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.
Language
English
HSG Classification
contribution to scientific community
Publisher
Strategic Management Society Special Conference
Event Title
Strategic Management Society Special Conference Strategic Leadership