, Volume 27, Issue 4, pp 611-624
Date: 31 Jul 2009

CEO duality, organizational slack, and firm performance in China

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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.

This research has been supported in part by the (US) National Science Foundation (CAREER SES 0552089) and the National Natural Science Foundation of China (70741420172 and 70671082). We thank Sunny Li Sun and Rae Pinkham for assistance. All views expressed are those of the authors and not those of the sponsors.