New CEO origin and Firm Performance: A Multilevel Investigation
Journal
Academy of Management Best Paper Proceedings
ISSN
0896-7911
Type
book
Date Issued
2014-08-05
Author(s)
Abstract
In this study we develop a multilevel research framework, postulating that the performance implications of outside CEO succession depend on the individual level characteristics of the new CEO, and the organizational and environmental level contingencies facing the company. First, drawing on relational demography and information processing theories, the study focuses on two types of individual level CEO characteristics: (a) relational socio-demographic attributes (i.e., CEO-TMT socio-demographic similarity) and (b) informational attributes (i.e., CEO international experience diversity). We argue that these two characteristics act as optimizing factors that compensate for the outsider CEO's lack of organizational familiarity and post-succession integration costs and help the firm to reap performance benefits from outside succession. Second, drawing on contingency theory, the study examines the moderating impact of pre-succession firm performance and industry munificence. In contrast with traditional wisdom, we argue that the benefits of outside succession materialize in well-performing firms operating in munificent industry environments.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Academy of Management
Number
Academy of Mananagement Proceedings 2014
Start page
1508
End page
1513
Pages
6
Subject(s)
Eprints ID
234032