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The purpose of this paper is to test the effects of CEO arrogance on key attitudes of a company’s top management team (TMT).

An experimental design involving a business simulation is used to test the effects of a CEO’s perceived arrogance and humility on the TMT in a boardroom setting.

The study finds that, as predicted, arrogant CEOs adversely impacts TMT engagement, cohesiveness, collaboration and consensual decision-making. Thus, the higher the level of CEO arrogance, the lower the levels of positive TMT attitudes. The study intriguingly also finds that CEOs who displayed humility also negatively influenced the attitudes of the TMT.

The study took place in South Africa, which may limit the generalizability of the findings. The use of a laboratory experiment may affect the ecological validity of the findings.

The results demonstrate that a “Goldilocks” area of neutrality between arrogance and humility should be sought after by CEOs and recruiters of CEOs. If this is impossible, humble CEOs are preferable to arrogant ones.

This paper empirically demonstrates that arrogant leaders negatively impact their TMT followers in a boardroom environment across a number of attitudes that are keys to the success of effectively managing a corporation. The study also demonstrates that moderation is desired by followers and that CEOs being perceived as overly humble is almost as bad as being perceived as arrogant.

With an increasingly diverse workforce, teams need to handle differences among team members and be aware of the impact these differences have on team meetings. As meetings are strongly shaped by team member interactions, communication between team members is central to meeting success. In diverse teams, effective communication and information sharing is even more crucial than in homogeneous groups due to distinct perspectives and knowledge that group members bring to a team. However, effective communication is also more challenging in groups with diverse members than in homogeneous groups. Especially when there is a strong faultline, that is, when multiple attributes align and teams fall into subgroups, communication within the whole team is impaired and might only take place within subgroups. In this chapter, the authors discuss the role of faultlines in meeting interactions and turn to subgroup formation and its impact on interaction patterns within teams. The authors see intersubgroup communication as an important process that links faultlines to meeting outcomes such as performance or satisfaction. By spanning research areas connecting faultline and meeting research, the authors provide scholars with important research questions to be examined in the future. The authors further introduce a new measure of intersubgroup communication that provides insights into dynamics between subgroups. By relating intersubgroup communication to overall communication within a meeting and taking team size as well as different subgroup constellations into account, this measure facilitates studying intersubgroup communication in meetings. The authors provide formulas that scholars could apply to their research.

Successful teams tend to be highly cohesive and team cohesion to be particularly helpful in allowing teams and their members to sustain their success even in the most challenging times. One disillusioning consequence of this reciprocity between cohesion and performance would suggest that failures made by teams and/or their members likely jeopardize their success by preventing them from capitalizing on such virtuous circles associated with team cohesion. Yet, many teams uphold their performance despite the failures they have to cope with, suggesting that the potential vicious circles can be overcome. This chapter aims at illuminating the vicious and virtuous circles associated with team cohesion that are induced by either collective failures of teams or individual failures of their members. It therefore offers a multilevel perspective not only on the emergence and diffusion of failures at the individual and team levels, but also on the critical role that team cohesion plays for a team’s (dys)functional coping across these levels. It is theorized that collective failures triggered exogenously can help build team cohesion, and that whether endogenously-triggered collective failures bring about the vicious or the virtuous circles of team cohesion depends on whether the individual failures developing into collective failures are triggered endogenously or exogenously. The implications of this conceptual work are discussed in light of the literatures on error/failure management and group cohesiveness.

In this chapter, we explore the importance of morality in groups. We draw from decades of research from multiple perspectives, including psychology, neuroscience, philosophy, and organizational science, to illustrate the range of ways that morality influences social attitudes and group behavior. After synthesizing the literature, we identify promising directions for business ethics scholars to pursue. We specifically call for greater research on morality at the meso, or group, level of analysis and encourage studies examining the complex relationship between moral emotions and the social environment. We ultimately hope that this work will provide new insights for managing moral behavior in groups and society.

This paper aims to provide a comprehensive review of the literature on the determinants of stock market development.

The paper divides the existing studies into the theoretical and empirical literature. Then, it analyses these studies in turn.

Based on the theoretical literature, the determinants of stock market development can be broadly classified into two groups: macroeconomic factors and institutional factors. The theory and the empirics predict different ways in which macroeconomic factors affect stock market development. The real income and its growth rate foster stock market development, while the banking sector, interest rate and private capital flows can foster or inhibit it. Inflation and exchange rates have adverse effects on stock market development. In terms of the institutional factors, the literature indicates that different legal origins and stock market integration can have a positive or negative impact on stock market development. In addition, factors such as legal protection of investors, corporate governance, financial liberalisation and trade openness contribute positively to the development of the stock market.

From the survey, it is imperative that policies which aim at enhancing institutional quality, financial integration, real income growth, macroeconomic stability and capital inflows, among others, will certainly promote stock market development within and across countries. Although the empirical studies have incorporated a large set of variables in their models, the theoretical studies do not contain rich models of stock market development. It is understandable that a theoretical model which contains a large set of the determinants of stock market development may be difficult to solve. However, such a model seems very appealing and will provide a unification of the existing literature.

The originality of the paper lies in the fact that it is the first to undertake a survey of the determinants of stock market development in the literature. It is hoped that this paper will spur further theoretical and empirical research on the determinants of stock market development.

The recent financial and sovereign debt crises around the world have sparked a growing literature on models and empirical estimates of defaultable debt. Frequently households and firms come under default threat, local governments can default, and recently sovereign default threats were eminent for Greece and Spain in 2012–2013. Moreover, Argentina experienced an actual default in 2001. What causes sovereign default risk, and what are the escape routes from default risk? Previous studies such as Arellano (2008), Roch and Uhlig (2013), and Arellano et al. (2014) have provided theoretical models to explore the main dynamics of sovereign defaults. These models can be characterized as threshold models in which there is a convergence toward a good no-default equilibrium below the threshold and a default equilibrium above the threshold. However, in these models aggregate output is exogenous, so that important macroeconomic feedback effects are not taken into account. In this chapter, we (1) propose alternative model variants suitable for certain types of countries in the EU where aggregate output is endogenously determined and where financial stress plays a key role, (2) show how these model variants can be solved through the Nonlinear Model Predictive Control numerical technique, and (3) present some empirical evidence on the nonlinear dynamics of output, sovereign debt, and financial stress in some euro areas and other industrialized countries.

Teams are best positioned for success when certain enabling conditions are in place such as the right mix of individuals. Effective team staffing considers team members’ knowledge, skills, abilities, and other characteristics (KSAOs) as well as the configuration of team member KSAOs and their relations, called team composition. In practice, however, how to integrate team composition considerations into team staffing to facilitate outcomes such as team cohesion can seem nebulous. The purpose of this chapter is to describe how team member KSAOs and their configurations and relations affect team cohesion, and suggest how this information can inform team staffing. We frame team cohesion as an aspect of team human capital to understand when it may be an important consideration for staffing. We describe multilevel considerations in staffing cohesive teams. We summarize theories that link team composition to team cohesion via interpersonal attraction, a shared team identity, and team task commitment. Finally, we propose a six-step approach for staffing cohesive teams, and describe a few areas for future research.

Important demographic changes are causing organizations and teams to become increasingly age-diverse. Because knowledge sharing is critical to organizations’ long-term sustainability and success, both researchers and practitioners face a strategic dilemma: namely, finding ways to cultivate greater knowledge sharing among different age cohorts.

In this chapter, we claim that age diversity adds relevant opportunities and distinct challenges. On one hand, it increases demands for effective knowledge sharing: Employees of different ages are likely to hold diverse knowledge and capabilities that may be lost and/or poorly exploited if they are not effectively shared. On the other hand, age differences can activate age-related stereotypes and foster the formation of age subgroups, which can hamper social integration, communication, and ultimately, knowledge sharing.

Building on these insights, this chapter looks at the role of the human resource management (HRM) system as a key facilitator of effective knowledge sharing in age-diverse organizations. To this end, the chapter focuses on HR planning, training and development, performance appraisal, and reward systems, each of which can be used to develop the motivations, norms, and accountability structures that encourage employees of different ages to bridge their differences and integrate their unique perspectives and knowledge. This chapter suggests ways of tailoring HRM practices to unlock the benefits of age diversity, which may help organizations exploit and capitalize on the knowledge-based resources held by their younger and older employees.

To summarize and build on research that explores the influence of culture on team dynamics, particularly over time. Specifically, we explore culture and teams from a dynamic perspective by providing a framework for understanding both how culture influences team dynamics over time, and where interventions should be targeted at different points to maximize the potential benefits of cultural diversity.

Drawing from a prominent model of team development (Kozlowski, Gully, Nason, & Smith, 1999), we provide mechanisms through which culture exerts an influence, as well as the practical approaches that will be best suited for mitigating potential negative effects at different points in time.

We focus on the following phases: team formation, task compilation, role compilation, team compilation, as well as team maintenance. At first, surface-level characteristics and subgroup formation should be closely monitored along with interventions to develop a group identity when teams are being formed. Later on, emergent states (e.g., trust, conflict) can come to the forefront as team members can develop multiple memberships or yet be resistant to performing in an adaptive manner.

We identify key avenues for future research to serve as a foundation for those studying the cultural diversity within teams via temporal lens, including the role of context and going beyond Hofstede’s cultural dimensions.

Albeit research has started to accumulate regarding how culture influences teams through conflict, communication, trust, cohesion, and creativity, this chapter goes beyond current development to address when different cultural elements influence team dynamics.