Selection system orientations as an explanation for the differences between dual leaders of the same organization in the

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Selection system orientations as an explanation for the differences between dual leaders of the same organization in their perception of organizational performance Pawan V. Bhansing1 • Mark A. A. M. Leenders2 Nachoem M. Wijnberg3



 The Author(s) 2015. This article is published with open access at Springerlink.com

Abstract We investigate to what extent individual managers operating in a dual leadership structure have different perceptions of how well his/her organization is performing. Using selection system theory we develop hypotheses on the relationships between a leader’s selection system orientation and his/her perception of performance along multiple dimensions: market performance, expert performance and peer performance. The hypotheses are tested using dyadic data from 59 organizations in the performing arts led by two—hierarchically equivalent—managers. Our results show that dual leaders’ differences in terms of market orientation and expert orientation relate positively to perceived performance differences along the same dimensions. This relationship is not found with respect to peer selection orientation. Generally, the relationship between orientation differences and perceived performance differences is stronger if the process of interpreting signals to construct a perception of organizational performance leaves more room for equivocality and uncertainty. Keywords Dual leaders  Co-leaders  Perception of performance  Selection systems  Mental models & Pawan V. Bhansing [email protected] Mark A. A. M. Leenders [email protected] Nachoem M. Wijnberg [email protected] 1

Arts and Culture Studies, Faculty of History, Culture and Communication, Erasmus University Rotterdam, P.O. Box 1738, 3000 DR Rotterdam, The Netherlands

2

RMIT University, 379 Russell Street, Melbourne, VIC 3000, Australia

3

Entrepreneurship and Innovation, University of Amsterdam Business School, Plantage Muidergracht 12, 1018 TV Amsterdam, The Netherlands

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1 Introduction Most organizations have more than one organizational objective (Cuccurullo and Lega 2013; Denis et al. 2012). One possible structural solution to handle multiple strategic objectives in small and large firms is the dual executive leadership structure (i.e. co-CEO structure) (Alvarez and Svejenova 2005; Denis et al. 2012; Reid and Karambayya 2009), in which the organization is led by two hierarchically equivalent executives, each of whom is responsible for one of the main objectives. Dual leadership can bring many advantages, resulting from the ability of the individual managers to be more specialized than a single CEO could be, and also because of the broader field of vision two managers with strongly different perspectives will have together (Alvarez and Svejenova 2005; Fjellvaer 2010; Heenan and Bennis 1999; Reid and Karambayya 2009). Of course, compared to a single CEO, a dual executive leadership structure will also increase the risk of disagreement (Reid and Karambayya 2009). When one leader thinks achieving aim x