Article

Asia Pacific Journal of Management

, Volume 27, Issue 4, pp 611-624

First online:

CEO duality, organizational slack, and firm performance in China

  • Mike W. PengAffiliated withSchool of Management, University of Texas at Dallas Email author 
  • , Yuan LiAffiliated withSchool of Management, Xi’an Jiaotong University
  • , En XieAffiliated withSchool of Management, Xi’an Jiaotong University
  • , Zhongfeng SuAffiliated withSchool of Management, Xi’an Jiaotong University

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Abstract

CEO duality, organizational slack, and ownership types have been found to affect firm performance in China. However, existing work has largely focused on their direct relationships with firm performance. Advancing this research, we develop an integrative framework to address an important and previously underexplored question: How do CEO duality and organizational slack affect the performance of firms with different ownership types? Specifically, we compare the moderating effects of CEO duality on the relationship between organizational slack and firm performance in China’s state-owned enterprises (SOEs) and private-owned enterprises (POEs). Findings suggest that there is a positive relationship between organizational slack and firm performance, and that CEO duality negatively moderates this relationship in SOEs, but positively in POEs.

Keywords

CEO duality Organizational slack China