Cover Image

Does CEO power matter for the performance of retrenchment strategy?

Purpose – This research aims to examine the moderating role of CEO power on the relationship between retrenchment strategy and firm performance by framing the relationship under an agency theory, and power circulation theory. Design/methodology/approach – This study focuses on a sample of 319 non...

Full description

Saved in:
Bibliographic Details
Main Authors: Brahmana, Rayenda Khresna, You, Hui Wei, Kontesa, Maria
Format: Article
Language:English
Published: Emerald Publishing Limited 2020
Subjects:
HD28 Management. Industrial Management
HG Finance
Online Access:http://ir.unimas.my/id/eprint/31607/1/Does%20CEO%20power%20matter%20for%20the%20performance%20of%20retrenchment%20strategy.pdf
http://ir.unimas.my/id/eprint/31607/
https://www.emerald.com/insight/content/doi/10.1108/JSMA-10-2019-0186/full/html
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.unimas.ir.31607
record_format eprints
spelling my.unimas.ir.316072020-09-07T02:07:16Z http://ir.unimas.my/id/eprint/31607/ Does CEO power matter for the performance of retrenchment strategy? Brahmana, Rayenda Khresna You, Hui Wei Kontesa, Maria HD28 Management. Industrial Management HG Finance Purpose – This research aims to examine the moderating role of CEO power on the relationship between retrenchment strategy and firm performance by framing the relationship under an agency theory, and power circulation theory. Design/methodology/approach – This study focuses on a sample of 319 non-financial public listed companies in Malaysia from the year 2011–2016 and estimates the model under two-step GMM panel regression to eliminate the endogeneity issue. Findings – The results show that the retrenchment strategy increased firm performance. Meanwhile, greater CEO power changes that retrenchment effect into increased performance. This study also indicates the CEO power strengthens the relationship between firm performance and retrenchment. However, CEO power does not have any effect on the performance of low retrenchment, and the performance of big firm size. Research limitations/implications – The findings show that the higher CEO power cause higher firm performance and higher retrenchment. This research suggests that CEO power can make retrenchment strategy works and the decision made can affect the firm performance significantly. Originality/value – This study examines the effect of CEO power on the performance of retrenchment strategy implementation by contesting agency theory, power circulation theory, and resource-based view theory within the emerging country context Emerald Publishing Limited 2020 Article PeerReviewed text en http://ir.unimas.my/id/eprint/31607/1/Does%20CEO%20power%20matter%20for%20the%20performance%20of%20retrenchment%20strategy.pdf Brahmana, Rayenda Khresna and You, Hui Wei and Kontesa, Maria (2020) Does CEO power matter for the performance of retrenchment strategy? Journal of Strategy and Management, 13 (4). pp. 1-18. ISSN 1755-425X https://www.emerald.com/insight/content/doi/10.1108/JSMA-10-2019-0186/full/html 10.1108/JSMA-10-2019-0186
institution Universiti Malaysia Sarawak
building Centre for Academic Information Services (CAIS)
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sarawak
content_source UNIMAS Institutional Repository
url_provider http://ir.unimas.my/
language English
topic HD28 Management. Industrial Management
HG Finance
spellingShingle HD28 Management. Industrial Management
HG Finance
Brahmana, Rayenda Khresna
You, Hui Wei
Kontesa, Maria
Does CEO power matter for the performance of retrenchment strategy?
description Purpose – This research aims to examine the moderating role of CEO power on the relationship between retrenchment strategy and firm performance by framing the relationship under an agency theory, and power circulation theory. Design/methodology/approach – This study focuses on a sample of 319 non-financial public listed companies in Malaysia from the year 2011–2016 and estimates the model under two-step GMM panel regression to eliminate the endogeneity issue. Findings – The results show that the retrenchment strategy increased firm performance. Meanwhile, greater CEO power changes that retrenchment effect into increased performance. This study also indicates the CEO power strengthens the relationship between firm performance and retrenchment. However, CEO power does not have any effect on the performance of low retrenchment, and the performance of big firm size. Research limitations/implications – The findings show that the higher CEO power cause higher firm performance and higher retrenchment. This research suggests that CEO power can make retrenchment strategy works and the decision made can affect the firm performance significantly. Originality/value – This study examines the effect of CEO power on the performance of retrenchment strategy implementation by contesting agency theory, power circulation theory, and resource-based view theory within the emerging country context
format Article
author Brahmana, Rayenda Khresna
You, Hui Wei
Kontesa, Maria
author_facet Brahmana, Rayenda Khresna
You, Hui Wei
Kontesa, Maria
author_sort Brahmana, Rayenda Khresna
title Does CEO power matter for the performance of retrenchment strategy?
title_short Does CEO power matter for the performance of retrenchment strategy?
title_full Does CEO power matter for the performance of retrenchment strategy?
title_fullStr Does CEO power matter for the performance of retrenchment strategy?
title_full_unstemmed Does CEO power matter for the performance of retrenchment strategy?
title_sort does ceo power matter for the performance of retrenchment strategy?
publisher Emerald Publishing Limited
publishDate 2020
url http://ir.unimas.my/id/eprint/31607/1/Does%20CEO%20power%20matter%20for%20the%20performance%20of%20retrenchment%20strategy.pdf
http://ir.unimas.my/id/eprint/31607/
https://www.emerald.com/insight/content/doi/10.1108/JSMA-10-2019-0186/full/html
_version_ 1677785540738416640
score 13.211869

Similar Items