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NTU Management Review Vol. 34 No. 2 Aug. 2024

diverse perspectives and alternative viewpoints might hinder the ability of extraverted
CEOs to drive innovation and make well-informed strategic choices that ultimately enhance
firm performance. Therefore, TMT homogeneity can potentially limit the potential of
extraverted CEOs to positively influence their organizations’ performances.

In addition, when a company has a higher equity risk, the positive effect of CEO
extraversion on firm performance weakens because extraversion makes CEOs more likely
to take more risks. However, if a firm with a high equity risk adopts bold policies, it might

not significantly enhance performance and could even lead to overly aggressive actions
that negatively affect performance. As a result, in companies with higher equity risks, the
positive connection between CEO extraversion and firm performance is likely to decrease.
Conversely, market competitiveness may strengthen the positive impact of CEO
extraversion traits on firm performance. This is possible because in highly competitive

industries, strategic decisions facilitated by CEO extraversion are crucial for maintaining
flexibility in strategy formulation and sustaining competitive advantages. Therefore,
higher market competitiveness enhances the benefits of strategic flexibility brought about

by CEO extraversion, leading to an amplified positive relationship between these traits and
firm performance.
Finally, TMT shared experience strengthens the positive impact of CEO extraversion
on firm performance. This means that a higher degree of shared working experiences
enhances trust and coordination among team members, led by the CEO, thereby boosting

work efficiency. As a result, this amplifies the favorable effects of innovative changes in
strategic decisions made by extraverted CEOs on firm performance.

5. Originality/Contribution

This study supplements prior literature and expands earlier studies as well. First,
we focus on large corporations within the S&P 500, which contrasts with the study by
Herrmann and Nadkarni (2014), where small and medium enterprises are the targets.

Moreover, compared to Harrison et al. (2020), who discuss issues related to equity
markets, we consider the operational performance of firms. Finally, this study further
examines the moderating mechanisms of TMT characteristics and market competitiveness.
In conclusion, this study not only provides external investors with a fresh perspective

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