CEO-CIO Shared Understanding of the Role of Technology: Outcomes for Technological Innovation Value

Lohmar, David; Nüesch, Stephan

Zusammenfassung

In this paper, we propose that contextual “language style matching” between CEO and CIO - a form of similarity in verbal style based on the unconscious use of function words - can provide insight into the quality of collaboration between CEO and CIO. Following upper echelon and managerial cognition research, we argue that high levels of language style matching between the CEO and CIO when discussing the role of technology for the business reflects a shared understanding of the role of technology. As CEO-CIO shared understanding aligns technology innovation with overall business strategy, the economic value of the firm’s technological innovations increases. Counterintuitively, we expect the relationship to weaken when CEOs are overly optimistic, as CEOs are less likely to question technological innovation from a business standpoint. Thus, the shared understanding of the CEO and CIO is misguided. Using panel data, we find empirical support for these predictions.