Being extraordinary: How CEOS' uncommon names explain strategic distinctiveness

• Date: 01 February 2021
• Author: Yan Anthea Zhang,David H. Zhu,Yungu Kang
• DOI: http://doi.org/10.1002/smj.3231
• Published date: 01 February 2021

RESEARCH ARTICLE

Being extraordinary: How CEOS' uncommon

names explain strategic distinctiveness

Yungu Kang

1

| David H. Zhu

1

| Yan Anthea Zhang

2

1

W. P. Carey School of Business, Arizona State University, Tempe, Arizona

2

Jesse H. Jones Graduate School of Business, Rice University, Houston, Texas

Correspondence

David H. Zhu, W. P. Carey School of

Business, Arizona State University,

Tempe, AR.

Email: david.zhu@asu.edu

Funding information

National Natural Science Foundation of

China, Grant/Award Number: 71628202;

Fudan University

Abstract

Research summary: We build upon recent theories

and studies about relational self to explain how a CEO's

uncommon name may be related to a firm's strategic

distinctiveness. Our theory explains why CEOs with

uncommon names tend to develop a conception of

being different from peers and accordingly pursue strat-

egies that deviate from industry norms. We further sug-

gest that the positive relationship between CEO name

uncommonness and strategic distinctiveness is

strengthened by the CEO's confidence, power, and

environmental munificence. Using name commonness

data from the U.S. Social Security Administration and

financial data of 1,172 public firms over a 19-year

period, we find support for our theoretical predictions.

Managerial summary: Using 19 years of data on

1,172 public firms, we show that firms' distinctive strat-

egies are systematically linked to their CEOs' uncom-

mon names. Psychological studies suggest that

individuals with uncommon names tend to have a self-

conception of being different from their peers.

Although many people may not have the confidence to

exhibit how unique they believe themselves to be,

CEOs do—they are generally confident individuals. It is

thus predicted that CEOs with more uncommon names

tend to pursue strategies that deviate more from their

peer firms'. This pattern is even clearer when CEOs

Received: 14 June 2019 Revised: 5 August 2020 Accepted: 17 August 2020 Published on: 14 September 2020

DOI: 10.1002/smj.3231

462 © 2020 Strategic Management Society Strat Mgmt J. 2021;42:462–488.wileyonlinelibrary.com/journal/smj

have a higher level of confidence, possess greater

power, and operate businesses in an environment with

more growth opportunities. Looking for unconven-

tional leaders? You can often tell by their names.

KEYWORDS

CEOs, confidence, environmental munificence, identity, power,

relational self, strategic distinctiveness, strategic leadership,

uncommon names, upper echelons

1|INTRODUCTION

The influence of top executives on firm strategies and performance is one of the most studied

topics in strategic management. Research shows that top executives have substantial influence

on organizational performance (e.g., Mackey, 2008), and such influence has increased over time

(Quigley & Hambrick, 2015). Many studies have further examined how major organizational

outcomes are associated with specific characteristics of top executives, including their personali-

ties, values, experiences, and demographic characteristics (see review by Finkelstein,

Hambrick, & Cannella, 2009; Westphal & Zajac, 2013). While these studies have greatly

enhanced our understanding about how top executives influence their organizations, little con-

ceptual or empirical work has examined perhaps one of the most fundamental attributes of

chief executive officers (CEOs): their names.

A long tradition of research in psychology suggests that an individual's name is a key anchor

point of identity (Allport, 1937) and an important determinant of personality development

(Walton, 1937). In particular, a considerable body of works shows that the uncommonness of

an individual's name substantially influences others' views of the individual and the individual's

self-perception and behavior (e.g., Cotton, O'Neill, & Griffin, 2008; Kalist & Lee, 2009; Levine &

Willis, 1994). Despite rich evidence that name uncommonness affects people's self-conception,

cognition, and behavior, organization scholars have not yet examined how it may explain CEOs'

strategic choices.

Building upon recent theories and studies in social psychology on relational self, which

explains why people with uncommon names tend to have a self-conception of being different

from peers, we investigate how CEOs with more uncommon names may exhibit a self-

perception of being different from peers and accordingly pursue greater strategic

distinctiveness—the degree to which a firm's strategy differs from the strategies of other firms

in the same industry (Crossland, Zyung, Hiller, & Hambrick, 2014; Geletkanycz &

Hambrick, 1997; Miller & Chen, 1996; Wowak, Manno, Arrfelt, & McNamara, 2016). In addi-

tion, we explain why the positive relationship between CEO name uncommonness and strategic

distinctiveness is stronger when the CEO is more confident, when the CEO has greater power,

and when the environment is more munificent. Using data on American name commonness

from the U.S. Social Security Administration and financial data of U.S. firms, we find empirical

support for our theoretical predictions.

Our study makes important contributions to research on strategic leadership. While extant

research has focused on top executives' demographic characteristics, personalities, values, and

experiences (Finkelstein et al., 2009; Westphal & Zajac, 2013), we identify the uncommonness

KANG ET AL.463