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Journal of Management
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CEO Positive Psychological Traits, Transformational Leadership, and Firm Performance in High-Technology Start-up and Established Firms

Suzanne J. Peterson

School of Global Management and Leadership, Arizona State University, PO Box 37100, Phoenix, AZ 85069, Suzanne.peterson{at}asu.edu

Fred O. Walumbwa

School of Global Management and Leadership, Arizona State University, PO Box 37100, Phoenix, AZ 85069

Kristin Byron

Whitman School of Management, Syracuse University, 721 University Ave., Syracuse, NY 13244-2450

Jason Myrowitz

W.P. Carey School of Business, Arizona State University, PO Box 874006, Tempe, AZ 85287-4006

This study examines the relationships among positive psychological traits (hope, optimism, resiliency), transformational leadership, and firm performance in high-technology start-up (n = 49) and established firm (n = 56) contexts, using structural equation modeling. Results reveal that the positive psychological traits of CEOs positively relate to transformational leadership ratings. Furthermore, the extent to which leaders are rated as transformational fully mediates the relationship between the leaders' positive psychological traits and their firms' performance. Last, transformational leadership is more strongly related to firm performance in start-up than in established firms. Implications for theory and practice are discussed.

Key Words: transformational leadership • positive psychology • CEO traits • firm performance

This version was published on March 1, 2009

Journal of Management, Vol. 35, No. 2, 348-368 (2009)
DOI: 10.1177/0149206307312512
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