Predicting firm performance by integrating funding climate and CEO-COO dyad

Abstract

This research starts to unravel the nomological network of a funding climate and defines the regulatory state and efficacy level of the CEO - COO dyad needed to increase firm performance. Funding climate is further validated by this research exposing the impact a funding climate may have prior, during and after a company receives funding. Top management team's (CEO - COO dyad) shared regulatory focus both promotion and prevention may have a relationship to firm performance via group collective efficacy. This research provides the opportunity to contribute to social-cognitive theory linking collective efficacy with firm performance. This study will lend to practitioners decision-making on both sides of the funding cycle. Most business inevitably require funding, initiating a funding climate, through the funding agency lens the knowledge gained through this study will contribute in empowering them to make a decision on what CEO-COO dyad possibly fit their business. The data collected for this study utilized a web-based surveys program. Over 50 dyads participated and their results were aggregated with firm performance confirmed by the CFO or a ranking financial official of the company. Catalysts for creating value in an organization are vast; two variables that appear to be required to solidify any value horizon are tested in this research. Prevention focused top management teams collective efficacy was shown to have a significant positive relationship with firm performance. Promotion focused management teams revealed a significant positive relationship to collective efficacy. Possible more importantly is the confirmation of the significant and positive conditional indirect effects of dyad promotion focus on collective efficacy with Sit & Wait Funding Climate as a moderator.