession planning. For scholars, the conceptual framework provides a solid foundation for further research on owner-CEOs, professional-CEOs, governance variables, and company performance

Keywords: Owner-CEO, Professional-CEO, Managerial perceptions, Corporate governance, Company performance, Organizational life cycle