Chief executive officer participative leadership and the performance of new venture teams | Zendy

Nathan Eva | Zendy; Alexander Newman | Zendy; Qing Miao | Zendy; Brian Cooper | Zendy; Kendall Herbert | Zendy

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Chief executive officer participative leadership and the performance of new venture teams

Author(s) -

Nathan Eva,

Alexander Newman,

Qing Miao,

Brian Cooper,

Kendall Herbert

Publication year - 2018

Publication title -

international small business journal researching entrepreneurship

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 2.075

H-Index - 85

eISSN - 1741-2870

pISSN - 0266-2426

DOI - 10.1177/0266242618808558

Subject(s) - chief executive officer , social exchange theory , psychology , officer , public relations , business , cognition , social psychology , management , political science , neuroscience , law , economics

In this article, we examine the mediating role played by affective and cognitive trust in chief executive officer (CEO) and intra-group trust, on the relationship between CEO participative leadership and the performance of the top management team (TMT) and its members within entrepreneurial new ventures. Drawing on four waves of multilevel, multi-source data, our study extends social exchange theory by teasing out the trust-based social exchange mechanisms linking CEO participative leadership to performance outcomes. Specifically, the data analysis revealed that intra-group trust mediated the relationship between CEO participative leadership and TMT performance, while affective trust mediated the relationship between CEO participative leadership and performance of TMT members. However, cognitive trust did not mediate this relationship. This suggests that it is important for CEOs of new ventures to use participative leadership to create strong levels of affective trust with TMT members and intra-group trust within the TMT.

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