Chief strategy officers: Contingency analysis of their presence in top management teams

Abstract

Drawing upon contingency theory, we analyze the antecedents and performance consequences of chief strategy officer ( CSO ) presence in top management teams ( TMTs ). We argue that strategic and structural complexity affects the decision to have a CSO in the TMT and its effect on firm performance. The results of a sample of S&P 500 firms over a five‐year period reveal that diversification, acquisition activity, and TMT role interdependence are positively associated with CSO presence. However, we also find that the structural choice to have a CSO in the TMT does not significantly affect a firm's financial performance. This first systematic analysis of CSO presence informs research on CSOs and contributes to the emerging literature on TMT structure . Copyright © 2013 John Wiley & Sons, Ltd.