How Do Masculine CEOs Influence Radical Innovation: A Goal-Orientation Perspective

How does CEO masculinity – captured by the CEO’s facial Width-to-Height Ratio (fWHR) – influence radical innovation? CEOs with high fWHR have higher levels of the steroid hormone testosterone, an aspect that influences behavior and leads to stronger achievement-drive for radical innovation. Yet, radical innovation is a trial-and-error learning process, requiring leaders to motivate learning and adaptation through empathy and relational leadership – an attribute of CEOs at low masculinity levels. Building on goal-orientation theory, we reconcile these opposing views, by positing that the effect of CEO masculinity on radical innovation is neither positive nor negative, but rather U-shaped. CEOs at relatively higher and lower levels of the masculinity continuum are more likely to boost radical innovation compared to their counterparts at moderate levels – as they identify more readily with: (a) a learning goal-orientation (at low masculinity levels), or (b) a performance prove goal-orientation (at high masculinity levels). We also maintain that this U-shape relationship becomes more pronounced with higher levels of TMT female-minority representation. Data from 140 CEOs, 82 pharmaceutical and bio-medical products firms between 2004 to 2020 support our predictions.