Emotional Rollercoaster: The Inverted U-Shaped Relationship between CEO Emotions and Innovation Outcomes

Research output: Chapter in book/report/conference proceedingConference contributionResearchpeer review

Authors

  • Marika Platz
  • Thomas Schäper
  • Johann Nils Foege

External Research Organisations

  • University of Münster
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Details

Original languageEnglish
Title of host publicationInternational Conference on Information Systems, ICIS 2023
Subtitle of host publication"Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies"
PublisherAssociation for Information Systems
ISBN (electronic)9781713893622
Publication statusPublished - 2023
Event44th International Conference on Information Systems: Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies, ICIS 2023 - Hyderibad, India
Duration: 10 Dec 202313 Dec 2023

Publication series

NameInternational Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies"

Abstract

While the literature suggests that CEOs’ emotions can affect organizational decision-making, leadership, and employee engagement, we know little about how they influence firms’ culture and outcomes of innovation. Acknowledging that innovation is a critical element for long-term success, we investigate the relationship between CEO emotions and firm innovation. The results of our analysis of 1,903 firm-year observations supports our theorizing of an inverted U-shaped relationship between CEO emotions and innovation outcomes. The findings show that moderate levels of emotions lead to the highest innovation outcomes, while extremely high or low levels decrease innovation. This study contributes to the literature by applying the Yerkes-Dodson law within upper echelon theory, demonstrating a non-linear relationship between CEO emotions and innovation, and utilizing a novel algorithm to measure CEO emotions more objectively.

Keywords

    CEO Emotions, Innovation Outcomes, Natural Language Processing, Neural Network

ASJC Scopus subject areas

Cite this

Emotional Rollercoaster: The Inverted U-Shaped Relationship between CEO Emotions and Innovation Outcomes. / Platz, Marika; Schäper, Thomas; Foege, Johann Nils.
International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies". Association for Information Systems, 2023. (International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies").

Research output: Chapter in book/report/conference proceedingConference contributionResearchpeer review

Platz, M, Schäper, T & Foege, JN 2023, Emotional Rollercoaster: The Inverted U-Shaped Relationship between CEO Emotions and Innovation Outcomes. in International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies". International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies", Association for Information Systems, 44th International Conference on Information Systems: Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies, ICIS 2023, Hyderibad, India, 10 Dec 2023.
Platz, M., Schäper, T., & Foege, J. N. (2023). Emotional Rollercoaster: The Inverted U-Shaped Relationship between CEO Emotions and Innovation Outcomes. In International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies" (International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies"). Association for Information Systems.
Platz M, Schäper T, Foege JN. Emotional Rollercoaster: The Inverted U-Shaped Relationship between CEO Emotions and Innovation Outcomes. In International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies". Association for Information Systems. 2023. (International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies").
Platz, Marika ; Schäper, Thomas ; Foege, Johann Nils. / Emotional Rollercoaster : The Inverted U-Shaped Relationship between CEO Emotions and Innovation Outcomes. International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies". Association for Information Systems, 2023. (International Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies").
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AU - Schäper, Thomas

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N2 - While the literature suggests that CEOs’ emotions can affect organizational decision-making, leadership, and employee engagement, we know little about how they influence firms’ culture and outcomes of innovation. Acknowledging that innovation is a critical element for long-term success, we investigate the relationship between CEO emotions and firm innovation. The results of our analysis of 1,903 firm-year observations supports our theorizing of an inverted U-shaped relationship between CEO emotions and innovation outcomes. The findings show that moderate levels of emotions lead to the highest innovation outcomes, while extremely high or low levels decrease innovation. This study contributes to the literature by applying the Yerkes-Dodson law within upper echelon theory, demonstrating a non-linear relationship between CEO emotions and innovation, and utilizing a novel algorithm to measure CEO emotions more objectively.

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