Self-Care in Top Management Teams and Firm Performance

Introduction

The concept of self-care carries significance in both individual and organizational contexts. At the individual level, self-care is grounded in Conservation of Resources (COR) Theory, which argues that individuals need to engage in activities or accumulate resources that help them maintain their strength and vitality. At the organizational level, the resource-based view (RBV) of the firm suggests that competitive advantage can be gained by accumulating and deploying valuable resources. Top management teams (TMTs) play a critical role in shaping the direction and performance of firms, yet the demands and stresses of these roles can negatively impact the well-being of TMT members, leading to burnout and decreased performance.

Self-care has gained increasing attention as a means to mitigate the adverse effects of stress and promote well-being among individuals. The central argument of this paper is that TMT self-care is a potential resource that can be leveraged as a competitive advantage for organizations. Specifically, it is proposed that TMT self-care can enhance TMT climate and cohesion, which in turn can improve TMT performance. Additionally, it is hypothesized that TMT cohesion/climate will mediate the relationship between TMT self-care and performance, and that the moderating effect of stakeholder self-care values on this relationship will be significant.

Theoretical Background

COR Theory is a psychological framework proposing that individuals are motivated to protect and build their resources in order to maintain their well-being and reduce stress. In this theory, resources refer to any object, personal characteristic, condition, or energy that an individual values and could potentially lose (Halbesleben et al., 2014). Individuals strive to protect existing resources and acquire new ones because resource loss can lead to negative emotions, stress, and burnout, all of which undermine performance and well-being. Accordingly, individuals benefit from engaging in activities that replenish their strength and vitality—such as seeking social support, preserving autonomy, cultivating positive emotions, and exercising regularly.

Self-care practices are considered one way of protecting and building personal resources (Lee & Miller, 2013). Self-care refers to any deliberate activity that an individual undertakes to improve their physical, mental, or emotional well-being. Examples include exercise, meditation, sleep hygiene, healthy eating, and hobbies. By engaging in these practices, individuals can replenish personal resources, reduce stress, and sustain their well-being over time.

The RBV of the firm is a management theory that emphasizes the importance of a firm's internal resources and capabilities in determining its competitive advantage and long-term success. A firm's resources may be tangible or intangible and can include physical assets, intellectual property, human resources, and organizational culture, among others. The RBV argues that competitive advantage is determined by a firm's unique set of resources and capabilities that are difficult for competitors to imitate or replicate, thereby enabling sustained profitability over time.

The RBV also stresses that resources and capabilities are interdependent and should be managed holistically. A firm's resources must be aligned with its strategic goals, and the firm should continuously invest in developing those resources to maintain its advantage. According to Barney (1991), firms can achieve sustainable competitive advantage by possessing and leveraging unique and valuable resources that are difficult to imitate or substitute (p. 100). Amit and Schoemaker (1993) extend this framework, arguing that a firm's resources generate "organizational rent" when used to create value for stakeholders (p. 34). Wernerfelt (1984) similarly contends that a firm's resources constitute a "bundle" unique to the firm and resistant to competitive replication (p. 172).

Applied to the present study, the resource-based view provides a lens for analyzing self-care as a strategic asset. The self-care practices of TMT members may be viewed as a valuable and difficult-to-imitate resource that enhances the firm's capacity to manage stress and improve decision-making, ultimately contributing to better organizational performance.

Challenges Faced by TMTs: Stress and Eustress

The demands and pressures facing top management teams have increased significantly in recent years. Organizations are downsizing and restructuring, requiring TMTs to accomplish more with fewer resources and less support. This often results in elevated stress levels and a sense of overwhelm, making it challenging for TMT members to manage their workload effectively.

Effective stress and time management are not new challenges for TMTs. For many years, these leaders have been required to navigate complex and rapidly changing business environments and have developed coping strategies accordingly. However, with the intensification of demands in recent years, stress management has become even more critical. Research indicates that most American workers report their most recent work year as the most stressful they have experienced (DeFrank & Ivancevich, 1998), underscoring the widespread nature of workplace stress and the need for effective organizational support.

The concept of eustress, introduced by Selye (1974), offers an important nuance to the stress discussion. Eustress—defined as "positive stress"—is associated with feelings of excitement, fulfillment, meaning, satisfaction, and well-being. In contrast to distress, which produces anxiety and negative emotions, eustress can motivate individuals to take action and achieve their goals. TMT members have acknowledged, for example, that deadlines can create a productive sense of urgency, and that meeting those deadlines generates feelings of accomplishment that contribute to overall well-being.

Research has also suggested that stress can produce positive physiological effects under certain conditions. For instance, some studies have found associations between certain stress responses and reduced disease risk, suggesting that the consequences of stress depend heavily on how it is experienced and managed (Weaver, 2006).

Eustress is relevant to self-care in at least two ways. First, recognizing stress as a natural and potentially beneficial part of work may motivate individuals to adopt self-care practices that channel stress into productive outcomes such as improved focus or enhanced creativity. Second, engaging in self-care can help individuals transform distress into eustress. When individuals take proactive steps to maintain their physical and emotional health, they build resilience and become better equipped to experience stressors as growth opportunities rather than threats.

Stress responses are also highly individualized. Factors such as personality, coping skills, life experiences, and genetics all shape how a given person experiences and manages stress. One individual may find public speaking exhilarating while another finds it debilitating; one person may thrive under deadline pressure while another is overwhelmed by it. It is therefore important for individuals—including TMT members—to identify their own personal stress triggers and develop personalized strategies for managing them.