CEO Strategic Locus of Control Effects on Game Performance and Playing Behavior

Abstract

The effects of a business game player’s locus of control on company performance, risk-taking behavior, information-seeking activity and product innovation effort was examined. Those with an internal orientation out-performed those with an external orientation. The ‘internals” mounted consistently higher product innovation efforts as hypothesized. The hypothesis regarding risk-taking behavior was not supported while the hypotheses regarding differential information-seeking activity were untestable due to a general lack of information acquisition. Locus of control and grade-point-average were relatively strong predictors of company economic performance.