The Impact of Leader Experience on Organizational Success Master Thesis

ALL ABOUT THE COACH - THE IMPACT OF LEADER EXPERIENCE ON ORGANIZATIONAL SUCCESS Felix Anton RHOMBERG Student registration number: 01515047 Strategic Management MASTER THESIS Submitted in partial fulfillment of the requirements for the degree in Strategic Management At the Leopold-Franzens-Universität Innsbruck Supervisor: Univ.-Prof. Mag. Mag. Dr. Julia Rapp-Hautz Department of Strategic Management, Marketing, and Tourism Innsbruck, 25.05.2021 I. Abstract Over the last four decades, there has been a growing body of literature on the Upper Echelons Theory. Research in the field has found a plethora of CEO characteristics which influence firm performance. However, there is still scant knowledge about the different types of CEO experience. To analyze the influence of leaders' experience on organizational performance, this master thesis uses a dataset consisting of soccer coaches in the top10 soccer leagues of Europe over ten consecutive seasons. The results show that a diverse career path within the organization improves team performance, whereas longer CEO organizational job tenure leads to decreased team performance. I II. Table of content I. Abstract .............................................................................................................................. I II. Table of content ............................................................................................................... II III. List of figures .................................................................................................................. IV IV. List of tables ..................................................................................................................... V V. List of Abbreviations ...................................................................................................... VI 1. Introduction ....................................................................................................................... 1 1.1. Research Gap ................................................................................................. 1 1.2. Method ........................................................................................................... 2 1.3. Structure of the master thesis ......................................................................... 3 2. Upper Echelons Theory .................................................................................................... 4 2.1. Types of characteristics.................................................................................. 7 2.1.1. Observable characteristics .......................................................................... 8 2.1.2. Underlying characteristics .......................................................................... 9 2.1.3. Interactions with others ............................................................................. 10 2.2. Levels of influences ..................................................................................... 10 2.3. CEO experience ........................................................................................... 11 2.4. CEO experience in Upper Echelons Theory ................................................ 14 2.4.1. CEO age .................................................................................................... 20 2.4.2. CEO tenure ............................................................................................... 21 2.4.3. CEO prior career path ............................................................................... 24 2.5. Sport industry ............................................................................................... 27 3. Hypothesis development ................................................................................................. 29 3.1. Amount ........................................................................................................ 29 3.2. Time ............................................................................................................. 30 3.3. Type ............................................................................................................. 31 4. Empirical Research ......................................................................................................... 33 4.1. Data collection. ............................................................................................ 33 4.2. Sample description ....................................................................................... 34 4.3. Research model ............................................................................................ 37 II 4.4. Measurements .............................................................................................. 40 4.4.1. Dependent variable ................................................................................... 40 4.4.2. Independent variables ............................................................................... 41 4.4.3. Control variables ....................................................................................... 44 4.4.4. Correlation after Pearson .......................................................................... 46 5. Data analysis ................................................................................................................... 48 5.1. Regression analysis ...................................................................................... 48 5.2. Summary of results ...................................................................................... 51 6. Discussion ....................................................................................................................... 55 6.1. Implications.................................................................................................. 55 6.2. Limitation and further research suggestions ................................................ 61 7. Conclusions ..................................................................................................................... 67 I. References .......................................................................................................................... I II. Appendix ....................................................................................................................... XII II.I. Web scraping code used in R ..................................................................... XII II.II. List of all observed coaches ................................................................... XLIX III. Affidavit ....................................................................................................................... LIV III III. List of figures Figure 1: Structure of this master thesis; Source: Own elaboration ........................................... 3 Figure 2: Strategic Choice Under Conditions of Bounded Rationality; Source: Hambrick & Mason (1984) p. 195 .................................................................................................................. 5 Figure 3: An Upper Echelons Perspective of Organizations; Source: Hambrick & Mason (1984) p. 198 .......................................................................................................................................... 6 Figure 4: An Updated Upper Echelons Research Perspective; Source: Bromiley & Rau (2016) p. 177 .......................................................................................................................................... 7 Figure 5: A Conceptual Framework of Work Experience Measures; Source: Quinones et al. (1995) p. 892 ............................................................................................................................ 13 Figure 6: Research model; Source: Own elaboration ............................................................... 40 Figure 7: Breusch and Pagagan Lagrange Multiplier Test; Source: Own elaboration ............. 49 Figure 8: Hausman Test; Source: Own elaboration ................................................................. 49 IV IV. List of tables Table 1: An integrated framework of work experience; Source: Quinones et al. (1995) and Tesluk and Jacobs (1998) ......................................................................................................... 14 Table 2: Summarizing table of research in the are of CEOs’ prior work experience; Source: Own elaboration ....................................................................................................................... 19 Table 3: Summary of league attributes; Source: Own elaboration based on the dataset gathered from transfermarkt.de ............................................................................................................... 35 Table 4: Summary of team attributes; Source: Own elaboration based on the dataset gathered from transfermarkt.de ............................................................................................................... 36 Table 5: Summary of coach attributes; Source: Own elaboration based on the dataset gathered from transfermarkt.de ............................................................................................................... 37 Table 6: Work experience framework related to this master thesis; Source: Own elaboration based on the dataset gathered from transfermarkt.de ............................................................... 39 Table 7: Correlation matrix; Source: Own elaboration ...........................................................

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