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How important is emotional expression in boosting firm-level capabilities? If you have ever wondered about the importance of emotional expression in management, then you might want to read our article that was recently published in the Journal of Management Studies.

Brief summary

Through a mix of survey and interview data, in our study we found that CEOs and (Board) Chairpersons care about their work relationship and how it affects those around them. More specifically, CEOs and Chairpersons are quite mindful of how they express emotions to each other publicly and privately; their emotional expressions impact the communication climate around them and, thus, the broader knowledge-creation capabilities of the firm. 

The main concerns from the literature

Why and how do work relationships between CEOs and Chairpersons influence organizational-level processes and outcomes? This issue that has long attracted scholarly attention in the fields of strategic leadership and corporate governance. But this is also of immense practical importance since these two executive roles are the subject of intense public scrutiny and hold tremendous power in any organization. CEOs are responsible for the daily management and both the design and execution of firm strategy and personnel, while Chairpersons are responsible for managing the board of directors (BOD), as well as advising, supporting and monitoring the CEOs and their top management team. Both roles are complementary rather than substitutable.

Given their relative power, it is easy to imagine that alignment between CEOs and Chairpersons and their executive entities (the top management team and board of directors, respectively) would be key for influencing the organization’s direction, processes, and performance outcomes.

What we found in our background research, however, was that while there is some knowledge about how CEOs and Chairpersons interact and work with each other, there is less knowledge about how their relationship impacts the firm beyond the boundary of the board. On the other hand, the research that ties CEO and Chairperson relationships to firm performance tells us little about the dynamics of those relationships. This makes it hard to specify for these top managers what kinds of communications and interactions might not only make for a stronger, more positive relationship between them, but also benefit their firm overall.

What we did and found

Using both surveys and interviews, we investigated how a specific set of relationship dynamics between CEOs and Chairpersons – the expression of emotions – were not only meaningful to them, but to the firm as a whole. We surveyed 52 CEOs and 54 Chairpersons from different high-tech firms in Israel about the emotional carrying capacity of their relationships with their respective counterparts. Emotional carrying capacity refers to how much relationship partners are able to express more emotions overall, express both positive and negative emotions, and do so in a constructive manner. Our survey data revealed that these CEOs and Chairpersons positively associated their emotional carrying capacity with a positive organizational communication climate, where organizational members feel free to share information and new ideas, knowing they will be valued. This might be due to employees witnessing the open nature of CEO-Chairperson interactions, or board members discussing what they observe with middle managers and other organizational members. In turn, our survey data revealed that this positive communication climate promoted stronger knowledge creation capabilities in the firm, where employees could both exchange and combine current knowledge into new knowledge. Such capabilities ultimately predict stronger firm performance. In sum, from our survey data, we were able to draw a path: CEOs’ and Chairpersons’ emotional carrying capacity promoted a positive communication climate which supported the strong knowledge creation capabilities needed for firm performance. 

While it was important to illustrate such a path from CEO-Chairperson relational dynamics to firm performance, our survey data were limited in two ways. Since we did not survey pairs of CEOs and Chairpersons, we did not truly capture the mutual experience of their relationship. Additionally, the survey did not unpack specific mechanisms or how the CEO-Chairperson’s emotional carrying capacity would influence communication climate (and, thus, influence knowledge creation capabilities and firm performance). Interviews with four pairs of CEOs and Chairpersons helped to address these limitations. We learned from them that, although contentious relationships are often reported in research and the media, these relationship partners were quite close and even loved each other! They were able to share both positive and negative emotions, but were strategic about their emotional expressions, reserving negative emotional expressions for hashing out necessary conflicts in private, while ensuring they presented a positive, unified front in public to preserve harmony across the firm. Being so open about their emotions, both positive and negative, was a valuable resource for them since it allowed for debate, and built trust and respect. Such openness was a good model for others to be open with them and with others across the firm. They were quite aware of how exposed their relationship was to those inside and outside of the firm and the influence they had over the overall climate in their firms. Occasions such as board meetings and company tradeshows were opportunities for employees to witness such openness and solidarity.

Why this matters

Our research illustrates how interpersonal relationships – which we often take for granted in our lives at work – matter not only to the people in them, but to the firm as a whole. This advances research in strategy by pointing out the importance of a specific interpersonal relationship (between CEOs and Chairpersons) and specific relational dynamics of emotional expression. Future research can examine more cause-and-effect relationships between these dynamics and how they trickle down into the firm to affect performance. Our research suggests that top managers tasked with selecting CEOs and Chairpersons – a process of great sensitivity to firms and subject to much public scrutiny as well – should consider individuals’ relational competencies. Apart from their financial prowess, search committees should ask questions about candidates’ ability to constructively handle tough conversations, to encourage others while delivering negative feedback, and to sustain relationships across diverse individuals. Chairpersons and CEOs might also consider strengthening such relational competencies through personal mindfulness practices such as meditating, slowing down thoughts and self-compassion. Although these may seem antithetical to the dynamic pace these top managers face, our research suggests that they are quite wise about the strategic value of regulating how they express their emotions with each other. Lastly, not every CEO and Chairperson has frequent opportunities for connection. Structuring such opportunities into the corporate calendar, such as retreats or summits, is a start, but we also suggest even more regular, personalized forms of contact outside the work setting can go a long way in fostering the open, constructive relationships that would ultimately improve employee performance.