Do Humble CEOs Matter? An Examination of CEO Humility and Firm Outcomes

We propose a mediation model to explain the relationship between CEO humility and firm performance. Building on upper echelons, power, and paradox theories, we hypothesize that when a more humble CEO leads a firm, its top management team (TMT) is more likely to collaborate, share information, jointl...

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Bibliographic Details
Published in:Journal of management 2018-03, Vol.44 (3), p.1147-1173
Main Authors: Ou, Amy Y., Waldman, David A., Peterson, Suzanne J.
Format: Article
Language:English
Subjects:
Chief executive officers
Chief executives
Corporate management
Financial performance
Handedness
Mediation
Organizational performance
Power
Teams
Top management
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Summary:We propose a mediation model to explain the relationship between CEO humility and firm performance. Building on upper echelons, power, and paradox theories, we hypothesize that when a more humble CEO leads a firm, its top management team (TMT) is more likely to collaborate, share information, jointly make decisions, and possess a shared vision. The firm will also tend to have lower pay disparity between the CEO and the TMT. The humble CEO and TMT, in turn, will be more likely to adopt an ambidextrous strategic orientation, which will be associated with stronger firm performance. We tested the model by using both survey and archival data that were collected at multiple time points from 105 small-to-medium-sized firms in the computer software and hardware industry in the United States. Findings largely support our theoretical assertions, suggesting that CEO humility has important implications for firm processes and outcomes.
ISSN:0149-2063
1557-1211
DOI:10.1177/0149206315604187