CEO burnout, managerial discretion, and firm performance: The role of CEO locus of control, structural power, and organizational factors

Charlotta Sirén, Pankaj C. Patel, Daniel Örtqvist, Joakim Wincent

Research output: Contribution to journalArticleScientificpeer-review

8 Citations (Scopus)

Abstract

Despite the possibility of burnout resulting from dynamics in firms' upper echelons, little if any work has focused on chief executive officer's (CEO's) burnout and firm performance. Drawing on managerial discretion theory, this article analyzes the influence of CEO burnout on firm performance and the moderating roles of the individual (CEO locus of control), structural power (CEO duality and CEO tenure), and organizational characteristics (size, age, and resource availability) related to managerial discretion. Using a sample of 156 CEOs in Swedish firms, we find a negative association between CEOs who report higher burnout and firm performance. Our results confirm that CEO duality and resource availability ameliorate and firm size exacerbates the negative association between CEO burnout and firm performance. Contrary to our expectations, CEO locus of control, CEO tenure, and firm age do not influence this relationship. We discuss the implications of our research for upper echelons theory and strategic leadership theory.
Original languageEnglish
Peer-reviewed scientific journalLong Range Planning
Volume51
Issue number6
Pages (from-to)953-971
Number of pages19
ISSN0024-6301
DOIs
Publication statusPublished - 23.05.2018
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management

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