Exploring Paths to High Performance Under CEO Duality: A Configurational Governance Study

This study examines the performance implications of CEO duality from a configurational governance perspective, with particular attention given to its relevance within an ESG-oriented framework. While prior research on CEO duality has produced inconsistent findings, much of the literature relies on variable-centered approaches that overlook the systemic and context-dependent nature of governance mechanisms. Drawing on agency theory, stewardship theory, and resource dependence theory, we analyze 59 publicly listed South Korean firms between 2018 and 2022 using fuzzy-set qualitative comparative analysis (fsQCA). Five governance-related conditions—CEO duality, ownership concentration, CEO tenure, institutional ownership, and environmental dynamism—are calibrated into fuzzy sets to identify causal configurations associated with high firm performance, defined as membership in the top 30% of return on assets (ROA). The results reveal six equifinal pathways to high performance, two of which exhibit particularly strong consistency and coverage. These dominant configurations show that CEO duality contributes positively to performance when embedded in either strong internal governance alignment or robust external monitoring under dynamic conditions. By demonstrating that the effectiveness of CEO duality is contingent upon its governance configuration, this study challenges one-size-fits-all prescriptions and contributes to the ESG literature by highlighting the conditional role of leadership structure in sustainable value creation.