Power plays: A longitudinal examination of CEO/BOD power circulation and its impact on organizational performance

This dissertation focuses on CEO and BOD power relationships, examining individual and organizational antecedent and outcome factors impacted by CEO and BOD powers. Four primary research questions are explored, specifically (1) What is the temporal structure of power relationships, and how should these relationships be modeled in empirical study? (2) What is the nature of the dyadic relationship between CEO and BOD power?, (3) Is there a reciprocal relationship between CEO and BOD powers and firm performance?, and (4) What are the primary antecedents of CEO and BOD powers, and how do these antecedents influence CEO and BOD power development? A longitudinal study design is employed to inspect the determinants and consequences of organizational power circulation over time, and polynomial lag regression techniques are employed to explore different relationships within the study model.; The primary goal of this study is to develop a greater understanding of the nature of CEO and BOD power relationships, and to examine their impact on firm performance. A variety of corporate governance theories, including agency, managerial hegemony, resource dependency, and power circulation theories, are utilized to build a contingent model of power and governance. This merging of governance theories offers greater insight into the nature of CEO-BOD power relationships, as well as drivers of power shifts within the firm over time.; The study findings support reciprocity in the relationship between CEO power and firm performance, validating the Daily and Johnson (1997) study results and managerial hegemony theoretical perspectives of governance relationships. The study results did not support a reciprocal relationship between BOD power and performance, with significant findings for the BOD power - performance linkage but insignificant results for the performance - BOD power linkage. In addition, post hoc analysis supports the hypothesized relationship of Strategic Choice mediating the CEO Power - Organizational Performance linkage. The study findings also offer some support for temporal modeling of power antecedent and outcome relationships. Study conclusions, limitations, and directions for future research are also offered for consideration.