{"title":"CEO cognitive competencies in managing turnaround: Complexity and focus","authors":"Xin Liang","doi":"10.1177/03128962231168009","DOIUrl":null,"url":null,"abstract":"This study examines the knowledge structures (KSs) of CEOs of firms that attempted turnaround from performance decline. We developed and tested a theoretical model that describes how two cognitive characteristics of CEOs, complexity and centrality, influence the likelihood of turnaround. It is found that CEO KS centrality directly increases the chance of turnaround. In addition, CEO KS complexity is found to increasingly improve the chance of turnaround as a firm in decline launches a greater extent of strategic change to their organization. Together, in theory, our research suggests that CEO cognitive competencies matter for managing successful turnaround attempts. Practically speaking, the findings of this article imply that to improve their chance of achieving successful turnaround, declining firms should look for CEOs who are cognitively focused or who are cognitively complex enough to engage in the degree of strategic changes launched to save the firm. JEL Classification: L20, M1","PeriodicalId":47209,"journal":{"name":"Australian Journal of Management","volume":null,"pages":null},"PeriodicalIF":2.0000,"publicationDate":"2023-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Australian Journal of Management","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1177/03128962231168009","RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 1
Abstract
This study examines the knowledge structures (KSs) of CEOs of firms that attempted turnaround from performance decline. We developed and tested a theoretical model that describes how two cognitive characteristics of CEOs, complexity and centrality, influence the likelihood of turnaround. It is found that CEO KS centrality directly increases the chance of turnaround. In addition, CEO KS complexity is found to increasingly improve the chance of turnaround as a firm in decline launches a greater extent of strategic change to their organization. Together, in theory, our research suggests that CEO cognitive competencies matter for managing successful turnaround attempts. Practically speaking, the findings of this article imply that to improve their chance of achieving successful turnaround, declining firms should look for CEOs who are cognitively focused or who are cognitively complex enough to engage in the degree of strategic changes launched to save the firm. JEL Classification: L20, M1
期刊介绍：
The objectives of the Australian Journal of Management are to encourage and publish research in the field of management. The terms management and research are both broadly defined. The former includes the management of firms, groups, industries, regulatory bodies, government, and other institutions. The latter encompasses both discipline- and problem-based research. Consistent with the policy, the Australian Journal of Management publishes research in accounting, applied economics, finance, industrial relations, political science, psychology, statistics, and other disciplines, provided the application is to management, as well as research in areas such as marketing, corporate strategy, operations management, organisation development, decision analysis, and other problem-focuses paradigms.
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