Strategic Management Quarterly

Do Power-gap Affecting Performance? New Evidence on Emerging Markets
Aries Heru PRASETYO, Wei LO

Abstract
Due to tremendous trends in having co-CEO at publicly companies, we tried to uncover the impact of larger power gap to firm performance. Using 10-years of analysis among 34 selected companies, our finding indicated that power gap positively contributed to firm performance. This proved that co-CEO structure succeeded in dealing with shared-power challenges. Wider gaps might results in higher performance. Our finding seems neglected the unity of leadership command while proposing new thoughts that dual power may exhibits stronger spirits to increase the level of productivity in managing groups of company. By having –almost equal – counter party, a leader has the opportunity to perform the best on specific particular task while distributing authority and power to the other partner. Statistically, the model count for 42.12%, higher than the previous research. Therefore we conclude that the co-CEO model work best for emerging markets.

Full Text: PDF     DOI: 10.15640/smq.v4n2a3