Executive Leadership and Organizational Performance: Suggestions for a New Theory and Methodology

It is argued that the question over whether top-level leadership significantly affects organizationalperformance can be clarified by properly interpreting the results of executive succession studies that have used economic aspects of organizational performance as criteria. When several methodological concerns are addressed, it is evident that executive leadership can explain as much as 45% of an organization's performance. In order to more fully understand how upperlevel leaders affect organizational performance, we propose that a theory of executive leadership be developed. Guidelines are providedfor developing such a theory. Specifically, problems to avoid, methodologies to consider, and places to look for relevant theory are discussed.