Molecular, structural firm adaptations to environments: empirical Tao of the CEO

Abstract

PurposeThe purpose of this paper is to investigate CEOs as leaders in manufacturing organizations. The focus is on the roles of CEOs in organizational adaptations to changing and continuously evolving external environments.Design/methodology/approachThe paper is grounded on a conceptual theory of molecular structuring inside organizations. The authors then investigate CEOs' leadership roles. For this purpose a long established Singapore perceptual database of corporate productivity practices is utilized. Two contrasting samples (N=65) of high and low adaptability manufacturing firms are obtained. Statistical technique of Pearson product correlation yields intriguing, contrasting patterns of findings. On the basis of these results, we then discuss the roles of CEOs in highly adaptive versus lowly adaptive manufacturing firms.FindingsThe results are seen through the lenses of molecular structuring of organizations suggest a sharp contrast in the nature of the roles of CEOs. In organizations that are highly adaptive, there is much closer interactions. In the lowly adaptive, CEOs seem uninvolved, staying aloof from core operations of their firms.Research limitations/implicationsSince, the contrasting samples are from within the manufacturing sector, these insights are particularly relevant to China as a global manufacturing centre.Originality/valueThis is the first paper of its kind to empirically validate the prescriptions of Lao Tzu, the ancient Chinese sage and author of the 2,500 years old Tao Te Ching.