Steffen Strese

CEOs' Passion for Inventing and Radical Innovations in SMEs: The Moderating Effect of Shared Vision

Based on a sample of 388 small and medium‐sized enterprises (SMEs), we investigate how a CEOs passion for inventing is associated with radical innovations in SMEs. Furthermore, we examine whether this relationship is moderated by a shared vision. Our results demonstrate that CEOs who are passionate about inventing play a significant role with regard to radical innovation and that the degree to which a firms members share its vision is positively correlated with this relationship. Our findings enrich upper echelons theory by incorporating insights into how deep‐level psychological traits are related to firm outcomes. In addition, we enhance our understanding of how passion can actually predict firm‐level outcomes.

Temporal Change Patterns of Entrepreneurial Orientation: A Longitudinal Investigation of CEO Successions

This study investigates the temporal change patterns of entrepreneurial orientation (EO) subsequent to chief executive officer (CEO) successions. Integrating prior research, we hypothesize that CEO successions lead to a change in EO and that this change exhibits an inverse U‐shape over time. Based on data collected for 67 CEO successions, our empirical results support our hypotheses, showing that successions effectuate changes in EO and tend to increase the level of EO in firms. Changes in EO peak in the second to fourth year of a new CEOs tenure, with less change before and after. We also demonstrate that changes in EO occur later but are more pronounced if the newly appointed firm leader is an outside CEO.

Share Repurchases and Myopia: Implications on the Stock and Consumer Markets

Investor demand has promoted share repurchases to the dominating payout instrument for U.S. firms. However, critics worry that the repurchase boom leads to firms neglecting long-term investments. Even worse, scholars have shown that investor pressure also motivates firms to cut marketing investments with the aim of boosting short-term income, a practice called myopic marketing management. Extant theory still lacks an understanding of whether and how the co-occurrence of share repurchases and myopic marketing affects firm stakeholders such as investors and consumers. Using a large-scale cross-industry sample, the authors reveal that there is a higher share of firms cutting marketing investments among repurchasing firms than among nonrepurchasing firms. Furthermore, investors immediately respond negatively to myopic firms that also repurchase shares. Finally, repurchases and myopic marketing are also associated with an increase in product recalls. This first study to assess share repurchases through a marketing lens hence reveals negative effects on both the stock and the consumer markets.

Real or Shadow Options? The Influence of CEO Overconfidence and Exploration on CVC Investments

We utilize Corporate Venture Capital (CVC) investments to investigate the behavior of overconfident CEOs during the real option identification process. The study theoretically argues a negative rel...

The impact of TMT heterogeneity on Large Firms’ Entrepreneurial Orientation : A Double-edge Sword?

This study investigates the effects of different types of heterogeneity within the top management team (TMT) on large firms’ entrepreneurial orientation (EO), particularly in environments characterized by competitive intensity. Drawing on the upper echelons perspective and organizational conflict literature, we hypothesize that relations heterogeneity within the TMT is negatively associated with EO, while task heterogeneity within the TMT positively relates to EO and that high levels of competitive intensity strengthen these relationships. Our results, based on panel data for 318 firms over 9 years, support our hypothesis of a negative association between relations heterogeneity and EO as well as a positive relationship between task heterogeneity and EO. While competitive environments strengthen the negative relationship between relations heterogeneity and EO, we do not find support for such an interaction effect with task heterogeneity. We contribute to management research by advancing the understanding ...

Rotten Apple Spoils the Barrel? : Greenwashing and Trust in Cause-Related Marketing

This study analyses the interplay between greenwashing and trust in Cause-Related Marketing (CRM) in three steps. First, we adopt the model of initial trust conceptualized by McKnight et al. (1998)...