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Leaders's Impression Management During Organizational Decline: The Roles of Publicity, Image Concerns, and Incentive Compensation

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SSCI Scopus ABDC-A*

Abstract

In this study, we develop and examine a model of leaders' impression management during organizational decline by elaborating on the roles of publicity, image concerns, and incentive compensation. We propose that the publicity of decline is an important antecedent of leaders' impression management during decline. We also examine how leaders' image concerns mediate this positive relationship. In addition, we consider the relative influence of incentive compensation and fixed compensation on the relationship between leaders' image concerns and their impression management during decline. Our results, based on a specially-designed management simulation game conducted with experienced Chinese managers, show that high publicity of decline elevates leaders' image concerns, which in turn increases their impression management during decline. In addition, incentive compensation strengthens rather than weakens the effects of leaders' image concerns on their impression management. We discuss the implications of leaders' impression management during organizational decline.

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[Chng, Daniel Han Ming] China Europe Int Business Sch, Shanghai 201206, Peoples R China

[Rodgers, Matthew S.] Ohio State Univ, Fisher Coll Business, Columbus, OH 43210 USA

[Shih, Eric] Sungkyunkwan Univ, SKK Grad Sch Business, Seoul 110745, South Korea

[Song, Xiao-Bing] Dalian Univ Technol, Sch Management, Liaoning 116024, Peoples R China


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Source

The Leadership Quarterly

ISSN:1048-9843

Year:2015

Issue:2

Volume:26

Page:270-285

ESI Discipline:ECONOMICS & BUSINESS;

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