Paradoxical leader behavior in long-term corporate development: Antecedents and consequences

•Paradoxical CEOs manages paradoxes by relating opposites directly.•Paradoxical CEOs address present–future and organization–environment paradoxes.•Long-term orientation, holistic thinking, environmental uncertainty are antecedents.•Profits, R&D investments, market share, corporate reputation ar...

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Published inOrganizational behavior and human decision processes Vol. 155; pp. 42 - 54
Main Authors Zhang, Yan, Han, Yu-Lan
Format Journal Article
LanguageEnglish
Published Elsevier Inc 01.11.2019
Subjects
Online AccessGet full text
ISSN0749-5978
1095-9920
DOI10.1016/j.obhdp.2019.03.007

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Abstract •Paradoxical CEOs manages paradoxes by relating opposites directly.•Paradoxical CEOs address present–future and organization–environment paradoxes.•Long-term orientation, holistic thinking, environmental uncertainty are antecedents.•Profits, R&D investments, market share, corporate reputation are consequences.•Two quantitative studies are used to develop the new construct and test hypotheses. We analyze paradoxes embedded in long-term corporate development and conceptualize a new leadership approach: paradoxical leader behavior in long-term corporate development (PLB-CD). Paradoxical leader behaviors are characterized as seemingly both competing and interrelated. We posit that paradoxical leaders employ such behaviors to meet competing demands simultaneously and over time in the process of (a) maintaining both short-term efficiency and long-term development, (b) maintaining both organizational stability and flexibility, (d) focusing on both shareholders and stakeholder communities, and (d) conforming to and shaping collective forces in the environment. We conduct two studies with multiple samples to develop a measurement of PLB-CD. Our results demonstrate that long-term orientation is positively associated with paradoxical leader behavior, which in turn positively affects the increase of R&D investment, market share, and corporate reputation.
AbstractList •Paradoxical CEOs manages paradoxes by relating opposites directly.•Paradoxical CEOs address present–future and organization–environment paradoxes.•Long-term orientation, holistic thinking, environmental uncertainty are antecedents.•Profits, R&D investments, market share, corporate reputation are consequences.•Two quantitative studies are used to develop the new construct and test hypotheses. We analyze paradoxes embedded in long-term corporate development and conceptualize a new leadership approach: paradoxical leader behavior in long-term corporate development (PLB-CD). Paradoxical leader behaviors are characterized as seemingly both competing and interrelated. We posit that paradoxical leaders employ such behaviors to meet competing demands simultaneously and over time in the process of (a) maintaining both short-term efficiency and long-term development, (b) maintaining both organizational stability and flexibility, (d) focusing on both shareholders and stakeholder communities, and (d) conforming to and shaping collective forces in the environment. We conduct two studies with multiple samples to develop a measurement of PLB-CD. Our results demonstrate that long-term orientation is positively associated with paradoxical leader behavior, which in turn positively affects the increase of R&D investment, market share, and corporate reputation.
Author Zhang, Yan
Han, Yu-Lan
Author_xml – sequence: 1
  givenname: Yan
  surname: Zhang
  fullname: Zhang, Yan
  email: annyan.zhang@pku.edu.cn
  organization: School of Psychological and Cognitive Sciences and Beijing Key Laboratory of Behavior and Mental Health, Peking University, Yiheyuan Lu #5, Beijing 100871, China
– sequence: 2
  givenname: Yu-Lan
  surname: Han
  fullname: Han, Yu-Lan
  email: han.yulan@mail.shufe.edu.cn
  organization: College of Business, Shanghai University of Finance and Economics, 369 North Zhongshan 1 Rd., Shanghai 200083, China
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Keywords Leader behavior
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Snippet •Paradoxical CEOs manages paradoxes by relating opposites directly.•Paradoxical CEOs address present–future and organization–environment paradoxes.•Long-term...
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SubjectTerms Firm performance
Leader behavior
Long-term corporate development
Paradox management
Title Paradoxical leader behavior in long-term corporate development: Antecedents and consequences
URI https://dx.doi.org/10.1016/j.obhdp.2019.03.007
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