In modern companies, the role of the CEO is increasing constantly. That role and their leadership are becoming more and more important every day. Especially, in case of small to medium size companies, the role and character of the CEO have a great inf...
In modern companies, the role of the CEO is increasing constantly. That role and their leadership are becoming more and more important every day. Especially, in case of small to medium size companies, the role and character of the CEO have a great influence on the strategy type and performance of the firm. With the growing competition in global economy, the need to choose a relevant competitive strategy to continuously improve business performance has been greater. CEOs in small and medium-sized manufacturing firms need to be on a constant lookout for a relevant strategy to make some institutional arrangements in maximizing their business performance.
The purpose of this study is summarized as accordingly presented;
First, to examine CEO characteristics, strategy type and business performance
Second, to establish the research model based on past research.
Third, to verify research hypotheses empirically.
Fourth, to elicit factors to improve the performance of the small to medium size companies
The following hypotheses are set up for the research objectives. The multi-regression analysis is used to verify hypothesis.
Results of this study :
First, some sub-hypothesis of hypothesis 1 are accepted and others are denied. It shows that psychological characteristic of CEO had a significant effect on the Prospector, Analyser and Defender strategies, however motivation of achievement didn't have a significant effect on Defender strategies.
Second, some sub-hypothesis of hypothesis 2 are accepted and others are denied. It shows that decision-making competencies of CEO had a significant effect on the Prospector, Analyser and Defender strategies and communication competencies of CEO had a significant effect on the Prospector and Analyser strategies.
Third, some sub-hypothesis of hypothesis 3 are accepted and others are denied. It shows that the Analyser and Defender strategies had a significant effect on business performance.
Fourth, some sub-hypothesis of hypothesis 4 are accepted. It shows that psychological characteristic of CEO had a significant effect on business performance.
Fifth, some sub-hypothesis of hypothesis 5 are accepted and others are denied. It shows that decision-making competencies and communication competencies of CEO had a significant effect on business performance.
This paper examines the extent to which certain characteristics of the CEO are related to specific strategic decision-making behaviour.
Implications of this study are following.
First, this study shows that strategic choices and performance levels are partially predicted by top management background characteristics. Also found that CEO characteristics are linked to the CEOs' propensity to change corporate strategy.
Second, this study shows that the role of the chief executive in the smaller firm is more significant as he/she is the controlling influence with regard to decisions and strategy.
Limitations of this study are following :
First, it was difficult to achieve a truly representative sample(that is, public and private sector balanced approach, gender, age and industry type) in a population base the size of Korea.
Second, we was dependent on the horizontal method. So it's difficult to expect the future based on the trend of past and present time.
Third, we used only questionnaires to collect the basic data, so it's hard to do the research objectively. So face-to face interview is needed to overcome the limitation of questionnaire.