Managers’ trait affectivity and cognitive ability as drivers of business practices

An under-researched question is to what extent managers’ trait affectivity and cognitive ability play a role in driving business practices. As such, we carry out a survey with 623 textile and garment firms in Vietnam. We find that one standard deviation decrease in the managers’ negative affectivity...

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Autor principal: Huong Trang Kim
Formato: article
Lenguaje:EN
Publicado: Taylor & Francis Group 2021
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Acceso en línea:https://doaj.org/article/45c697fcaf2b40508d384a3ca1c0ce7b
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Sumario:An under-researched question is to what extent managers’ trait affectivity and cognitive ability play a role in driving business practices. As such, we carry out a survey with 623 textile and garment firms in Vietnam. We find that one standard deviation decrease in the managers’ negative affectivity is associated with a 2.28% increase in business practices. Additionally, increasing managers’ positive affectivity and cognitive ability levels by one point would lead to 1.836% and 2.16% higher business practices, respectively. Notably, these effects on marketing practices are strongest. We also found evidence that decision-making on business practices in large firms largely depends on managers’ trait affectivity. At the same time, the cognitive ability of managers in SMEs has a strong effect on business practices.