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. 2022;74(4):659-693.
doi: 10.1007/s41471-022-00145-9. Epub 2022 Nov 18.

A CEO's Future Temporal Depth and Organizational Resilience

Maximilian Weis  1 , Patricia Klarner  1
Affiliations

A CEO's Future Temporal Depth and Organizational Resilience

Maximilian Weis et al. Schmalenbach Z Betriebswirtsch Forsch. 2022.

Abstract

Scholars have long investigated the organizational antecedents of resilience, but less is known about CEO-level antecedents. This is surprising, since upper echelons research suggests that a CEO influences major firm decisions. Addressing this gap in our knowledge, we suggest that a CEO prepares for and adjusts to unexpected events in the environment on the basis of the individual future temporal depth (FTD). It reflects the temporal distance into the future that a CEO usually takes into consideration when contemplating future events. Our study of CEOs of 462 S&P500 firms during the Global Financial Crisis and the COVID-19 pandemic shows that a CEO's longer FTD is associated with less severe economic losses but with a longer recovery time from adversity. If such a CEO can draw on a functionally diverse TMT, the losses are less severe, while prior organizational crisis experience reduces the recovery time. Our paper contributes to organizational resilience research by uncovering its cognitive underpinnings and offering a contextual learning perspective on organizational resilience. We also contribute to upper echelons research by unveiling a CEO's role in preparing for and adjusting to adversity.

Keywords: CEO temporal cognition; Organizational crisis; Organizational resilience; Upper Echelons.

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Conflict of interest statement

Conflict of interestM. Weis and P. Klarner declare that they have no competing interests.

Figures

Fig. 1
Fig. 1
Marginal Effects of CEO FTD with 95% Confidence Intervals. The horizontal line represents the value 0. The vertical lines represent the 95% confidence interval for any given marginal effect
Fig. 2
Fig. 2
Adjusted Predications of Organizational Crisis Experience with 95% Confidence Intervals
See this image and copyright information in PMC

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