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Updated: Aug 20, 2025
08:24
The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies
Published on: August 25, 2023
788
A CEO's Future Temporal Depth and Organizational Resilience.
Maximilian Weis1, Patricia Klarner1
1Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria.
Schmalenbachs Zeitschrift Fur Betriebswirtschaftliche Forschung = Schmalenbach Journal of Business Research
|November 23, 2022
Summary
CEOs with longer future temporal depth (FTD) experience fewer economic losses during crises. However, a longer FTD is linked to a slower recovery, which can be mitigated by a diverse top management team and prior crisis experience.
Area of Science:
- Organizational Behavior
- Strategic Management
- Cognitive Psychology
Background:
- Organizational resilience research has focused on organizational factors, neglecting CEO-level influences.
- Upper echelons theory posits CEOs significantly impact firm decisions and outcomes.
- Understanding CEO cognitive traits is crucial for explaining firm resilience.
Purpose of the Study:
- To investigate the role of CEO future temporal depth (FTD) in organizational resilience.
- To examine how CEO FTD affects firm performance during crises.
- To explore moderating effects of top management team (TMT) diversity and prior crisis experience.
Main Methods:
- Empirical analysis of 462 S&P500 firms during the Global Financial Crisis and COVID-19 pandemic.
- Quantitative assessment of CEO future temporal depth (FTD).
- Statistical modeling to link FTD, TMT diversity, crisis experience, economic losses, and recovery time.
Main Results:
- A longer CEO FTD is associated with less severe economic losses during crises.
- Conversely, a longer CEO FTD correlates with a longer recovery period.
- Functionally diverse TMTs mitigate losses, while prior crisis experience shortens recovery time.
Conclusions:
- CEO FTD is a significant cognitive antecedent of organizational resilience.
- FTD influences both the impact and duration of recovery from adversity.
- Integrating cognitive and experiential factors offers a nuanced understanding of organizational resilience and CEO leadership.
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