******ebook converter DEMO Watermarks******* Strategic Leadership ******ebook converter DEMO Watermarks******* STRATEGIC MANAGEMENT SERIES EDITORS Michael A. Hitt, R. Duane Ireland, and Robert E. Hoskisson Strategy as Action: Competitive Dynamics and Competitive Advantage Curtis M. Grimm, Hun Lee, and Ken G. Smith Global Strategy: Creating and Sustaining Advantage across Borders Andrew Inkpen and Kannan Ramaswamy Strategic Leadership: Theory and Research on Executives, Top Management Teams, and Boards Sydney Finkelstein, Donald C. Hambrick, and Albert A. Cannella Jr. ******ebook converter DEMO Watermarks******* Strategic Leadership Theory and Research on Executives, Top Management Teams, and Boards Sydney Finkelstein Donald C. Hambrick Albert A. Cannella Jr. ******ebook converter DEMO Watermarks******* Oxford University Press, Inc., publishes works that further Oxford University’s objective of excellence in research, scholarship, and education. Oxford New York Auckland Cape Town Dar es Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi Shanghai Taipei Toronto With offices in Argentina Austria Brazil Chile Czech Republic France Greece Guatemala Hungary Italy Japan Poland Portugal Singapore South Korea Switzerland Thailand Turkey Ukraine Vietnam Copyright © 2009 by Oxford University Press, Inc. Published by Oxford University Press, Inc. 198 Madison Avenue, New York, New York 10016 www.oup.com Oxford is a registered trademark of Oxford University Press. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Library of Congress Cataloging-in-Publication Data Finkelstein, Sydney. Strategic leadership : theory and research on executives, top management teams, and boards / Sydney Finkelstein, Donald C. Hambrick, Albert A. Cannella, Jr. p. cm. Includes bibliographical references and index. ISBN 978-0-19-516207-3 1. Leadership. 2. Strategic planning. 3. Management. I. Hambrick, Donald C. II. Cannella, Albert A. III. Title. HD57.7.F5559 2009 658.4′092—dc22 2008016591 9 8 7 6 5 4 3 2 1 Printed in the United States of America ******ebook converter DEMO Watermarks******* on acid-free paper ******ebook converter DEMO Watermarks******* We dedicate this book to our families. ******ebook converter DEMO Watermarks******* Preface It has been thirteen years since the first version of Strategic Leadership was published. In that time, there has been a veritable explosion of research on CEOs, top management teams, boards of directors, executive compensation, and related topics. In fact, the study of the top- most figures in organizations—the upper echelons of business enterprises—has been one of the most robust areas of inquiry in strategy and organization science for over two decades now. The field of strategy is about general management, and general management is about the intersection of major decisions and the people who make those decisions and otherwise define what an organization is and aspires to be—what we and others have called strategic leadership. While research on executives, top management teams, and boards has proceeded at breakneck speed—involving not only scholars in strategy and organization theory, but also in organizational behavior, psychology, sociology, economics, finance, and accounting—it seems an opportune time to take stock of where we have been and where we may be going. The purpose of this book is to do precisely that—to review and synthesize existing research, and to offer an agenda for further inquiry on this most central of topics in the field of strategy and organizations. We hope that this book, like its predecessor, will bring scholars important benefits. First, it is meant to be a reference book of the most consequential research in each of the topic areas that make up the domain of strategic leadership. As in our earlier version, we have not attempted to include every article or monograph in our review, as such an undertaking would be both unwieldy and unfocused. Instead, our goal has been to synthesize the key theoretical ideas and empirical findings in the literature without exhausting the reader with every possible citation. Of course, no doubt we have overlooked works that some might find helpful, but overall we have sought to identify and discuss each research topic in sufficient detail to provide readers with a reasonably complete understanding of the relevant literature. Second, we hope researchers will turn to this book not only for a meaningful review of past work, but for our interpretation of how this past work fits together as well. Our editorial views on the research record will be evident throughout, and while not all will agree with everything we suggest, compilation without comment is inevitably of only limited value. Indeed, true synthesis requires it. Third, we bring our point of view to bear especially in our suggestions for future work. We have organized each chapter by subtopics or major research questions, punctuated by propositions to spur further inquiry. While we have by no means set out to identify an exhaustive set of ideas for research, the propositions we have included represent important, and unanswered, research opportunities. Finally, we believe that there is value in bringing together a wide set of studies in one place, and thus offering scholars insights that might not be as forthcoming without such an anthology. Certainly the body of work in this book represents the most extensive consolidation of work on strategic leadership yet. Very often, when a researcher focuses on a specific research question, say on some aspect of executive compensation, it is not easy to see how it fits with the bigger picture; therefore, it is useful for all of us to step back at times to see how a narrow research question fits into the broader research base and conceptual themes of the domain of strategic leadership. ******ebook converter DEMO Watermarks******* This book would not have been possible without the support and encouragement of numerous people. Our editors at Oxford, Mike Hitt, Duane Ireland, and Bob Hoskisson, have been fans of this project from the start, and have stood by us as we waded through remarkably dense research literatures to try to deliver a crisp yet authoritative account of the field. Oxford University Press also deserves thanks for their support of this book, and their belief that the community of strategy and organization scholars would embrace our efforts. We are grateful to Deans Paul Danos at the Tuck School, Judy Olian and Jim Thomas at the Smeal College of Penn State, and Bob Mittelstaedt at Arizona State for creating the intellectual climate that supported this project, as well as for providing the time and resources needed for its completion. Our colleagues in each of our schools have been helpful throughout as well, and they deserve our deep thanks: Rich D’Aveni, Bill Joyce, Len Greenhalgh, Vijay Govindarajan, Connie Helfat, Aviad Pe’er, Margie Peteraf, Alva Taylor, and Judith White at Tuck; Arijit Chatterjee, Guoli Chen, Craig Crossland, Denny Gioia, Dave Harrison, Rajiv Nag, Tim Pollock, Linda Treviño, and Wenpin Tsai at Penn State; and Blake Ashforth, Amy Hillman, Carla Jones, Christine Shropshire, Anne Tsui, and Bob Hoskisson at Arizona State. Outside our respective educational institutions there have been many colleagues who have helped advance our thinking in consequential ways. At the risk of leaving out some of these deserving colleagues, we wish to recognize Warren Boeker, Brian Boyd, Mason Carpenter, Trevis Certo, Ming-Jer Chen, Catherine Dalton, Dan Dalton, Kathy Eisenhardt, Jim Fredrickson, Marta Geletkanycz, Luis Gomez-Mejia, Dawn Harris, Mat Hayward, Pam Haunschild, Andy Henderson, Nathan Hiller, Amy Hillman, Susan Jackson, Rakesh Khurana, Richard Lester, Mike Lubatkin, Ann McFadyen, Danny Miller, Frances Milliken, Vilmos Misangyi, Ann Murphy, Randall Peterson, Charles O’Reilly, Nandini Rajagopalan, Glenn Rowe, Gerry Sanders, Wei Shen, Ken Smith, Henry Tosi, Mike Tushman, Jim Wade, Jim Walsh, Andrew Ward, Noam Wasserman, Jim Westphal, Margarethe Wiersema, Dave Yermack, Tieying Yu, Ed Zajac, and Anthea Zhang. ******ebook converter DEMO Watermarks*******