||The Impact of CEO Authentic Leadership on Firm Innovation Capability: The Moderating Role of TMT Regional Identity and Mediating Role of Environmental Scanning Behavior
||The Impact of CEO Authentic Leadership on Firm Innovation Capability: The Moderating Role of TMT Regional Identity and Mediating Role of Environmental Scanning Behavior
||Institute of International Management
Environmental scanning behavior
Firm innovation capability
Top management team
Adopting a regional identity perspective, this study examined the influences of regional identity and CEO leadership behaviors on Top Management Team (TMT) dynamics and Firm Innovation Capability in regionally diverse organizational environment. With a large sample of responses of 111 Indian firms, our results were found to have largely conformed to our proposed hypotheses. Specifically, CEO authentic leadership exerts a positive effect on TMT behavioral integration which in turn positively influences TMT resilience capability, and finally advance firm innovation capability. More importantly, TMTs that were diverse in terms of region negatively moderates the relationship between CEO authentic leadership and TMT behavioral integration. Also, the path between CEO Authentic leadership and Firm Innovation Capability is also supported. Similarly, TMT environmental scanning behavior mediates the relationship between CEO authentic leadership and Firm innovation capability. Our study reveals the significance of the CEO-TMT interface that is required for enhancing firm innovation capability under regionally diverse environment.
TABLE OF CONTENTS III
LIST OF TABLES VI
LIST OF FIGURES I
CHAPTER ONE INTRODUCTION 1
1.1 Research Background. 1
1.2 Research Objectives. 17
1.3 Research Questions. 18
1.4 Scope of the Research. 18
1.5 Research Procedure. 18
CHAPTER TWO LITERATURE REVIEW 20
2.1 Definition of Relevant Research Constructs. 20
2.1.1 CEO Authentic Leadership. 20
2.1.2 TMT Behavioral Integration. 23
2.1.3 TMT Resilience Capacity. 24
2.1.4 Firm Innovation Capability. 25
2.1.5 TMT Regional Identity. 27
2.1.6 TMT Environmental Scanning Behavior. 31
2.2 Theoretical Foundation. 32
2.2.1 Upper Echelon Theory. 32
2.2.2 Social Exchange Theory. 33
2.2.3 Social Learning Theory. 34
2.2.4 Broaden-and-Build Theory. 35
2.3 Hypotheses Development. 36
2.3.1 CEO Authentic Leadership and TMT Behavioral Integration. 36
2.3.2 TMT Behavioral Integration and TMT Resilience. 38
2.3.3 TMT Resilience and Firm Innovation Capability. 40
2.3.4 CEO Authentic Leadership and Firm Innovation Capability. 42
2.3.5 Moderating Role of TMT Regional Identity. 44
2.3.6 Mediating Role of TMT Environmental Scanning Behavior. 46
CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 48
3.1 Conceptual Model. 48
3.2 Summary of Hypotheses. 49
3.3 Sample and Data Collection. 50
3.4 The Construct Measurements. 51
3.4.1 TMT Regional Identity. 51
3.4.2 Team Behavioral Integration. 52
3.4.3 TMT Resilience Capability. 52
3.4.4 Firm Innovation Capability. 53
3.4.5 CEO Authentic Leadership. 54
3.4.6 TMT Environmental Scanning Behavior. 55
3.4.7 TMT Hypocrisy. 55
3.5 Control Variables. 56
3.6 Data Analysis Procedures. 57
3.6.1 Descriptive Statistical Analysis. 57
3.6.2 Confirmatory Factor Analysis. 58
3.6.3 Reliability Test. 58
3.6.4 Pearson Correlation Analysis. 58
3.6.5 Structural Equations Modeling (Wiersema & Bantel). 59
3.6.7 Common Method Variance. 59
CHAPTER FOUR RESEARCH RESULTS 60
4.1 Descriptive Data Analysis. 60
4.2 Confirmatory Factor Analysis (CFA). 63
4.3. Pearson Correlation. 75
4.4 Reliability Test. 77
4.5 Structural Equation Model (SEM). 77
CHAPTER FIVE CONCLUSION AND SUGGESTIONS 82
5.1 Research Conclusions. 82
5.2 Theoretical Contributions. 83
5.3 Managerial Contribution and Implications. 87
5.4 Research Limitations and Future Directions. 87
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