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How CEO Workaholism Influences Firm Performance: The Roles of Collective Organizational Engagement and TMT Power
Zhuolin She1, Quan Li2, Jilei Zhou3
1School of Public Administration and Policy, Renmin University of China, Beijing, China.
Frontiers in Psychology
|October 8, 2021
Summary
CEO workaholism boosts firm performance by increasing employee engagement. This effect is stronger when the top management team (TMT) has high power distance, showing leadership
Area of Science:
- Business Administration
- Organizational Behavior
- Management Science
Background:
- Upper echelons theory posits that executive characteristics influence strategic choices and firm outcomes.
- CEO workaholism, characterized by excessive work hours and an inability to disconnect, is increasingly prevalent.
- Understanding the nuanced effects of CEO workaholism on organizational dynamics is crucial for effective leadership.
Purpose of the Study:
- To investigate the direct relationship between CEO workaholism and firm performance.
- To examine the mediating role of collective organizational engagement in the CEO workaholism-firm performance link.
- To explore the moderating effect of top management team (TMT) power distance on the relationship between CEO workaholism and collective organizational engagement.
Main Methods:
- Utilized multi-source, multi-wave data from 122 CEOs and their TMT members in state-owned enterprises.
- Employed statistical analyses to test proposed direct, mediating, and moderating effects.
- Focused on empirical examination of leader workaholism at the firm level.
Main Results:
- CEO workaholism positively influences collective organizational engagement.
- Collective organizational engagement subsequently enhances firm performance.
- TMT power distance moderates the CEO workaholism-engagement link; the effect is stronger with high power distance.
Conclusions:
- CEO workaholism can be a driver of firm performance through enhanced employee engagement, particularly in hierarchical structures.
- Findings contribute to the literature on workaholism, leadership, and organizational behavior.
- Offers practical insights for management regarding the impact of CEO behaviors and TMT dynamics on organizational outcomes.
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