Time for future is now: CEO temporal focus and firms' interpretation of grand challenges

Abstract

This study examines how CEO temporal focus – the extent to which CEOs devote their attention to the past, present, and future – shapes firms’ interpretation of the grand challenge water scarcity. We propose that CEO temporal focus influences interpretations of water scarcity either as threat or as opportunity. Using a panel data set of German firms, we find support for our three hypotheses: CEOs who are high in present focus tend to interpret water scarcity as threat. However, to tackle water scarcity ,in terms of interpreting water scarcity as opportunity, they need to be future-oriented. Further, future-oriented CEOs shy away from interpreting water scarcity as a pure threat. These findings contribute to the literature on strategic implications of CEOs’ subjective view of time.