Table Of ContentCEOs’ Personality and Abilities matter:
Their Influence on SME Behavior and Performance
D I S S E R T A T I O N
of the University of St. Gallen
School of Management,
Economics, Law, Social Sciences
and International Affaires
to obtain the title of
Doctor of Philosophy in Management
submitted by
Dominik Burger
from
Austria
Approved on the application of
Prof. Dr. Urs Fueglistaller
and
Prof. Dr. Christian Belz
Dissertation no. 4584
Difo-Druck GmbH, Bamberg 2017
The University of St. Gallen, School of Management, Economics, Law, Social
Sciences and International Affairs hereby consents to the printing of the present
dissertation, without hereby expressing any opinion on the views herein expressed.
St. Gallen, October 24, 2016
The President:
Prof. Dr. Thomas Bieger
Acknowledgments I
Acknowledgments
First of all, I thank my referee, Urs Fueglistaller, for giving me the chance to write my
dissertation at an inspiring and pleasant work environment, for supporting my interest
in psychology of entrepreneurship, and for having regular discussions on my work. I
also thank my co-referee, Christian Belz, for his helpful comments on the second
paper of my dissertation throughout the process.
Furthermore, I would like to thank my colleagues, especially Alexander Fust, who
acted as my mentor, and Michael Gasda and Philipp Sieger for numerous research
talks stimulating my research.
My special thanks go to my parents who always supported my sister, my brother,
and me in our adventures, and continue to do so to date. I dedicate my dissertation to
them.
Hard (Vorarlberg), 2nd August 2016 Dominik Burger
II Table of Content
Table of Content
Acknowledgments ....................................................................................................................... I
Table of Content ......................................................................................................................... II
List of Figures .......................................................................................................................... VI
List of Tables ........................................................................................................................... VII
List of Abbreviations ............................................................................................................. VIII
Abstract ..................................................................................................................................... X
Zusammenfassung .................................................................................................................... XI
1. Introduction ..................................................................................................................... 1
1.1. Topic and Structure of the Cumulative Dissertation ........................................................ 1
1.2. Terms and Definitions ...................................................................................................... 2
1.2.1. Small and Medium-Sized Enterprises (SMEs) ..................................................... 2
1.2.2. CEOs’ Regulatory Focus and Empathy ................................................................ 3
1.2.2.1. CEOs’ Regulatory Focus ........................................................................ 3
1.2.2.2. CEOs’ Empathy ...................................................................................... 5
1.2.3. SMEs’ Exploration, Exploitation, and Performance ............................................. 7
1.3. Research Gaps and Questions ........................................................................................... 8
2. Overview of the three Dissertation Papers ................................................................. 11
2.1. Methodological and Analytical Approach ...................................................................... 11
2.2. Key Characteristics of the three Dissertation Papers ...................................................... 12
3. Exploration and Exploitation in Established SMEs: The Effect of
CEOs’ Regulatory Focus (Paper 1) ............................................................................. 15
3.1. Abstract ........................................................................................................................... 15
3.2. Executive Summary ........................................................................................................ 15
3.3. Introduction ..................................................................................................................... 17
3.4. Theoretical Foundations and Development of Hypotheses ............................................ 19
3.4.1. CEOs’ Regulatory Focus .................................................................................... 19
3.4.2. CEOs’ Regulatory Focus and its Effect on Exploration and Exploitation .......... 21
3.4.2.1. CEOs’ Promotion Focus and its Effect on Exploration and Exploitation ....... 23
3.4.2.2. CEOs’ Prevention Focus and its Effect on Exploration and Exploitation ...... 25
Table of Content III
3.4.3. Moderating Effects of Competitive Intensity ...................................................... 26
3.4.3.1. Competitive Intensity, Promotion Focus, and Exploration/Exploitation ........ 28
3.4.3.2. Competitive Intensity, Prevention Focus, and Exploration/Exploitation ....... 29
3.5. Methodology ................................................................................................................... 31
3.5.1. Sample and Data Collection ................................................................................ 31
3.5.1.1. Representativeness .......................................................................................... 31
3.5.1.2. Key Informant Approach and Retrospective Bias .......................................... 33
3.5.1.3. Non-Response Bias ......................................................................................... 33
3.5.1.4. Common Method Bias .................................................................................... 34
3.5.2. Measures ............................................................................................................. 35
3.5.2.1. Dependent Variables ....................................................................................... 35
3.5.2.2. Independent Variables .................................................................................... 36
3.5.2.3. Moderator Variable ......................................................................................... 36
3.5.2.4. Control Variables ............................................................................................ 36
3.6. Analyses .......................................................................................................................... 38
3.6.1. Descriptives ......................................................................................................... 38
3.6.2. Regression Models .............................................................................................. 40
3.6.3. Regression Results .............................................................................................. 40
3.6.4. Robustness Checks .............................................................................................. 43
3.6.5. Post-Hoc Test: Interactive Effects of Promotion and Prevention Focus ............ 46
3.7. Discussion ....................................................................................................................... 48
3.8. Limitations and Future Research .................................................................................... 52
3.9. Managerial Implications ................................................................................................. 53
3.10. Conclusion ...................................................................................................................... 54
3.11. Appendix ......................................................................................................................... 55
4. CEO-Customer Interactions in SMEs: A Research Agenda on
Antecedents, Outcomes, and Moderators of CEO Empathy (Paper 2) ................... 57
4.1. Abstract ........................................................................................................................... 57
4.2. Introduction ..................................................................................................................... 57
4.3. Conceptualization of CEO Empathy ............................................................................... 59
4.4. Methodology ................................................................................................................... 60
4.4.1. Approach ............................................................................................................. 60
4.4.2. Analyses .............................................................................................................. 64
IV Table of Content
4.5. Results of the Systematic Literature Review .................................................................. 65
4.5.1. Characteristics of the Articles Reviewed ............................................................ 76
4.5.1.1. Definition and Measurement of Empathy ....................................................... 76
4.5.1.2. Data Collection Method .................................................................................. 76
4.5.1.3. Sample: Informants and Sample Size ............................................................. 77
4.5.1.4. Industry Context ............................................................................................. 77
4.5.1.5. Firm Type ....................................................................................................... 77
4.5.1.6. Analytical Approach ....................................................................................... 78
4.5.2. Key Findings of the Articles Reviewed .............................................................. 78
4.5.2.1. Antecedents of Salespersons’ Empathy .......................................................... 78
4.5.2.2. Outcomes of Salespersons’ Empathy ............................................................. 79
4.5.2.3. Moderators of Salespersons’ Empathy ........................................................... 80
4.5.2.4. Salespersons’ Empathy as Moderator ............................................................. 81
4.6. Discussion ....................................................................................................................... 82
4.7. Research Agenda on CEOs’ Empathy in the Context of SMEs ..................................... 84
4.8. Limitations ...................................................................................................................... 88
4.9. Managerial Implications ................................................................................................. 88
4.10. Conclusion ...................................................................................................................... 89
4.11. Appendix ......................................................................................................................... 90
5. CEO Regulatory Focus and SME Performance: The Mediating Role of
Empathy (Paper 3) ........................................................................................................ 93
5.1. Abstract ........................................................................................................................... 93
5.2. Introduction ..................................................................................................................... 93
5.3. Theoretical Framework and Research Hypotheses ......................................................... 95
5.3.1. CEOs’ Regulatory Focus .................................................................................... 95
5.3.2. CEOs’ Empathy .................................................................................................. 97
5.3.3. CEOs’ Regulatory Focus and its Effect on their Empathy ................................. 99
5.3.3.1. CEOs’ Promotion Focus and its Effect on their Empathy .............................. 99
5.3.3.2. CEOs’ Prevention Focus and its Effect on their Empathy ............................ 100
5.3.4. CEOs’ Empathy and its Effect on Firm Performance ....................................... 102
5.3.5. CEOs’ Empathy and its Mediating Effects ....................................................... 102
Table of Content V
5.4. Methodology ................................................................................................................. 103
5.4.1. Sample and Data Collection .............................................................................. 103
5.4.1.1. Non-Response Bias ....................................................................................... 104
5.4.1.2. Common Method Bias .................................................................................. 104
5.4.2. Measures ........................................................................................................... 105
5.4.2.1. Dependent Variable ...................................................................................... 105
5.4.2.2. Independent Variables .................................................................................. 105
5.4.2.3. Mediator Variable ......................................................................................... 106
5.4.2.4. Individual Control Variables ........................................................................ 107
5.4.2.5. Firm Control Variables ................................................................................. 107
5.5. Analyses ........................................................................................................................ 107
5.5.1. Statistical Procedures ........................................................................................ 107
5.5.2. Results ............................................................................................................... 108
5.5.3. Robustness Checks ............................................................................................ 113
5.6. Discussion ..................................................................................................................... 114
5.7. Limitations and Future Research .................................................................................. 115
5.8. Managerial Implications ............................................................................................... 116
5.9. Conclusion .................................................................................................................... 117
5.10. Appendix ....................................................................................................................... 118
6. Concluding Chapter ................................................................................................... 121
6.1. Revisiting the Research Questions of the Cumulative Dissertation ............................. 121
6.2. Theoretical Contributions ............................................................................................. 124
6.3. Practical Contributions ................................................................................................. 125
6.4. Limitations and Future Research .................................................................................. 126
6.5. Conclusion .................................................................................................................... 129
References .............................................................................................................................. 131
Curriculum Vitae .................................................................................................................... 159
VI List of Figures
List of Figures
Figure 1. Theoretical Framework of the Cumulative Dissertation ......................................... 13
Figure 2. Interaction Effects (Paper 1) .................................................................................... 43
Figure 3. Post-Hoc Analyses (Paper 1) ................................................................................... 47
Figure 4. Salesperson Empathy Research: Time Trend in Number of Articles (Paper 2) ...... 66
Figure 5. A Framework of Extant Research on Salespersons’ Empathy (Paper 2) ................ 78
Figure 6. A Framework for Future Research on SME CEO’s Empathy with
Customers (Paper 2) ................................................................................................ 84
Figure 7. Expected Theoretical Relationships (Paper 3) ......................................................... 95
Figure 8. Relationships Found (Paper 3) ............................................................................... 113
Figure 9. Future Research Directions suggested by the three Dissertation Papers ............... 128
List of Tables VII
List of Tables
Table 1. Structure of the Cumulative Dissertation .................................................................. 2
Table 2. Dimensions of Regulatory Focus ............................................................................... 4
Table 3. Dimensions of Empathy ............................................................................................ 6
Table 4. Research Questions of the Cumulative Dissertation ............................................... 10
Table 5. Key Characteristics of the three Dissertation Papers ............................................... 14
Table 6. Sample Characteristics (Paper 1) ............................................................................. 32
Table 7. Descriptives and Variable Correlations (Paper 1) ................................................... 39
Table 8. Regression Models of Exploration and Exploitation (Paper 1) ............................... 42
Table 9. Regression Models of Ambidexterity (Paper 1) ...................................................... 45
Table 10. Contrast Tests: Exploration (Paper 1) ...................................................................... 47
Table 11. Contrast Tests: Exploitation (Paper 1) ..................................................................... 48
Table 12. Regulatory Focus Questionnaire Scale (Paper 1) .................................................... 55
Table 13. Scale for Exploration and Exploitation (Paper 1) .................................................... 55
Table 14. Competitive Intensity Scale (Paper 1) ..................................................................... 56
Table 15. Stages and Choices in the SLR Process (Paper 2) ................................................... 62
Table 16. Summary and Results of the Search Filters used in the Databases ABI and
EBSCO (Paper 2) ..................................................................................................... 63
Table 17. Journals included in the SLR (Paper 2) ................................................................... 64
Table 18. Thematic Reading Guide used for Articles included in the SLR (Paper 2) ............. 65
Table 19. Articles included in the SLR: Characteristics and Key Findings (Paper 2) ............ 67
Table 20. Articles not included in the SLR: Reasons for Exclusion (Paper 2) ........................ 90
Table 21. Distribution of the Number of Employees (Paper 3) ............................................. 104
Table 22. Reliabilities, Descriptives, and Variable Correlations (Paper 3) ........................... 109
Table 23. Regression Models of Empathy and Firm Performance (Paper 3) ........................ 112
Table 24. Bootstrapped Indirect Effects of Promotion and Prevention Focus on
Firm Performance (via Empathy) (Paper 3) .......................................................... 113
Table 25. Firm Performance Scale (Paper 3) ......................................................................... 118
Table 26. Regulatory Focus Questionnaire Scale (Paper 3) .................................................. 118
Table 27. Empathy Scale (Paper 3) ....................................................................................... 119
Table 28. Revisiting and Answering the Research Questions of the
Cumulative Dissertation ........................................................................................ 123
Description:CEOs' Personality and Abilities matter: Their Influence on SME Behavior and Performance . Key Characteristics of the three Dissertation Papers .
