The Impact of CEO Regulatory Focus on the Adoption of Management Control Systems in Early-Stage Firms

Jennifer M. Cainas
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Abstract

Regulatory focus theory suggests that individuals tend to self-regulate through either a promotion focus or a prevention focus. A promotion-focused individual has an eagerness strategy, concerned with advancement and growth. A prevention-focused individual has a vigilance strategy, concerned with security and stability. I examine how the CEO’s regulatory focus impacts the mean adoption time of a formalized management control system (MCS) for early-stage firms. I posit that promotion-focused CEOs adopt MCS faster than prevention-focused CEOs, although the difference in adoption rate will be eliminated by the presence of outsider funding (equity or debt). I test the hypothesis using data from a field survey that resulted in a 2 x 2 between-subjects design. As predicted, there is no difference in the mean adoption time for promotion and prevention-focused CEOs when outsider funding is present, suggesting outsider funding mitigates a prevention-focused CEO’s cautious tendency when allocating resources to implement new control systems.
首席执行官监管焦点对早期公司采用管理控制系统的影响
调节焦点理论认为,个体倾向于通过促进焦点或预防焦点进行自我调节。注重晋升的人有积极的策略,关心进步和成长。一个注重预防的人有一个关注安全和稳定的警惕策略。我研究了首席执行官的监管焦点如何影响早期公司正式管理控制系统(MCS)的平均采用时间。我认为,以促进为重点的ceo比以预防为重点的ceo更快地采用MCS,尽管采用率的差异将被外部资金(股权或债务)的存在所消除。我使用来自实地调查的数据来检验这一假设,结果是受试者之间的设计为2 × 2。正如预测的那样,在外部资金存在的情况下,以促进和预防为重点的CEO的平均采用时间没有差异,这表明外部资金减轻了以预防为重点的CEO在分配资源实施新控制系统时的谨慎倾向。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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