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CEO attention and sustainable development: An analysis of its influence on firm's sustainability orientation

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  • Kangkang Yu
  • Shaobo Hou
  • Cheng Qian
  • Lingbo Zhang

Abstract

Drawing on the attention‐based view and leadership theory, this study proposes a theoretical framework for the relationship between CEOs' attention load and firms' sustainability orientation, with supply chain leadership and CEOs' social capital playing mediating and moderating roles, respectively. We tested the theoretical framework by analysing panel data on 236 CEOs from 102 listed companies in the agricultural and food industries in China from 2012 to 2019. We find that (a) CEOs' attention load negatively affects firms' sustainable orientation; (b) this relationship is partially mediated by firms' supply chain leadership; and (c) CEOs' social capital positively moderates this mediating effect. Lower CEO attention loads are associated with increased supply chain leadership and higher sustainability orientation for the firm. Additionally, CEOs' social capital positively moderates the relationship between attention load and sustainability orientation. This study integrates the attention‐based view and leadership theory into sustainable development research, investigating the translation mechanism of CEO attention to a firm's managerial orientation towards sustainability. It contributes to leadership theory by extending sustainable and ethical leadership from an intra‐ to inter‐organisational context.

Suggested Citation

  • Kangkang Yu & Shaobo Hou & Cheng Qian & Lingbo Zhang, 2024. "CEO attention and sustainable development: An analysis of its influence on firm's sustainability orientation," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(4), pages 4042-4056, August.
    • Handle: RePEc:wly:sustdv:v:32:y:2024:i:4:p:4042-4056
    DOI: 10.1002/sd.2890
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