CEO Decision Style and Firm Performance–Model Questionnaire

Abstract

The CEO Decision Style and Firm Performance–Model (Kruse, Bendig, & Brettel, 2023) was developed to explore the relationships between firm performance and two key dimensions of CEO decision style: the use of heuristics and decision standards. This model conceptualizes the speed and innovativeness of new product development (NPD) as mediators in these relationships. The development involved adapting items from previous scales (e.g., Durinik et al., 2018; Misuraca et al., 2015; Sheng et al., 2013). The items were translated from English to German using back-translation (Brislin, 1970). These translated scales were then reviewed by three management consultants to ensure comprehensibility, and all items were refined based on feedback from a pre-test conducted with randomly selected firms. The resulting measure, comprising 23 items, was administered to German firms and evaluated using structural equation modeling and factor analysis. The study reported results concerning factor structure and reliability.

Keywords

Alternative Search, High Standards, New Product Development Speed, New Product Development Innovativeness, Firm Performance, CEO Decision Style, Creativity, Decision Making, Management Methods, Organizational Effectiveness, Product Design, Top Level Managers, Organizational and Occupational Measures.

Authors

Kruse, Sebastian; Bendig, David; Brettel, Malte

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Purpose

The primary purpose of this measurement model is to assess CEOs’ decision styles in relation to NPD speed, NPD innovativeness, and overall firm performance.

Validity

No data is Available.

Reliability

Internal consistency was assessed, with Composite Reliability (CR) values ranging from 0.72 to 0.90 among the various constructs, indicating good internal consistency.

Factor Analysis

A confirmatory factor analysis (CFA) was conducted, and the proposed five-factor model demonstrated good measures of fit for complex models in large samples (Hair et al., 2010): χ²[220] = 1171.809, p < 0.001, CFI: 0.92, RMSEA: 0.06, SRMR: 0.05. This structure significantly fit the data better than other models tested. All factor loadings were statistically significant at the 0.1 percent level, and all variables fulfilled the Fornell and Larcker (1981) criterion, indicating good convergent validity.

To assess common method variance (CMV), the comprehensive CFA marker technique (Williams et al., 2010) was employed. A marker variable from the survey was added to the baseline CFA model, and this model was compared to one in which all substantive items also loaded on the marker variable. The results indicated no statistical difference between the two models (Δχ² = 0.05, df = 1, p = 0.83), which strengthens confidence that CMV does not significantly influence the data.

Instrument: CEO Decision Style and Firm Performance–Model

Test Type

Original Instrument Type: Inventory/Questionnaire

Format

All items are measured using seven-point Likert scales. The measure includes 23 items.

Language Available

German

Population Group

Human; Male; Female

Age Group

No data is Available

Population Details

Respondents were Business Firm CEOs located in Germany.

Test Methodology

The instrument was evaluated using Test Reliability, Internal Consistency, Factor Analysis, Confirmatory Factor Analysis, Measurement Model, and Structural Equation Modeling.

Keywords

Alternative Search, High Standards, New Product Development Speed, New Product Development Innovativeness, Firm Performance, CEO Decision Style.

Authors

• Kruse, Sebastian

  • Author ORCID Identifier: No data is Available

  • Affiliation: RWTH Aachen University, Innovation and Entrepreneurship Group (WIN) – TIME Research Area

  • Email Address: [email protected]

  • Correspondence Address: RWTH Aachen University, Innovation and Entrepreneurship Group (WIN) – TIME Research Area, Kackertstr. 7, Aachen, Germany, 52072, [email protected]

• Bendig, David

  • Author ORCID Identifier: No data is Available

  • Affiliation: University of Münster, Institute for Entrepreneurship

  • Email Address: No data is Available

• Brettel, Malte

  • Author ORCID Identifier: No data is Available

  • Affiliation: RWTH Aachen University

  • Email Address: No data is Available

Permissions & Fee and Test Year

• Permissions: Contact Corresponding Author

• Commercial: No

• Fee: No

• Test Year: 2023

References

Kruse, S., Bendig, D., & Brettel, M. (2023). How does CEO decision style influence firm performance? The mediating role of speed and innovativeness in new product development. Journal of Management Studies, 60(5), 1205–1235. https://doi.org/10.1111/joms.12913

Items of the CEO Decision Style and Firm Performance–Model

Factors and Subscales

The instrument includes the following factors: Alternative search, High standards, New product development speed, New product development innovativeness, and Performance.

Number of Items

This measure includes 23 items.

Test Items Available

No data is Available.