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Chief global officers, geographical sales dispersion, and firm performance

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  • Feng, Cong
  • Patel, Pankaj C.
  • Sivakumar, K.

Abstract

Firms are increasingly employing Chief Global Officers (CGOs) in their C-suites. Drawing on the information processing theory and the instrumental leadership framework, we argue that CGOs could be an important conduit in leveraging international scope to improve organizational performance. Based on a sample of 1,293 U.S. firms between 2006 and 2015, the results show that in addition to the direct positive association between CGO presence and firm performance, CGO presence mediates the association between geographical sales dispersion and firm performance. The hypotheses are supported for stock-market based performance as well as international sales performance. The findings are robust to a variety of tests, including alternate measures of variables of interest, alternate model specifications, and matched-pair sampling. Additional analyses comparing CGO presence with executive presence in other functional areas suggest the distinctive role of CGO in the top management team.

Suggested Citation

  • Feng, Cong & Patel, Pankaj C. & Sivakumar, K., 2020. "Chief global officers, geographical sales dispersion, and firm performance," Journal of Business Research, Elsevier, vol. 121(C), pages 58-72.
    • Handle: RePEc:eee:jbrese:v:121:y:2020:i:c:p:58-72
    DOI: 10.1016/j.jbusres.2020.08.011
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