When does charisma matter for top-level leaders? Effect of attributional ambiguity

One stream of leadership theory suggests leaders are evaluated via inferential observer processes that compare the fit of the target to a prototype of an ideal (charismatic) leader. Attributional theories of leadership suggest that evaluations depend on knowledge of past organizational performance, which is attributed to the leader's skills. We develop a novel theory showing how inferential and attributional processes simultaneously explain top-level leader evaluation and ultimately leader retention and selection. We argue that observers will mostly rely on attributional mechanisms when performance signals clearly indicate good or poor performance outcomes. However, under conditions of attributional ambiguity (i.e., when performance signals are unclear), observers will mostly rely on inferential processes. In Study 1 we tested our theory in an unconventional context-the U.S. presidential election-and found that the two processes, due to the leader's charisma and country economic performance, interact in predicting whether a leader is selected. Using a business context and an experimental design, in Study 2 we show that CEO charisma and firm performance interact in predicting leader retention, confirming the results we found in Study 1. Our results suggest that this phenomenon is quite general and can apply to various performance domains

Causality and endogeneity: Problems and solutions

Most leadership and management researchers ignore one key design and estimation problem rendering parameter estimates uninterpretable: Endogeneity. We discuss the problem of endogeneity in depth and explain conditions that engender it using examples grounded in the leadership literature. We show how consistent causal estimates can be derived from the randomized experiment, where endogeneity is eliminated by experimental design. We then review the reasons why estimates may become biased (i.e., inconsistent) in non-experimental designs and present a number of useful remedies for examining causal relations with non-experimental data. We write in intuitive terms using nontechnical language to make this chapter accessible to a large audience

Charisma: An ill-defined and ill-measured gift

We take historical stock of charisma, tracing its origins and how it has been conceptualized in the sociological and organizational sciences literatures. Although charisma has been intensely studied, the concept is still not well understood and much of the research undertaken cannot inform policy. We show that the major obstacles to advancing our understanding of charisma have included issues with its definition, its confusion with transformational leadership, the use of questionnaire measures, and that it has not been studied using correctly-specified causal models. To help spawn a new genre of research in charisma, we use signaling theory to provide a general definition of charisma, and make suggestions about how charisma should be conceptualized, operationalized, and modeled. We also describe trends and patterns in articles we reviewed, using co-citation as well as bibliometric analyses, and discuss the practical implications of our findings

Supply driven mortgage choice

Variable mortgage contracts dominate the UK mortgage market (Miles, 2004). The dominance of the variable rate mortgage contracts has important consequences for the transmission mechanism of monetary policy decisions and systemic risks (Khandani et al., 2012; Fuster and Vickery, 2013). This raises an obvious concern that a mortgage market such as that in the UK, where the major proportion of mortgage debt is either at a variable or fixed for less than two years rate (Badarinza, et al., 2013; CML, 2012), is vulnerable to alterations in the interest rate regime. Theoretically, mortgage choice is determined by demand and supply factors. So far, most of the existing literature has focused on the demand side perspective, and what is limited is consideration of supply side factors in empirical investigation on mortgage choice decisions. This paper uniquely explores whether supply side factors may partially explain observed/ex-post mortgage type decisions. Empirical results detect that lenders’ profit motives and mortgage funding/pricing issues may have assisted in preferences toward variable rate contracts. Securitisation is found to positively impact upon gross mortgage lending volumes while negatively impacting upon the share of variable lending flows. This shows that an increase in securitisation not only improves liquidity in the supply of mortgage funds, but also has the potential to shift mortgage choices toward fixed mortgage debt. The policy implications may involve a number of measures, including reconsideration of the capital requirements for the fixed, as opposed to the variable rate mortgage debt, growing securitisation and optimisation of the mortgage pricing policies

An index to quantify an individual's scientific research output that takes into account the effect of multiple coauthorship

I propose the index $\hbar$ ("hbar"), defined as the number of papers of an individual that have citation count larger than or equal to the $\hbar$ of all coauthors of each paper, as a useful index to characterize the scientific output of a researcher that takes into account the effect of multiple coauthorship. The bar is higher for $\hbar$.Comment: A few minor changes from v1. To be published in Scientometric

Existential Communication and Leadership

The aim of this article is to introduce and explain a number of important existentialist philosophers and concepts that we believe can contribute to a critical approach to leadership theory. Emphasis is placed on understanding the nature of communication from an existentialist perspective and so Jaspers' conceptualization of existential communication is introduced along with important related concepts that may be regarded as important facets of leader communication including Being-in-the-world, the Other, intersubjectivity, dialogue and indirect communication. Particular attention is paid to Buber's ideas on communication as relationship and dialogue. Throughout, reference is made to contemporary, and what is often regarded as orthodox, thinking regarding the centrality of communication to leadership practice as a means by which to highlight the salience of an existentialist analysis

The Dark Side of Visionary Leadership in Strategy Implementation:Strategic Alignment, Strategic Consensus, and Commitment

Drawing from visionary leadership and strategy process research, we theorize and test the mechanism through which middle and lower-level managers’ visionary leadership affects their teams’ strategic commitment. The management literature extols the virtues of visionary leadership. In contrast to this positive stance, we reveal a dark side to visionary leadership. Our theoretical framework suggests that team manager visionary leadership harms team strategic consensus when the manager is not strategically aligned with the CEO, which in turn diminishes team commitment to the strategy. In contrast, when a team manager is strategically aligned with the CEO, team manager visionary leadership is positively related to team strategic consensus and subsequently to team strategic commitment. Data from 136 teams from two organizations support our moderated mediation model. A supplemental analysis of the content of strategic consensus and additional qualitative interviews with managers and employees in one of these organizations provide additional insights concerning the meaning of the theorized relations in practice

Author Correction: A consensus-based transparency checklist.

An amendment to this paper has been published and can be accessed via a link at the top of the paper

Can Charisma Be Taught? Tests of Two Interventions

We tested whether we could teach individuals to behave more charismatically, andwhether changes in charisma affected leader outcomes. In Study 1, a mixed-design fieldexperiment, we randomly assigned 34 middle-level managers to a control or anexperimental group. Three months later, we reassessed the managers using theircoworker ratings (Time 1 raters = 343; Time 2 raters = 321). In Study 2, a within-subjectslaboratory experiment, we videotaped 41 MBA participants giving a speech. We thentaught them how to behave more charismatically, and they redelivered the speech6 weeks later. Independent assessors (n = 135) rated the speeches. Results from thestudies indicated that the training had significant effects on ratings of leader charisma(mean D = .62) and that charisma had significant effects on ratings of leaderprototypicality and emergence...............................................................................................................................