How does the sociodemographic profile of the CEO affect a company’s market orientation? The case of Senegalese SMEs

Abstract

Why do some CEOs more than others influence the degree of market orientation of their business? According to upper echelons theory, a company’s degree of market orientation is likely to depend on the sociodemographic profile of the CEO. This article addresses two issues: (1) What are the sociodemographic characteristics of CEOs that influence the degree of market orientation of a company and what are their respective weights? (2) How do these characteristics exert their effects? From a sample of 188 CEOs of Senegalese small and medium-sized enterprises (SMEs), we find that the CEO’s age and experience in the industry influences the degree of the company’s market orientation and that the effects of these characteristics are mediated by the cross-functional coordination level of the company.