Does one size fit all? CEO profiles and strategic management choices

Abstract

PurposeUpper echelons theory (UET) stands that cognitive bases of the CEO influence the field of vision and interpretation of the environment and affect its decisions about the firm. The main objective of the paper is to see if there are different CEO profiles, which can be associated with different strategic management choices.Design/Methodology/approachUsing a representative sample of 1,236 small firms in high- and medium-high-technology, both in industrial and service sectors, the authors identify five CEO typologies through cluster analysis. The classification is based on CEO's personal characteristics such as education, tenure in the company or entrepreneurial experience. Multivariate analysis is carried out to establish the possible association between belonging to these clusters and some strategic decisions such as orientation towards innovation, efficiency or internationalisation. The unit of analysis is the firm focusing on the CEO.FindingsThe authors conclude that it is possible to classify the CEOs of these companies into five well-differentiated groups, with specific profiles. We find a significant association between belonging to a CEO profile and strategic choices taken in the firm. Managers who have been CEOs in several companies and have some entrepreneurial experience frequently guide the company towards innovation and internationalisation. CEOs with a lot of experience but limited to a single company often look for process efficiency.Furthermore, it is observed that the belonging of these clusters is not evenly distributed in the group of companies analysed. Instead, depending on size and family / no family issues, the authors find a different presence of the CEO typologies.Originality/valueThe work provides relevant information in the field of small-, high- and medium-high-technology companies in relation to the profile of the CEO.