The impact of celebrity CEOs on restaurant firm performance: The moderating role of environmental dynamism

Bora Kim, Seoki Lee

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

Abstract

In today's media-saturated world, intense media attention propels some CEOs to stardom. This social escalation of CEOs to celebrities inherently affects their actions and strategic choices, and thus the performance of their host organizations. Despite the importance of understanding upper echelons—especially celebrity CEOs in the tourism and hospitality industry—researchers have devoted little attention to the implications of CEO celebrity. As a result, whether CEO celebrity serves as a company asset or liability remained largely unknown. Based on the upper echelons theory and CEOs’ behavioral constraints, this study uncovers and provides initial empirical evidence on how a CEO's celebrity affects firm performance, with a detailed examination of the restaurant industry. Further, we show that industry dynamism, an important external environmental factor, plays a positive moderating role such that the positive effect of CEO celebrity on firm performance becomes weaker as industry dynamism increases.

Original languageEnglish (US)
Pages (from-to)869-880
Number of pages12
JournalJournal of Business Research
Volume139
DOIs
StatePublished - Feb 2022

All Science Journal Classification (ASJC) codes

  • Marketing

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