Emotional Expression between CEO and Chairperson as a Micro‐Foundation of Organizational Capabilities: An Exploratory Mixed Methods Study

Abstract The work relationships between CEOs and Chairpersons are key to the functioning of the firm. This study uses survey and interview data to explore how these work relationships serve as a micro‐foundation for an organization's communication climate. Survey data suggested that CEO‐Chairperson relationships can be characterized by emotional carrying capacity (ECC; constructively expressing more positive and negative emotions). The survey‐based model further demonstrated that CEOs and Chairpersons perceive their ECC to positively predict organizational communication climate and, in turn, knowledge creation capabilities. The latter, in turn, are positively associated with firm performance. CEO‐Chairperson dyadic interview data supplemented the associations identified in our survey model. Interviewees identified specific mechanisms behind the associations in the survey model, such as the strategic sharing of positive and negative emotions. Our mixed‐methods approach provides initial evidence for the importance of emotional expression and management as micro‐relational foundations that underpin firm‐level capabilities and performance.