The effect of generalist CEOs on social novelty in the restaurant industry

Purpose: Through the lens of the upper echelons theory, this study aims to investigate how generalist chief executive officers (CEOs) affect social novelty. This paper also explores the moderating effect of CEO power on the relationship between generalist CEOs and social novelty. Design/methodology/approach: This study uses generalized estimating equation models and robust standard errors by firm to correct for autoregressive disturbances within clusters in the data. Findings: Restaurant firms with generalist CEOs are likely to feature gender diversity and member change in the top management structure. This positive effect of a generalist CEO on top management team’s (TMT) structure is enhanced by the CEO’s power over board members. Practical implications: This study presents important evidence that CEOs’ characteristics largely influence the gender heterogeneity and dynamic of the TMT, which in turn promote and shape innovative initiatives and actions. Originality/value: To the best of the authors’ knowledge, this paper is one of the first to investigate the effect of CEOs’ human capital on the way in which the TMT is composed and characterized in the restaurant sector.