Strategic Flexibility, Manager Personality, and Firm Performance: The Case of Indian Automobile Industry

The study aims to examine the relationship between manager personality, strategic flexibility, and firm performance. Using the five-factor personality model, the study hypothesizes the relationship between manager personality and strategic flexibility. Further, we propose that strategic flexibility mediates the relationship between manger personality and firm performance. A sample of 162 managers from various automobile companies is used for conducting empirical analysis. The findings of the study highlight the important role of managers’ personality in deciding strategic direction of the firm and hence performance of the company. Our research contributes to literature by delineating how each facet of the personality either augments or inhibits the development of strategic flexibility in an organization. © 2019, Global Institute of Flexible Systems Management.