How does CEO personality affect new product development performance? The partial mediating role of strategic schema change

Purpose This study aims to explore the direct impact of various personality traits of the CEO on new product development (NPD) performance, as well as the mediating role of strategic schema changes in the relation among these key variables. Design/methodology/approach The research focuses on Chinese science and technology enterprises. A total of 659 valid responses from CEOs and senior managers have been analyzed to test the hypotheses. Findings The results reveal that CEO’s conscientiousness and agreeableness negatively correlate with NPD performance and strategic schema changes. CEO traits such as extroversion, openness to experience and emotional stability are positively associated with both variables. Furthermore, the study confirms that strategic schema changes partially mediate the relation between CEO personality traits and NPD performance. Research limitations/implications This study focuses only on the relation between CEOs’ Big Five personality traits and NPD performance. However, other personality traits such as narcissism or dark personality traits may also influence NPD performance. Future research should explore the effect of a broader range of CEO personality traits on corporate performance. And, this paper primarily investigates the mediating role of strategic schema change between CEO personality and NPD performance, drawing on personality psychology and strategic cognition. However, other important theoretical perspectives, such as organizational resources and binary learning, may offer additional insights into the relation between CEO personality and NPD performance. Future research could delve deeper into these perspectives at multiple levels for a more comprehensive understanding. Originality/value The findings broaden the application of personality psychology within innovation management, offering valuable practical insights and new perspectives for technology enterprises seeking to enhance new product performance.