Date of Award

8-2025

Document Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Department

Business Administration

Committee Chair/Advisor

Amy Ingram

Committee Member

Jason Ridge

Committee Member

Kristin Scott

Committee Member

Craig Wallace

Abstract

Many successful business leaders have overcome difficult childhoods, yet little research has examined how early hardships might actually contribute to leadership effectiveness. This study investigated whether CEOs who experienced childhood adversity can transform these difficult experiences into strengths that improve their companies' performance.

The research surveyed 165 business owners across two groups: general business owners and automotive dealership owners. Participants answered questions about their childhood experiences, their ability to grow from trauma, and various psychological traits like grit, mental toughness, resilience, and growth mindset. Company performance data was also collected.

The findings challenge conventional wisdom that difficult childhoods necessarily harm leadership ability. Instead, the study found that childhood adversity can lead to better company performance when leaders experience what psychologists call "post-traumatic growth"—the positive changes that can emerge from processing difficult experiences. Leaders who developed strength, wisdom, and deeper relationships from their hardships were more likely to run successful companies.

The study also found that certain psychological traits help leaders transform adversity into growth. Traits like grit (perseverance toward long-term goals), mental toughness, resilience, and believing that abilities can be developed all helped leaders turn negative childhood experiences into positive outcomes. These effects were stronger for independent business owners compared to those operating within more structured corporate environments.

These results suggest a fundamental shift in how we think about leadership development. Rather than viewing difficult childhoods as barriers to success, organizations should recognize that many effective leaders have grown stronger through adversity. This has important implications for how companies select, develop, and support their leaders.

The research provides hope for individuals who experienced childhood difficulties and offers practical guidance for organizations. It suggests that leadership development programs should help executives process their past experiences constructively, focus on building psychological strengths, and create supportive environments where leaders can leverage their unique backgrounds for organizational benefit.

This work represents the first comprehensive study linking childhood adversity to business performance through growth mechanisms, offering a new perspective on what makes leaders effective.

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Leadership Commons

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