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I Did It My Way: CEO Core Self-Evaluations and the Environmental Contingencies on Firm Risk-Taking Strategies
Journal article   Open access   Peer reviewed

I Did It My Way: CEO Core Self-Evaluations and the Environmental Contingencies on Firm Risk-Taking Strategies

Christian J. Resick, Sucheta Nadkarni, Jenny Chu, Jianhong Chen, Wan-Chien Lien, Jaclyn A. Margolis and Ping Shao
Journal of management studies, v 60(5), pp 1236-1272
Jul 2023
DOI: https://doi.org/10.1111/joms.12872
url
https://doi.org/10.17863/cam.89125View
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Abstract

Business & Economics Management Business Social Sciences
This study presents an environmentally contingent view of CEO core self-evaluations (CSE) and their effects on strategic risk taking. Drawing on upper echelons theory and approach-avoidance theory, we propose that high CSE CEOs are responsive to rather than disregard environmental cues and pursue strategic risks that enable their firms to capitalize on competitive opportunities while refraining from risks not suited to the external environment. Focusing on two forms of strategic risk - resource allocation risk taking and strategic non-conformity - we develop hypotheses examining the contingencies across levels of environmental concentration, dynamism, and munificence. We test our hypotheses on a panel of 106 CEOs from publicly traded US companies over a period from 1998 to 2004 using historiometric analyses. Supporting our hypotheses, findings indicate that the effects of CEO CSE on resource allocation risk taking and strategic non-conformity are contingent on industry concentration and environmental dynamism. Findings advance the understanding of CEOs' positive self-regard.

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15 citations in Web of Science
15 citations in Scopus

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Domestic collaboration
International collaboration
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Business
Management
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