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Individual Executive Characteristics: Explaining the Divergence Between Perceptual and Financial Measures in Nonprofit Organizations

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Abstract

Using survey data collected from chief executives of nonprofit organizations and financial performance information, the current study examined the influence of the individual chief executive characteristics on their perception of organization performance. The study found that executives with internal Locus of Control, high collectivism values, and analytical decision styles have greater convergence between their perceptions of performance and a financial measure. The study findings also offer support for existing theories that suggest executive cognitions play a significant role in filtering information, ultimately influencing the accuracy of perceptions and the effectiveness of strategic choices.

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Authors and Affiliations

  1. Department of Management, College of Business, Florida Gulf Coast University, 10501 FGCU Blvd. S., Ft. Myers, FL, 33965, E-mail:

    William J. Ritchie & Arthur J. Rubens

  2. Department of Management, College of Business, Florida State University, Tallahassee, FL, 32306, E-mail:

    William P. Anthony

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  1. William J. Ritchie
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  2. William P. Anthony
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  3. Arthur J. Rubens
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Ritchie, W.J., Anthony, W.P. & Rubens, A.J. Individual Executive Characteristics: Explaining the Divergence Between Perceptual and Financial Measures in Nonprofit Organizations. Journal of Business Ethics 53, 267–281 (2004). https://doi.org/10.1023/B:BUSI.0000039417.15488.17

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