CEO Attentional Vigilance: Behavioral Implications for the Pursuit of Exploration

This study proposes that CEO attentional vigilance, defined as maintaining a consistent level of attention over time, can contribute to a firm's pursuit of exploration. Using data from new product introductions in the software industry, along with a text-based measure of attentional vigilance derived from earnings conference calls, I find that CEO attentional vigilance to exploration has a positive effect on the firm's rate of exploration. Additionally, I observe that this positive impact is more pronounced when a firm's financial performance falls below aspiration levels. Furthermore, based on an analysis of Glassdoor review data, I demonstrate that the level of satisfaction among employees in explorative units partially mediates the effect of CEO attentional vigilance on the firm's pursuit of exploration. The findings hold significant implications for research in the attention-based view, performance feedback, and micro-foundations of strategy.