The business development role of Maltese listed entity CFOs

Abstract

PURPOSE: This study seeks (i) to ascertain the role of Maltese listed entity CFOs in business development including determining the interconnections that CFOs have with other senior managers in other sections of the relative entities, particularly in relation to business development; (ii) to establish and assess the relative significance which such CFOs normally allot to business development matters in comparison with that which they typically allot to their more traditional financial role, while also analysing the implications of such significance on the organisational status of the CFOs. DESIGN: To address the research objectives, a mainly qualitative mixed methodology was adopted, with a total of twenty-two semi-structured interviews being conducted with the CFOs of Maltese listed entities. FINDINGS: The results highlight the high importance of the Maltese CFO role in business development within their respective entities. Clearly, the CFO role has been evolving beyond that of a traditional financial manager, with their part in business development being clear evidence of such evolution. Furthermore, for such business development role to succeed, the necessity is also underscored for the cross-collaboration of CFOs with other executives. There are also indications that CFOs are dedicating more of their time towards their business development role, such time surpassing that devoted to their traditional role. With the increased emphasis on business development, CFOs are being empowered towards becoming more strategic and influential within their entities, this having positive implications on their organisational status. In particular, CFOs are increasingly becoming more essential members within the top management team of their entities. CONCLUSIONS: This study concludes that Maltese CFOs are assuming a crucial role in fostering the growth and development of Maltese listed entities. Beyond offering potential fulfilment for the CFOs themselves, such business development engagement is elevating them to more prominent positions and top management acknowledgment within their entities. Ultimately, the business development role is therefore rendering CFOs more valuable and attractive to their respective Maltese listed entities, expanding their capabilities and influence towards broader organisational endeavours. IMPLICATIONS: This study has attempted to raise more awareness of the indispensable role of Maltese CFOs in business development. Such a role is increasingly equipping CFOs with a myriad of other valuable skills and capabilities which go beyond their financial expertise. Consequently, it is essential that the accountancy profession realises the paramount importance of such business development role, both to CFOs themselves and to their entities, and also, adapting its educational courses to place more emphasis on such a role.