Understanding how chief technology officer roles affect performance
Çetindamar, Dilek and Pala, Okan (2009) Understanding how chief technology officer roles affect performance. (Submitted)
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This paper aims to assess the impact of a Chief Technology Officer (CTO) on firm performance by using upper-echelon theory. The study tries to accomplish this goal by focusing on the realisation of the CTO roles within a company regardless of who carries out these roles; either a formalised position such as CTO or not. Thus, it investigates two questions: 1) do CTO roles affect a firm’s performance and 2) which features of the senior manager in charge of technology influence performance? Based on a survey of 49 firms in electronics and machinery industries in Turkey, this explorative study finds two results: 1) the fulfilment of CTO roles increases a firm’s profitability and 2) having a separate managerial position to manage technology improves profitability further. Moreover, the study clearly shows the role of social capital theory in explaining how the company performance is likely to increase when the CTO/CTO-proxy manager is placed higher in the organisational ladder. The paper ends with the discussion of some managerial implications of the study findings.
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