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Ceo Locus of Control and Small Firm Performance: an Integrative Framework and Empirical Test

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  • Christophe Boone
  • Arjen Witteloostuijn
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    Abstract

    Previous research on the impact of chief executive officer (CEO) locus of control is mainly based on simple and partial mappings of bivariate associations between CEO locus of control and organizational outcomes. In addition, distinct substreams have emerged in which intricately related phenomena are studied separately. to overcome this fragmentation and polarization, we provide and empirically test an integrative framework based on previously tested hypotheses on the impact of CEO locus of control. Our approach differs from prior research in two ways. First, it simultaneously takes account of strategic choice and firm performance in order to assess the extent to which strategy mediates the relationship between CEO locus of control and organizational performance. Second, we consider the CEO to be both a formulator and implementor of organizational strategies. Besides the observation that CEO locus of control seems to matter a lot in terms of explaining organizational performance in the present sample, our results demonstrate that an integrative approach increases our insight into the impact of CEO locus of control by revealing why some CEOs achieve higher organizational performance than others. Copyright 1996 Basil Blackwell Ltd.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Management Studies.

    Volume (Year): 33 (1996)
    Issue (Month): 5 (09)
    Pages: 667-700

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    Handle: RePEc:bla:jomstd:v:33:y:1996:i:5:p:667-700

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380

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    Cited by:
    1. Harabi, Najib, 2001. "The Formation of New Firms – An Empirical Analysis from Switzerland," MPRA Paper 4418, University Library of Munich, Germany.
    2. Mirjam Praag & Arjen van Witteloostuijn & Justin van der Sluis, 2013. "The higher returns to formal education for entrepreneurs versus employees," Small Business Economics, Springer, vol. 40(2), pages 375-396, February.
    3. Boone, Christophe & van Olffen, Woody & van Witteloostuijn, Arjen, 1998. "Psychological team make-up as a determinant of economic firm performance: An experimental study," Journal of Economic Psychology, Elsevier, vol. 19(1), pages 43-73, February.
    4. Boone,Christophe & Olffen,Woody,van & Witteloostuijn,Arjan,van, 2003. "TEAM COMPOSITION, LEADERSHIP AND INFORMATION-PROCESSING BEHAVIOR A simulation game study of the locus-of-control personality trait," Research Memorandum 035, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    5. Mirjam van Praag & Arjen van Witteloostuijn & Justin van der Sluis, 2009. "Returns for Entrepreneurs versus Employees: The Effect of Education and Personal Control on the Relative Performance of Entrepreneurs vis-a-vis Wage Employees," Tinbergen Institute Discussion Papers 09-111/3, Tinbergen Institute.
    6. Renneboog, L.D.R. & Spaenjers, C., 2009. "Where Angels Fear to Trade: The Role of Religion in Household Finance," Discussion Paper 2009-018, Tilburg University, Tilburg Law and Economic Center.
    7. Wijbenga, Frits H. & van Witteloostuijn, Arjen, 2007. "Entrepreneurial locus of control and competitive strategies - The moderating effect of environmental dynamism," Journal of Economic Psychology, Elsevier, vol. 28(5), pages 566-589, October.
    8. Wilderom, C.P.M. & Berg, P. van den, 2000. "Firm Culture and Leadership as Firm Performance Predictors: a Resource-Based Perspective," Discussion Paper 2000-03, Tilburg University, Center for Economic Research.
    9. Boone,Christophe & Olffen, van,Woody, 2002. "Psychological team diversity and strategy implementation," Research Memorandum 004, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    10. Boone,Christophe & Olffen, van,Woody & Roijakkers,Nadine, 2002. "Locus of control and study program choice: evidence of personality sorting in educational choice," Research Memorandum 005, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    11. Harabi, Najib, 2005. "Determinants of Firm Growth: An Empirical Analysis from Morocco," MPRA Paper 4394, University Library of Munich, Germany.
    12. Harabi, Najib, 2003. "Déterminants de la croissance des entreprises: Une analyse empirique du Maroc
      [Determinants of Firm Growth: An Empirical Analysis from Morocco]
      ," MPRA Paper 4440, University Library of Munich, Germany.
    13. Harabi, Najib, 2007. "Picking Winners and Losers: An Empirical Analysis of Industrial Policy in Morocco," MPRA Paper 4194, University Library of Munich, Germany.
    14. Halkos, George Emmanuel & Tzeremes, Nickolaos G., 2007. "Productivity efficiency and firm size: An empirical analysis of foreign owned companies," International Business Review, Elsevier, vol. 16(6), pages 713-731, December.
    15. MUEHLFELD, Katrin & VAN DOORN, Jenny & VAN WITTELOOSTUIJN, Arjen, 2011. "The effects of personality composition and decision-making processes on change preferences of self-managing teams," ACED Working Papers 2011009, University of Antwerp, Faculty of Applied Economics.
    16. Sahin, M. & Nijkamp, P. & Rietdijk, M., 2009. "Cultural Diversity and Urban Innovativeness: Personal and Business Characteristics of Urban Migrant Entrepreneurs," Serie Research Memoranda 0033, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    17. van Praag, Mirjam & van Witteloostuijn, Arjen & van der Sluis, Justin, 2009. "Returns for Entrepreneurs vs. Employees: The Effect of Education and Personal Control on the Relative Performance of Entrepreneurs vs. Wage Employees," IZA Discussion Papers 4628, Institute for the Study of Labor (IZA).
    18. Kayhan Tajeddini & Stephen Mueller, 2009. "Entrepreneurial characteristics in Switzerland and the UK: A comparative study of techno-entrepreneurs," Journal of International Entrepreneurship, Springer, vol. 7(1), pages 1-25, March.

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