TY - JOUR
T1 - How CEO empowering leadership shapes top management team processes
T2 - Implications for firm performance
AU - Carmeli, Abraham
AU - Schaubroeck, John
AU - Tishler, Asher
N1 - Funding Information:
We would like to thank the editor and three anonymous reviewers of this journal for their helpful comments and suggestions. We also wish to thank Franka Gwirtzman for her assistance with data collection. We appreciate editorial comments of Esther Singer, Gerda Kessler, and Marcy Schafer on earlier drafts of this paper. We also thank the Institute for Technology and Society at the Faculty of Management, Tel Aviv University, for their support in this research. Appendix A Measurement properties. Construct and Indicators Standardized loading Reliability Variance extracted estimate Empowering leadership – .796* .580 λ x1 .788 .621 λ x2 .932 .868 λ x3 .500 .250 TMT behavioral integration – .893* .791 λ m1 .867 .751 λ m2 .859 .737 λ m3 .848 .719 TMT potency – .920* .744 λ m5 .935 .874 λ m6 .858 .736 λ m7 .779 .606 λ m8 .873 .762 Firm performance – .859* .607 λ y1 .822 .675 λ y1 .798 .636 λ y1 .648 .420 λ y1 .836 .698 *Denotes composite reliabilities. Abraham Carmeli is a professor of strategy and management at Tel Aviv University, Faculty of Management. He received his Ph.D. from the University of Haifa. His current research interests include leadership and top management teams, strategic decision making processes, decline and failures in organizations, positive work relationships, knowledge creation and integration, and creativity and innovative behaviors. John Schaubroeck is John A. Hannah Professor of Psychology and Management at Michigan State University. He received his PhD from Purdue University. His research interests are related primarily to psychological issues associated with leadership, work related stress and employee health. Asher Tishler received his B.A. in Economics and Statistics from the Hebrew University of Jerusalem, and his Ph.D. in Economics from the University of Pennsylvania. He has been affiliated with the Faculty of Management at Tel Aviv University since 1976. Currently he is the dean of the Faculty of Management at Tel Aviv University and the director of the Institute of Technology and Society and the Eli Hurvitz Institute of Strategic Management. His main research interests are applied microeconomics, strategy, models of research and development, multivariate statistics, energy economics, and defense-related issues.
PY - 2011/4
Y1 - 2011/4
N2 - This study examines how CEO empowering leadership shapes top management team (TMT) behavioral integration and potency, thereby enhancing firm performance. Using a sample of 82 TMTs, structural equation modeling supports a mediation model in which CEO empowering leadership is positively related to TMT behavioral integration, and, in turn, it enhances TMT potency and firm performance. The effect of TMT potency on firm performance is stronger when the TMT members perceive high environmental uncertainty. We discuss both theoretical and practical implications of the paper for research on Upper Echelons Theory and TMTs.
AB - This study examines how CEO empowering leadership shapes top management team (TMT) behavioral integration and potency, thereby enhancing firm performance. Using a sample of 82 TMTs, structural equation modeling supports a mediation model in which CEO empowering leadership is positively related to TMT behavioral integration, and, in turn, it enhances TMT potency and firm performance. The effect of TMT potency on firm performance is stronger when the TMT members perceive high environmental uncertainty. We discuss both theoretical and practical implications of the paper for research on Upper Echelons Theory and TMTs.
KW - Behavioral integration
KW - CEO empowering leadership
KW - Firm performance
KW - Potency
KW - Top management teams
UR - http://www.scopus.com/inward/record.url?scp=79955470521&partnerID=8YFLogxK
U2 - 10.1016/j.leaqua.2011.02.013
DO - 10.1016/j.leaqua.2011.02.013
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AN - SCOPUS:79955470521
SN - 1048-9843
VL - 22
SP - 399
EP - 411
JO - Leadership Quarterly
JF - Leadership Quarterly
IS - 2
ER -