Changing Regimes: New CEO ideology and early departure
Type
conference paper
Date Issued
2019-03
Author(s)
Abstract (De)
We examine the effects of CEO succession coupled with change in political ideology—i.e.,
when a conservative CEO is replaced by a liberal, or vice-versa. Taking an organizational
disruption-view of succession, we argue that ideological differences between the new CEO and
the predecessor amplify succession-related disruption, and thus increase the likelihood of new
CEO early departure. We also argue that the disruption and thus likelihood of early CEO
departure is more pronounced when the predecessor CEO: (a) stays as board-chair after
succession, and (b) has strongly aligned the organization with his or her own ideology. Survival
analysis of 506 successions in S&P 500 firms support our predictions. Overall, our study
contributes to the upper-echelons literature by revealing how ‘changing-political-regimes’ in
strategic leadership impact new CEO early-survival.
when a conservative CEO is replaced by a liberal, or vice-versa. Taking an organizational
disruption-view of succession, we argue that ideological differences between the new CEO and
the predecessor amplify succession-related disruption, and thus increase the likelihood of new
CEO early departure. We also argue that the disruption and thus likelihood of early CEO
departure is more pronounced when the predecessor CEO: (a) stays as board-chair after
succession, and (b) has strongly aligned the organization with his or her own ideology. Survival
analysis of 506 successions in S&P 500 firms support our predictions. Overall, our study
contributes to the upper-echelons literature by revealing how ‘changing-political-regimes’ in
strategic leadership impact new CEO early-survival.
Language
English
HSG Classification
contribution to scientific community
Publisher
Strategic Management Society Special Conference
Event Title
Strategic Management Society Special Conference Strategic Leadership
Event Location
Las Vegas
Subject(s)
Division(s)
Eprints ID
258637
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Name
Manuscript_full3.pdf
Size
292.4 KB
Format
Adobe PDF
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