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The chemistry factor in the Chairman/CEO relationship

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  • Kakabadse, Andrew P.
  • Kakabadse, Nada K.
  • Knyght, Reeves

Abstract

Summary This paper reports a study into the nature, dynamics and effects of the 'chemistry' of the Chairman/Chief Executive Officer (CEO) relationship. A qualitative, semi-structured interview, narrative analysis methodology over a twenty-eight month period was adopted. A sample of CEO's, Chairmen and Non-Executive Directors (NEDs) across the boards of nine corporations, agreed to participate in in-depth discussion. Personal narratives of the board director's experience, particularly from the perspective of enabling understanding of the 'chemistry' of the Chairman/CEO relationship, were analysed in terms of boardroom and organisational effect. There are two elements to 'chemistry', analytical interpretative capacity (sense making) and deep friendship (philos). Both emerge as primary to determining Chairman/CEO effectiveness and in combination nurture meaningful knowledge sharing as well as a desire for learning in the boardroom. Absence of either allows for a workable relationship, but with neither, the Chairman/CEO dyad and the organisation are harmed. This qualitative study draws attention to the criticality of sense making and philos as determinants of the quality of the Chairman/CEO relationship. The study results emphasise the critical nature of the Chairman/CEO relationship in determining boardroom and organisational effectiveness. Development of this dyadic interaction is considered to positively benefit boardroom dynamics and organisational performance.

Suggested Citation

  • Kakabadse, Andrew P. & Kakabadse, Nada K. & Knyght, Reeves, 2010. "The chemistry factor in the Chairman/CEO relationship," European Management Journal, Elsevier, vol. 28(4), pages 285-296, August.
    • Handle: RePEc:eee:eurman:v:28:y:2010:i:4:p:285-296
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    Citations

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    Cited by:

    1. Shelagh Campbell & Yingqi Li & Junli Yu & Zhou Zhang, 2016. "The Impact of Occupational Community on the Quality of Internal Control," Journal of Business Ethics, Springer, vol. 139(2), pages 271-285, December.
    2. Zona, Fabio, 2014. "Board leadership structure and diversity over CEO time in office: A test of the evolutionary perspective on Italian firms," European Management Journal, Elsevier, vol. 32(4), pages 672-681.
    3. Kolias, Georgios & Koumanakos, Evangelos, 2022. "CEO duality and tax avoidance: Empirical evidence from Greece," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 47(C).
    4. Azzam, Ala'a & Alhababsah, Salem, 2023. "Does age similarity between board chair and CEO matter for R&D investments? Evidence from China," Finance Research Letters, Elsevier, vol. 58(PD).
    5. Peter J. Baldacchino & Norbert Tabone & Janice Camilleri & Simon Grima, 2020. "An Analysis of the Board of Directors Composition: The Case of Maltese Listed Companies," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(1), pages 25-44.
    6. Kanadlı, Sadi Boĝaç & Torchia, Mariateresa & Gabaldon, Patricia & Calabrò, Andrea, 2020. "Effects of Task Conflict on Board Task Performance in Family Firms: The Importance of Board Openness," Journal of Family Business Strategy, Elsevier, vol. 11(2).
    7. Dubocage, Emmanuelle & Galindo, Géraldine, 2014. "Understanding founder–CEO’s replacement in venture-backed companies: A theoretical and empirical analysis," European Management Journal, Elsevier, vol. 32(3), pages 461-474.

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