Research On The Relationship Of CEO Leadership Style,Strategic Change And Firm Performance

With the further development of economic globalization,the environment of enterprise development becomes more and more complex,and the competition becomes more and more fierce.In the face of complex and changeable market environment,enterprises need to adjust or change their own development strategies to meet the needs of enterprise survival.In order to meet the challenges facing the market environment and continuously improve business performance,we should promote strategic change from the reality of the enterprises.The strategic change of enterprises will be affected by many factors directly or indirectly,and the CEO is one of the most important factors.As a strategic leader,CEO determines the formulation of enterprise innovation decision,the allocation of resources,the implementation of the system and the cultivation of culture.CEO's leadership style is a subjective reflection and interpretation of the strategic behavior of the company,which is the basis of the strategic choice of CEO,which will promote or prevent the strategic change.However,the existing research focus on leadership style characteristics directly influence the behavior of employees,mainly from the individual level to analyze the relationship between leadership style and leadership effectiveness,lacking of a strategic perspective to analyze and think about how leadership styles affect strategic choice and change.The main purpose of this study is: combined with dynamic environmental change scenarios in China,considering the interaction within the Top management team and strategic leaders,from the perspective of strategic change,the paper reveals the role of the leadership style of strategic leaders on enterprise performance.This study will use theoretical analysis and empirical research methods to do the research.First of all,this paper summarizes the research of CEO transformational / transactional leadership style,TMT climate and strategic change to lay the foundation for research and find the breakthrough point.Secondly,constructing the research framework and putting forward relevant hypotheses.Then,we collecte 315 listed companies in Shanghai and Shenzhen stock market as the research object and analyze the data validity.Finally,the hypothesis are tested and the empirical results are as follows: Firstly,CEO transformational leadership style can promote the strategic change of enterprises,and CEO transactional leadership style has a significant negative impact on strategic change.Secondly,CEO transformational leadership and transactional leadership have a positive impact on firm performance,and the impact of transformational leadership is better than transactional leadership.Thirdly,strategic change will positively affect the firm performance.Strategic change plays a mediating role between transformational leadership and firm performance.Fourthly,the openess climate of the TMT positively moderates the relationship between transformational leadership and strategic change,but it has no moderating effect on the relationship between transactional leadership and strategic change.Fifthly,environmental dynamism has a positive moderating effect on the relationship between CEO transformational leadership and strategic change,it has no moderating effect on the relationship between CEO transactional leadership and strategic change,it also plays a positive moderating role in the relationship between strategic change and firm performance.The significance of this study is to reveal the mechanism of how the CEO leadership style affects the performance of enterprises from the perspective of strategic change,and to provide a new perspective to reveal the "black box" of the relationship between individual behavior and firm performance.This study can also better verify the the contingency theory of leadership,and provide a more appropriate guidance for the practice of leadership style theory in China.It also has some practical significance for Chinese enterprises' strategic leaders to know how to improve the firm performance through the promotion of strategic change.