| How enterprises respond to environmental changes and maintain competitive advantages in market competition is the ultimate goal pursued by every strategic manager,and also the core issue of strategic management research.Under the influence of the new round of digital economic transformation and the normalized development of COVID-19,the external environment is increasingly dynamic and uncertain.The existing research on performance persistence based on Institutional Theory,Industry Organization Theory and Resource-Based View,has shown its limitations and also encountered development bottlenecks due to its narrow external and static perspectives.Therefore,this study focuses on the key executives,CEOs who connect the changes of external environment and internal strategic management to conduct research on the firm performance persistence from a dynamic internal and external matching perspective of enterprise management.Considering that China is the world’s largest emerging economy undergoing economic restructuring and reform,it means that CEOs in China’s emerging economic markets have a more complex identity background compared with western developed countries,meanwhile Chinese enterprises are facing great challenges in upgrading transformation and high-quality development with the deepening of China’s economic opening-up and reform.Based on the consideration about such background of theoretical and practical development,this study will focus on the following questions: to what extent Chinese enterprise CEO exactly impact on firm performance persistence,whether the marketoriented reform has promoted the influence of CEOs on firm performance persistence,what factors of CEOs affect firm performance persistence and how these effects happen.Based on the construction of a dynamic management process theoretical framework,this study empirically tests and reveals the influencing mechanism of CEOs’ impact on firm performance persistence,with the aim to provide practical advice for relevant policy making and enterprise management and development.Firstly,based on the study of Upper Echelons theory,Managerial Discretion theory,Dynamic Management Capability theory and Dynamic Capability theory,this study analyzes and constructs the relationship between CEOs and firm performance persistence by literature research and qualitative deductive research method.And according to the theoretical basis provided by these different theories,an overall theoretical framework and a dynamic management process theoretical analysis framework are proposed to analyze CEOs’ impact on firm performance persistence,in which a CEO linkage mechanism of external environmental change and internal strategic management driven dynamic capabilities of enterprises is gradually analyzed from three aspects of micro-basis,impact path and impact context,providing a theoretical basis for the following research.Then,according to this theoretical analysis framework,this paper studies the extent of CEOs’ impact on firm performance persistence under the background of Chinese transition economy and the influencing mechanism of three dimensions of CEO’s dynamic management capabilities,namely managerial human capital,managerial social capital and managerial cognition,on firm performance persistence.Mathematical model constructions and empirical research methods are used to test and analyze the proposed corresponding theoretical hypotheses.And some conclusions of theoretical and practice significance are obtained as follows.(1)It is supported that Chinese CEOs have a significant impact on firm performance persistence,which can be regarded as a source of sustainable competitive advantages.Although the influencing extent in state-owned firms is not as that much of private firms,with the improvement of marketization level,the longitudinal,regional as well as state-owned and private enterprises analyses show the influencing extent gradually increases,indicating that CEOs are playing an increasingly important role in Chinese enterprises.(2)Most characteristics of CEOs dynamic managerial capabilities in this study are tested to have significant impact on the superior firm performance persistence.Among them,the characteristics of managerial human capitals(CEO educational degree,output functional experience and international work experience),managerial social capitals(CEO business social capital and political social capital)and managerial cognitions(CEO overconfidence)have a positive impact,whereas CEO risk preference has a negative impact.(3)Different dimensions of CEO dynamic management ability have an impact on superior firm performance persistence through different dynamic management process path mechanisms.The characteristics of CEO’s managerial human capital have a positive impact by strengthening the entrepreneurial orientation of enterprises,which is consistent with the dynamic management process mechanism of "creation" effect of management human capital on the firm performance persistence.CEOs’ business and political social capital plays a positive role in sustaining superior performance through enhancing stakeholder relations,which partially verifies the dynamic management process mechanism of the "integration" effect of managing social capital on the firm performance persistence.CEO overconfidence has a positive impact on firm performance persistence by strengthening strategic persistence and conformity,while CEO risk appetite by reducing strategic continuation and convergence negative impact on earnings persistence,consistent with the dynamic management process mechanism of the "reconfiguration" effect of managing cognition on the firm performance persistence.However,it is worth noting that the impact needs to be analyzed according to specific characteristics.(4)Environmental dynamics is not a necessary and prerequisite for the dynamic managerial capabilities of CEOs.The dynamic value of CEOs is reflected by their dynamic management ability shown in the dynamic management process to sustain firm superior performance persistence.Most of the characteristics of dynamic managerial capability in this study do not have a more positive impact on superior firm performance persistence in a high dynamic environment,and most of the mediation mechanisms of dynamic management process that played a role before also fail in a high dynamic environment.In contrast,the dynamic value of the characteristics of CEOs dynamic managerial capabilities are more reflected in the direct influence and dynamic management process in the general environment,rather than in the highly dynamic changing environment.Through above research,the innovations of this paper can mainly be concluded in the following four aspects:(1)it puts forward a theoretical framework of dynamic management process to analyze the impact of CEO on firm performance persistence,which opens a new research perspective to study firm performance persistence;(2)through improvement of the existing method,this study proposes an innovative model construction,which enables the measurement of the extent of CEOs’ impact on firm profit persistence.And the empirical analysis indicates CEOs indeed have important impact on firm performance persistence and answers the question of to what extent Chinese CEOs matter for firm performance persistence under the background of Chinese transition economy.(3)it proposes a test model and method for the mediating effect of firm performance persistence,with which it empirically tests and reveals the path mechanism of the impact of CEOs’ managerial human capitals,managerial social capitals and managerial cognitive characteristics on firm performance persistence.(4)With consideration about the moderating effect of environmental dynamics,it further identifies the dynamic value and function mechanism of different CEO dynamic managerial capabilities. |
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