Positive Chair-CEO work relationships: Micro-relational foundations of organizational capabilities

With the increasing separation of the of the roles of the CEO and Chairperson, the interplay between them has been attracting considerable interest in both communities of scholarlship and practice. We examine the ways in which the work relationships between these two supreme executive functions may help in developing organizational processes and outcomes. In so doing, we shift the discussion from a corporate governance lens to examining how micro-level mechanisms, which are rooted in individual actions and interactions involving behavioral, cognitive and emotional mechanisms, may help cultivate higher-level processes and outcomes. Using a qualitative methodology in which pairs of Chairpersons and CEOs were interviewed, we developed a conceptual model which specifies how the nature of Chairperson-CEO work relationships may be conducive to cultivating organizational capabilities of knowledge creation and cultivate collective resilience, through the shaping of a supportive organizational communication climate. In so doing, we extended a micro-foundation framework by advancing a micro-relational lens to the corporate governance research and theory and more broadly to the literature on strategic leadership.