Prior research suggests a chief executive officer’s (CEO) background is highly predictive of the strategic predisposition. This paper aims to focus on the need for accuracy in the categorization of CEO background and the impact that modest, nuanced changes in coding definitions yield.
This study evaluates the use of biographic and demographic information of CEOs to provide a more nuanced and expansive approach to understanding the influence of legal education and experience on business strategy. Propositions as to more nuanced coding definitions are developed. Building upon Fligstein (1987), a proof-of-concept example is developed using CEO information available for 2010. That data is then reexamined using an altered method (Modified Fligstein) to discern changes in the number of CEOs contained within the background categories.
The two categorizations performed reveal that substantial differences in the number of CEOs coded into a category can come from relatively small changes in categorical definitions. In comparing the first categorization to the second, each of the vocational categories experienced a change, ranging from a decrease of 11.1% to an increase of 142.9%.
This study informs both theory and practice by increasing the efficacy of the use of biographic and demographic information to assess the strategic orientation of executives. It postulates and demonstrates that simple changes in the categorical definition produce significant changes and can skew empirical results that reduce the utility of prior studies.
