The influence of CEO characteristics on corporate environmental performance of SMEs: Evidence from Vietnamese SMEs

Drawing on upper echelon theory, this study investigates the impact of CEOs’ (chief executive officers) demographic characteristics on corporate environmental performance (CEP) in small and medium-sized enterprises (SMEs). We hypothesized that CEO characteristics, including gender, age, basic educat...

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Main Authors: Nhat Minh Tran, Bich-Ngoc Thi Pham
Format: Article
Language:English
Published: Growing Science 2020-01-01
Series:Management Science Letters
Subjects:
Online Access:http://www.growingscience.com/msl/Vol10/msl_2020_13.pdf
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author Nhat Minh Tran
Bich-Ngoc Thi Pham
author_facet Nhat Minh Tran
Bich-Ngoc Thi Pham
author_sort Nhat Minh Tran
collection DOAJ
description Drawing on upper echelon theory, this study investigates the impact of CEOs’ (chief executive officers) demographic characteristics on corporate environmental performance (CEP) in small and medium-sized enterprises (SMEs). We hypothesized that CEO characteristics, including gender, age, basic educational level, professional educational level, political connection, and ethnicity, affect SMEs’ environmental performance. Using the cross-sectional data analysis of 810 Vietnamese SMEs, this study provides evidence that female CEOs and CEOs’ educational level (both basic and professional) are positively related to the probability of CEP. We also find that based on the role of institutional environment on CEP, political connections had a negative effect on CEP in the context of Vietnam. Another finding is that SMEs with chief executives from ethnic minority groups show a higher level of the probability of corporate environmental performance than companies operated by Kinh chief executives. Since CEP is an essential dimension of corporate social responsibility, a strategic decision for SMEs, it is crucial for the company to select appropriate CEOs based on their demographic characteristics.
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spelling doaj.art-3ad638d39f5a4df79146cdb365492e1c2022-12-21T20:34:46ZengGrowing ScienceManagement Science Letters1923-93351923-93432020-01-011081671168210.5267/j.msl.2020.1.013The influence of CEO characteristics on corporate environmental performance of SMEs: Evidence from Vietnamese SMEsNhat Minh TranBich-Ngoc Thi Pham Drawing on upper echelon theory, this study investigates the impact of CEOs’ (chief executive officers) demographic characteristics on corporate environmental performance (CEP) in small and medium-sized enterprises (SMEs). We hypothesized that CEO characteristics, including gender, age, basic educational level, professional educational level, political connection, and ethnicity, affect SMEs’ environmental performance. Using the cross-sectional data analysis of 810 Vietnamese SMEs, this study provides evidence that female CEOs and CEOs’ educational level (both basic and professional) are positively related to the probability of CEP. We also find that based on the role of institutional environment on CEP, political connections had a negative effect on CEP in the context of Vietnam. Another finding is that SMEs with chief executives from ethnic minority groups show a higher level of the probability of corporate environmental performance than companies operated by Kinh chief executives. Since CEP is an essential dimension of corporate social responsibility, a strategic decision for SMEs, it is crucial for the company to select appropriate CEOs based on their demographic characteristics.http://www.growingscience.com/msl/Vol10/msl_2020_13.pdfceos’ demographic characteristicsvietnamese smescorporate environmental performance
spellingShingle Nhat Minh Tran
Bich-Ngoc Thi Pham
The influence of CEO characteristics on corporate environmental performance of SMEs: Evidence from Vietnamese SMEs
Management Science Letters
ceos’ demographic characteristics
vietnamese smes
corporate environmental performance
title The influence of CEO characteristics on corporate environmental performance of SMEs: Evidence from Vietnamese SMEs
title_full The influence of CEO characteristics on corporate environmental performance of SMEs: Evidence from Vietnamese SMEs
title_fullStr The influence of CEO characteristics on corporate environmental performance of SMEs: Evidence from Vietnamese SMEs
title_full_unstemmed The influence of CEO characteristics on corporate environmental performance of SMEs: Evidence from Vietnamese SMEs
title_short The influence of CEO characteristics on corporate environmental performance of SMEs: Evidence from Vietnamese SMEs
title_sort influence of ceo characteristics on corporate environmental performance of smes evidence from vietnamese smes
topic ceos’ demographic characteristics
vietnamese smes
corporate environmental performance
url http://www.growingscience.com/msl/Vol10/msl_2020_13.pdf
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