Are Founder-Led Firms Less Susceptible to Managerial Myopia?

Schuster, Charlotte L.; Nicolai, Alexander T.; Covin, Jeffrey G.

doi:10.1177/1042258718806627

Cited by 71 publications

(41 citation statements)

References 136 publications

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“…Lee et al (2017), for example, found an “overconfidence bias” in founder CEOs (compared with professional CEOs) as displayed in their communication (Twitter use), issuance of high earnings forecasts, and use of stock options. Further, Schuster et al (2018) showed that founder CEOs are less likely to exhibit managerial myopia as measured in R&D cuts. In all, although these studies paint a picture of founders as aggressive, overconfident decision makers, the findings of other studies do not support this view.…”

Section: Founder‐ceo Research Themesmentioning

confidence: 99%

“…Risk-taking Early (nascent) and late (post-IPO) stages Fahlenbrach (2009) Lee et al 2017Overconfidence Abebe and Tangpong (2018) Innovativeness Schuster et al (2018) Abbreviations: CEO, chief executive officer; IPO, initial public offering.…”

Section: Individual Levelmentioning

confidence: 99%

“…Apart from exploring the direct impact of the founder CEO on firm strategic choice, research has also examined the dynamics of founder-CEO leadership style vis-à-vis firm strategies. Specifically, studies have examined how the founder's psychological disposition influences his or her propensity for risk and aggressive strategic behavior(Lee, Hwang, & Chen, 2017;Meyer & Dean, 1990;Schuster, Nicolai, & Covin, 2018;Zahra, 2005) Lee et al (2017),. for example, found an "overconfidence bias" in founder CEOs (compared with professional CEOs) as displayed in their communication (Twitter use), issuance of high earnings forecasts, and use of stock options.Further, Schuster et al (2018) showed that founder CEOs are less likely to exhibit managerial myopia as measured in R&D cuts.…”

mentioning

confidence: 99%

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The founder chief executive officer: A review of current insights and directions for future research

Abebe

Acharya

et al. 2020

Corporate Governance

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Research Question/Issue: From its inception in the late 1980s and early 1990s, founder-chief executive officer (CEO) research has garnered significant scholarly attention in the strategy and entrepreneurship disciplines, although other fields-such as economics, finance, and family business-have also generated substantial research insight on this topic. Despite this progress, a limited consensus exists on the influence of the founder CEO owing to the fragmented nature of extant research. In this review, we address this fragmentation by reviewing current literature, synthesizing the discipline-specific findings into an integrated framework, and highlighting promising directions for future founder-CEO research. Research Findings/Insights: Using a cross-disciplinary review of founder-CEO research based on 221 articles from 24 academic journals, we synthesize current research and provide directions for future research. Our framework organizes current research on the founder CEO into three broad themes. First, we review and synthesize scholarly work on factors related to the founder CEO during the nascent years of the firm. In the second theme, we review research that explores the impact of the founder CEO on strategic choices and firm configurations. In the third theme, we review the performance consequences of the founder CEO. Theoretical/Academic Implications: This review advances research on the founder CEO by taking stock of insights from various disciplines, highlighting advancements made, and suggesting promising directions for future research on founder CEOs. Additionally, a critical evaluation of current methodological approaches provides opportunities for strengthening the rigor of scholarly inquiry in this area.

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Section: Founder‐ceo Research Themesmentioning

confidence: 99%

Section: Individual Levelmentioning

confidence: 99%

mentioning

confidence: 99%

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The founder chief executive officer: A review of current insights and directions for future research

Abebe

Acharya

et al. 2020

Corporate Governance

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“…Although research and development (R&D) is usually associated with large-scale companies, more emphasis needs to be placed on these activities in SMEs to surpass their competitors (Forsman and Annala, 2012). Schuster et al (2018) report that founder-led firms are less likely than non-founder-led firms to cut R&D expenditures to meet short-term earnings goals.…”

Section: Individual and Firm-level Factorsmentioning

confidence: 99%

Determinants of innovation decisions among Emirati female-owned small and medium enterprises

Jabeen

Faisal

Matroushi

et al. 2019

IJGE

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Purpose The purpose of this study is to investigate the factors that influence the innovation decisions of Emirati women-owned small and medium-sized enterprises (SMEs). Design/methodology/approach This study uses a two-phased approach. In the first phase, empirical research on 50 Emirati female entrepreneurs is conducted to discover the extent of innovation in their ventures. In the second phase, the study uses an analytical hierarchy process (AHP) to prioritize factors considered important in facilitating business innovation among SMEs. The AHP model is developed with 9 criteria and 25 sub-criteria based on the previous literature. Face-to-face interviews are conducted with Emirati female entrepreneurs operating nascent (n = 10), start-up (n = 10) and established innovative (n = 10) businesses to collect data for the AHP study. The data collected are interpreted and a priority vector is assigned to each criterion and sub-criterion. Findings Female SME owners prioritize government policies, research and development, innovation strategy and skill development as the main criteria that influence their innovation decisions. Family support, access to external financing, social networks and the allocation of funds are the main sub-criteria affecting their decisions to be innovative. Furthermore, respondents who are in the nascent business stage consider family motivation as the greatest influence on initiating new ideas through financial and moral support. Among all respondents, the nascent business owners rank skill development the highest because they are still in the initial stages of their business journeys, and thus, obtaining these skills could help them increase innovation and success in their ventures. However, respondents in the established stage rank innovation strategy the highest. Research limitations/implications The study results can help policymakers and women’s associations, such as businesswomen councils, identify the specific inhibitors and facilitators linked to innovation and, thereby, help develop various effective policies to promote innovation among Emirati women-owned SMEs. Originality/value The study is one attempt to facilitate innovation among Emirati women-owned SMEs through its efforts to discover the determinants of innovation efforts at nascent, start-up and established business stages as defined by the Global Entrepreneurship Monitor (2012). The study can help Emirati women-owned SMEs understand the critical factors influencing innovation and can encourage them to incorporate innovative characteristics for business growth and resilience. Furthermore, the study can provide insights for policymakers, financial institutions and non-governmental organizations on factors hindering innovation among Emirati women-owned SMEs, which may serve as a tool for creating resilience among female entrepreneurs.

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“…The level of depression in our dataset followed a right-skewed distribution with many posts having no or little depression. To make inferences about the degree of depression in the data, we performed a log transformation to correct for skewness (Frederiksen, Wennberg, & Balachandran, 2016;Schuster, Nicolai, & Covin, 2018). Posts with depression greater than zero were used in this transformation (Draper & Cox, 1969) and observations without depression were not retained.…”

Section: Methodsmentioning

confidence: 99%

Entrepreneurial Disappointment: Let Down and Breaking Down, a Machine-Learning Study

2020

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Are Founder-Led Firms Less Susceptible to Managerial Myopia?

Cited by 71 publications

References 136 publications

The founder chief executive officer: A review of current insights and directions for future research

The founder chief executive officer: A review of current insights and directions for future research

Determinants of innovation decisions among Emirati female-owned small and medium enterprises

Entrepreneurial Disappointment: Let Down and Breaking Down, a Machine-Learning Study

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