The Impact Of CEO Power On Enterprise Strategy Differences

Strategic differences affect corporate performance.Many scholars at home and abroad have found that the greater the strategic differences,the more likely the company is to obtain excellent or very bad returns.It is particularly important for companies to plan their strategic decisions and long-term competitive advantages.Choosing an industry convergence strategy will help improve the legitimacy of enterprises,but it will not enable them to obtain high returns.In the highly competitive market,in order to break through,choosing a strategy that goes far beyond the industry norm,but it will be a risk,and may eventually go awry.Therefore,as a strategy maker,how management influences strategic differences is worth exploring.From the perspective of strategic management,based on the theory of manager power and agency theory,the paper takes venture capital into the study of the influence of CEO power on the strategic difference of enterprises.The data of 2009-2016 of 588 listed companies in GEM are selected as samples analysis.The result shows that the bigger the CEO power is,the greater the possibility that the enterprise chooses to deviate from the mainstream strategy of the industry.The venture capital with specific investment features plays a mediating role in the influence of CEO power on the strategic difference of the enterprise: private background venture capital,alliance venture capital intervention companies suppresses the positive impact of CEO power on corporate strategic differences.These research conclusions are of great significance to the rational allocation of CEO power by enterprises,the introduction of venture capital by enterprises,and the selection of investment targets by investors.