Managerial Style and Attention

• 成果类型: Article
• 署名作者: Dessein, Wouter; Santos, Tano
• 署名单位: Columbia University
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• 发表日期: 2021
• 页码: 372-403
• 关键词: management-practices; firm response; COMMUNICATION; PRODUCTIVITY; COORDINATION; strategy

摘要

Is firm behavior mainly driven by its environment or rather by the characteristics of its managers? We develop a cognitive theory of manager fixed effects, where the allocation of managerial attention determines firm behavior. We show that in complex environments, the endogenous allocation of attention exacerbates manager fixed effects. Small differences in managerial expertise then may result in dramatically different firm behavior, as managers devote scarce attention in a way that amplifies initial differences. In contrast, in less complex environments, the endogenous allocation of attention mitigates manager fixed effects. Firm owners prefer managers with style only in complex environments.