<p>This study examines the impact of CEO organizational identification on strategic change. While strategic change can enhance firm performance and align with highly identified CEOs’ desire for self-esteem and reputational gains, such CEOs may hesitate to pursue change due to two primary concerns: (a) the fear that unfavorable outcomes could damage their self-esteem and (b) the risk that change could destabilize the organization’s existing identity, undermining their need for continuity. We theorize that the effect of CEO organizational identification on strategic change is contingent on three factors: CEOs’ <i>awareness</i> (A) of the risks associated with change, their <i>motivation</i> (M) to enhance self-esteem and reputation through change, and their firms’ <i>capability</i> (C) to implement change successfully. Using a unique dataset that integrates archival data with primary survey responses from a large sample of CEOs at publicly listed firms, we find empirical support for our theoretical framework. This study contributes to the literature on organizational identification by demonstrating how awareness, motivation, and capability (AMC) jointly shape the relationship between CEO identification and strategic change..</p>

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CEO organizational identification and firm strategic change: an AMC framework

  • Weiwen Li,
  • Xiwen Kang,
  • Ai He,
  • Meihua Zhou

摘要

This study examines the impact of CEO organizational identification on strategic change. While strategic change can enhance firm performance and align with highly identified CEOs’ desire for self-esteem and reputational gains, such CEOs may hesitate to pursue change due to two primary concerns: (a) the fear that unfavorable outcomes could damage their self-esteem and (b) the risk that change could destabilize the organization’s existing identity, undermining their need for continuity. We theorize that the effect of CEO organizational identification on strategic change is contingent on three factors: CEOs’ awareness (A) of the risks associated with change, their motivation (M) to enhance self-esteem and reputation through change, and their firms’ capability (C) to implement change successfully. Using a unique dataset that integrates archival data with primary survey responses from a large sample of CEOs at publicly listed firms, we find empirical support for our theoretical framework. This study contributes to the literature on organizational identification by demonstrating how awareness, motivation, and capability (AMC) jointly shape the relationship between CEO identification and strategic change..