CEO's industry experience and emerging market SME performance: The effects of corruption and political uncertainty

Q1 Business, Management and Accounting

Journal of Business Venturing Insights Pub Date : 2023-09-05 DOI:10.1016/j.jbvi.2023.e00424

Juan Carlos Morales-Solis , Vincent L. Barker III , Arkangel M. Cordero

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Abstract

We examine how Chief Executive Officer (CEO) industry-specific experience influences firm performance in small and medium enterprises (SMEs) in emerging markets. Drawing on the upper echelons perspective and learning theory, we propose an inverted U-shaped relationship between an SME CEO's industry-specific experience and firm performance. We also argue that country corruption and political instability moderate this relationship, resulting in lower performance for SME CEOs with little industry experience or many years of industry experience in countries with high corruption or political instability. We test our hypotheses using data from the World Bank's Enterprise Survey of firms in emerging economies from 2006 to 2019. The results support our hypotheses that corruption and political instability primarily hurt the performance of SMEs with CEOs having very long industry experience. We discuss implications of this research for scholars studying SMEs in lesser-developed institutional environments and how leaders may influence SME performance.

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CEO的行业经验与新兴市场中小企业业绩：腐败和政治不确定性的影响

我们研究了首席执行官(CEO)行业特定经验如何影响新兴市场中小企业(SMEs)的公司绩效。利用上层梯队视角和学习理论，我们提出了中小企业CEO的行业经验与企业绩效之间的倒u型关系。我们还认为，国家腐败和政治不稳定调节了这种关系，导致在高度腐败或政治不稳定的国家中，缺乏行业经验或多年行业经验的中小企业ceo的绩效较低。我们使用世界银行2006年至2019年对新兴经济体企业的企业调查数据来检验我们的假设。研究结果支持了我们的假设，即腐败和政治不稳定主要损害了ceo具有很长行业经验的中小企业的绩效。我们讨论了本研究对研究欠发达制度环境下中小企业的学者的启示，以及领导者如何影响中小企业绩效。

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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