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THE IMPACT OF ORGANIZATIONAL GOAL SETTING ON THE INDUSTRIAL MUNIFICENCE-GOAL ATTAINMENT RELATIONSHIP
Abstract
In seeking to exploit environmental resources and opportunities, CEOs can either set multiple goals or narrow their focus on a few targets for the organizations. What approach will help organizations to benefit more from industrial munificence? In this paper, we investigate the moderating effects of CEOs’ goal setting (including the number of goals and the prioritization of these goals) on the relationship between industrial munificence and the satisfaction of goal attainment. By examining 277 small and medium-size firms in four countries, we find that CEOs need to stretch their goal list while keeping a clear priority order among these goals in order to capitalize on industrial munificence. Implications of our study are discussed.
Keywords: Goal Attainment, Industrial Munificence, Goal Complexity, Goal Diversity