Behavioral agency and corporate entrepreneurship: CEO equity incentives & competitive behavior

Carla D. Jones; Phillip M. Jolly; Connor J. Lubojacky; Geoffrey P. Martin; Luis Gomez-Mejia

doi:10.1007/s11365-019-00576-7

Behavioral agency and corporate entrepreneurship: CEO equity incentives & competitive behavior

Carla D. Jones, Phillip M. Jolly, Connor J. Lubojacky, Geoffrey P. Martin, Luis Gomez-Mejia

Management and Entrepreneurship

Research output: Contribution to journal › Article › peer-review

6 Scopus citations

Abstract

Scholars have long studied drivers of entrepreneurial behavior among established firms. Yet little is known about how individual factors shape a firm’s choice to pursue entrepreneurship. We draw on behavioral agency theory to explore the role of equity incentives in driving corporate entrepreneurship. Our findings suggest CEOs avoid corporate entrepreneurial behaviors as their option wealth increases. However industry dynamics also prove to be an important contingency when predicting the effects of both restricted stock and stock options on the likelihood that the CEO engages in corporate entrepreneurship. Our findings provide a theoretical platform for predicting dimensions of entrepreneurial behavior and highlight effects of CEO equity ownership.

Original language	English (US)
Pages (from-to)	1017-1039
Number of pages	23
Journal	International Entrepreneurship and Management Journal
Volume	15
Issue number	3
DOIs	https://doi.org/10.1007/s11365-019-00576-7
State	Published - Sep 15 2019

Keywords

Behavioral agency
Competitive behavior
Corporate entrepreneurship
Incentive alignment

ASJC Scopus subject areas

Management Information Systems
Management of Technology and Innovation

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10.1007/s11365-019-00576-7

Cite this

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abstract = "Scholars have long studied drivers of entrepreneurial behavior among established firms. Yet little is known about how individual factors shape a firm{\textquoteright}s choice to pursue entrepreneurship. We draw on behavioral agency theory to explore the role of equity incentives in driving corporate entrepreneurship. Our findings suggest CEOs avoid corporate entrepreneurial behaviors as their option wealth increases. However industry dynamics also prove to be an important contingency when predicting the effects of both restricted stock and stock options on the likelihood that the CEO engages in corporate entrepreneurship. Our findings provide a theoretical platform for predicting dimensions of entrepreneurial behavior and highlight effects of CEO equity ownership.",

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AB - Scholars have long studied drivers of entrepreneurial behavior among established firms. Yet little is known about how individual factors shape a firm’s choice to pursue entrepreneurship. We draw on behavioral agency theory to explore the role of equity incentives in driving corporate entrepreneurship. Our findings suggest CEOs avoid corporate entrepreneurial behaviors as their option wealth increases. However industry dynamics also prove to be an important contingency when predicting the effects of both restricted stock and stock options on the likelihood that the CEO engages in corporate entrepreneurship. Our findings provide a theoretical platform for predicting dimensions of entrepreneurial behavior and highlight effects of CEO equity ownership.

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Behavioral agency and corporate entrepreneurship: CEO equity incentives & competitive behavior

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