Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

3-2026

Abstract

This study investigates how CEOs’ construal levels affect firm decision-making. Grounded in Construal Level Theory (CLT) and Upper Echelons Theory (UET), the study posits that CEOs with a high construal level tend to pay attention to long-term goals and central priorities, thereby fostering innovation, risk-taking, and long-term oriented decisions within firms. Moreover, this study posits that various factors at different levels affect the link between CEO construal level and firm decision-making. Specifically, it examines how market competition, state ownership, and CEO tenure can enhance or diminish the influence of CEO construal level on firms’ critical decisions such as innovation, risk-taking, as well as long-term strategic orientation. Data for model testing were obtained from multiple sources. To mitigate common method bias, CEOs and senior managers from each sampled Chinese firm were surveyed: CEOs reported on independent variables while senior managers evaluated dependent variables. After matching responses within firms, the final sample comprises 153 firms. Regression analyses yield empirical support for the hypothesized associations, and findings remain robust to alternative measures of key variables. By illuminating the role of CEO construal level in firms’ decision-making and identifying its boundary conditions, this dissertation contributes valuable insights to the microfoundations of corporate decision-making research, extends the application of CLT in strategic management, and expands research on UET. Additionally, it provides actionable insights for organizations seeking to improve CEO appointment strategies and decision-making processes.

Keywords

CEO, firm decision-making, innovation, risk-taking, long-term oriented decisions, upper echelons theory, construal level theory

Degree Awarded

SMU-SJTU Doctor of Business Administration

Discipline

Entrepreneurial and Small Business Operations | Strategic Management Policy

Supervisor(s)

CHEN, Liang

First Page

1

Last Page

92

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

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Available for download on Thursday, June 17, 2027

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