Disentangling the Effects of CEO Turnover and Succession on Organizational Capabilities: A Social Network Perspective

Published Online:https://doi.org/10.1287/orsc.1060.0201

References

  • Adler P. S. Market, hierarchy, and trust: The knowledge economy and the future of capitalism. Organ. Sci. (2001) 12:215–234LinkGoogle Scholar
  • Adler P. S., Kwon S. W. Social capital: Prospects for a new concept. Acad. Management Rev. (2002) 27:17–40CrossrefGoogle Scholar
  • Ahuja G. Collaboration networks, structural holes, and innovation: A longitudinal study. Admin. Sci. Quart. (2000) 45:425–455CrossrefGoogle Scholar
  • Allen M. P., Panian S. K., Lotz R. E. Managerial succession and organizational performance: A recalcitrant problem revisited. Admin. Sci. Quart. (1979) 24:167–180CrossrefGoogle Scholar
  • Athanassiou N., Nigh D. The impact of U.S. company internationalization on top management team advice networks: A tacit knowledge perspective. Strategic Management J. (1999) 20:83–92CrossrefGoogle Scholar
  • Beatty R. P., Zajac E. J. CEO change and firm performance in large corporations: Succession effects and manager effects. Strategic Management J. (1987) 8:305–317CrossrefGoogle Scholar
  • Boeker W. Executive migration and strategic change: The effect of top manager movement on product-market entry. Admin. Sci. Quart. (1997) 42:213–236CrossrefGoogle Scholar
  • Brady G., Helmich D.Executive Succession (1984) (Prentice-Hall, Englewood Cliffs, NJ) Google Scholar
  • Brass D. J., Burkhardt M. E. Potential power and power use: An investigation of structure and behavior. Acad. Management J. (1993) 36:441–472CrossrefGoogle Scholar
  • Brown M. C. Administrative succession and organizational performance: The succession effect. Admin. Sci. Quart. (1982) 27:1–16CrossrefGoogle Scholar
  • Burt R.Structural Holes: The Social Structure of Competition (1992) (Harvard University Press, Cambridge, MA) CrossrefGoogle Scholar
  • Cannella A. A., Shen W. So close and yet so far: Promotion versus exit for CEO heirs apparent. Acad. Management J. (2001) 44:252–270CrossrefGoogle Scholar
  • Coleman J. S. Social capital in the creation of human capital. Amer. J. Sociol. (1988) 94:95–120CrossrefGoogle Scholar
  • Collins C. J., Clark K. D. Strategic human resource practices, top management team social networks, and firm performance: The role of human resource practices in creating organizational competitive advantage. Acad. Management J. (2003) 46:740–751CrossrefGoogle Scholar
  • Coughlan A. T., Schmidt R. M. Executive compensation, management turnover, and firm performance. J. Accounting Econom. (1985) 7:43–66CrossrefGoogle Scholar
  • Darr E., Argote L., Epple D. The acquisition, transfer and depreciation of knowledge in service organizations. Management Sci. (1995) 41:1750–1762LinkGoogle Scholar
  • D’Aveni R. A.Hypercompetition: Managing the Dynamics of Strategic Maneuvering (1994) (Free Press, New York) Google Scholar
  • Denis D. J., Denis D. K. Performance changes following top management dismissals. J. Finance (1995) 50:1029–1057CrossrefGoogle Scholar
  • Dess G. G., Shaw J. D. Voluntary turnover, social capital and organizational performance. Acad. Management Rev. (2001) 26:446–456CrossrefGoogle Scholar
  • Edwards J. R., Parry M. E. On the use of polynomial regression equations as an alternative to difference scores in organizational research. Acad. Management J. (1993) 36:1577–1613CrossrefGoogle Scholar
  • Eisenhardt K. M., Schoonhoven C. B. Resource-based view of strategic alliance formation: Strategic and social effects in entrepreneurial firms. Organ. Sci. (1996) 7:136–150LinkGoogle Scholar
  • Fama E. F. Agency problems and the theory of the firm. J. Political Econom. (1980) 88:288–307CrossrefGoogle Scholar
  • Finkelstein S., Hambrick D. C.Strategic Leadership: Top Executives and Their Effects on Organizations (1996) (West, New York) Google Scholar
  • Fleming L. Recombinant uncertainty in technological search. Management Sci. (2001) 47:117–132LinkGoogle Scholar
  • Friedman S. D., Singh H. CEO succession and stockholder reaction: The influence of organizational context and event content. Acad. Management J. (1989) 32:718–744CrossrefGoogle Scholar
  • Furtado E. P. H., Karan V. Causes, consequences, and shareholder wealth effects of management turnover: A review of the empirical evidence. Financial Management (1990) 19(Summer):60–75Google Scholar
  • Galbraith J.Designing Complex Organizations (1973) (Addison-Wesley, Reading, MA) Google Scholar
  • Gamson W., Scotch N. Scapegoating in baseball. Amer. J. Sociol. (1964) 70:69–72CrossrefGoogle Scholar
  • Geletkanycz M. A., Hambrick D. C. The external ties of top executives: Implications for strategic choice and performance. Admin. Sci. Quart. (1997) 42:654–681CrossrefGoogle Scholar
  • Geletkanycz M. A., Boyd B. K., Finkelstein S. The strategic value of CEO external directorate networks: Implications for CEO compensation. Strategic Management J. (2001) 22:889–898CrossrefGoogle Scholar
  • Gnyawali D. R., Madhavan R. Cooperative networks and competitive dynamics: A structural embeddedness perspective. Acad. Management Rev. (2001) 26:431–445CrossrefGoogle Scholar
  • Gouldner A.Patterns in Industrial Bureaucracy (1954) (Free Press, Glencoe, IL) Google Scholar
  • Granovetter M. S. The strength of weak ties. Amer. J. Sociol. (1973) 78:1360–1380CrossrefGoogle Scholar
  • Granovetter M. S. Economic action and social structure: The problem of embeddedness. Amer. J. Sociol. (1985) 91:481–510CrossrefGoogle Scholar
  • Granovetter M. S., Nohira N., Eccles R. Problems of explanation in economic sociology. Networks and Organizations: Structure, Form and Action (1992) (Harvard Business School Press, Boston, MA) 25–26Google Scholar
  • Grant R. M. Toward a knowledge-based theory of the firm. Strategic Management J. (1996) 17:109–122CrossrefGoogle Scholar
  • Grusky O. Administrative succession in formal organizations. Soc. Forces (1960) 39:105–115CrossrefGoogle Scholar
  • Grusky O. Managerial succession and organizational effectiveness. Amer. J. Sociol. (1963) 69:21–31CrossrefGoogle Scholar
  • Guest R. H. Managerial succession in complex organizations. Amer. J. Sociol. (1962) 68:47–54CrossrefGoogle Scholar
  • Habib M., Victor B. Strategy, structure, and performance of U.S. manufacturing and service MNCs: A comparative analysis. Strategic Management J. (1991) 12:589–606CrossrefGoogle Scholar
  • Hambrick D. C., Mason P. Upper echelons: The organization as a reflection of its top managers. Acad. Management Rev. (1984) 9:193–206CrossrefGoogle Scholar
  • Hansen M. T. The search-transfer problem: The role of weak ties in sharing knowledge across organization subunits. Admin. Sci. Quart. (1999) 44:82–111CrossrefGoogle Scholar
  • Helmich D. I., Brown W. B. Successor type and organizational change in corporate enterprise. Admin. Sci. Quart. (1972) 17:371–381CrossrefGoogle Scholar
  • Hough J. R., White M. Scanning actions and environmental dynamism: Gathering information for strategic decision making. Management Decision (2004) 42:781–793CrossrefGoogle Scholar
  • Huson M. R., Malatesta P. H., Parrino R. Managerial succession and firm performance. J. Financial Econom. (2004) 74:237–275CrossrefGoogle Scholar
  • Jacobsen R. The “Austrian” school of strategy. Acad. Management Rev. (1992) 17:782–807Google Scholar
  • Katila R. Citius, altius, fortius: Search for radical innovations. (2002) . Paper presented at Academy of Management Annual Conference, Denver, COGoogle Scholar
  • Katila R., Ahuja G. Something old, something new: A longitudinal study of search behavior and new product introduction. Acad. Management J. (2002) 45:1183–1194CrossrefGoogle Scholar
  • Keegan W. J. Multinational scanning: A study of the information sources utilized by headquarters executives in multinational companies. Admin. Sci. Quart. (1984) 29:411–421Google Scholar
  • Kesner I. F., Dalton D. R. Top management turnover and CEO succession: An investigation of the effects of turnover on performance. J. Management Stud. (1994) 31:701–713CrossrefGoogle Scholar
  • Kesner I. F., Sebora T. C. Executive succession: Past, present, and future. J. Management (1994) 20:327–372Google Scholar
  • Khurana R. Finding the right CEO: Why boards often make poor choices. Sloan Management Rev. (2001) 43(1):91–95Google Scholar
  • Khurana R.Curse of the Superstar CEO (2002) (Harvard Business School Press, Boston, MA) Google Scholar
  • Koestler A.The Act of Creation (1964) (Dell, New York) Google Scholar
  • Kogut B. The network as knowledge: Generative rules and the emergence of structure. Strategic Management J. (2000) 21:405–425CrossrefGoogle Scholar
  • Kogut B., Zander U. Knowledge of the firm: Combinative capabilities and the replication of technology. Organ. Sci. (1992) 3:383–397LinkGoogle Scholar
  • Kraatz M. S., Moore J. H. Executive migration and institutional change. Acad. Management J. (2002) 45:120–143CrossrefGoogle Scholar
  • Lant T. K., Milliken F. J., Batra B. The role of managerial learning and interpretation in strategic persistence and reorientation: An empirical exploration. Strategic Management J. (1992) 13:585–608CrossrefGoogle Scholar
  • Leana C. R., Van Buren H. J. Organizational social capital and employment practices. Acad. Management Rev. (1999) 24:538–555CrossrefGoogle Scholar
  • Levin D. Z., Cross R. The strength of weak ties you can trust: The mediating role of trust in effective knowledge transfer. Management Sci. (2004) 50:1477–1490LinkGoogle Scholar
  • Levinthal D., March J. The myopia of learning. Strategic Management J. (1993) 14:95–112CrossrefGoogle Scholar
  • Lieberson S., O’Conner J. F. Leadership and organizational performance: A study of large corporations. Amer. Sociol. Rev. (1972) 37:117–130CrossrefGoogle Scholar
  • Lin N.Social Capital: A Theory of Social Structure and Action (2001) (Cambridge University Press, Cambridge, UK) CrossrefGoogle Scholar
  • Lorange P.Corporate Planning: An Executive Viewpoint (1980) (Prentice-Hall, Englewood Cliffs, NJ) Google Scholar
  • Lubatkin M., Chung K., Rogers R., Owers J. Stockholder reactions to CEO change in large organizations. Acad. Management J. (1989) 32:47–68CrossrefGoogle Scholar
  • March J. Exploration and exploitation in organizational learning. Organ. Sci. (1991) 2:71–87LinkGoogle Scholar
  • McGrath R. G. Exploratory learning, innovative capacity, and managerial oversight. Acad. Management J. (2001) 44:118–131CrossrefGoogle Scholar
  • Mintzberg H.The Nature of Managerial Work (1973) (Harper & Row, New York) Google Scholar
  • Nahapiet J., Ghoshal S. Social capital, intellectual capital, and the organizational advantage. Acad. Management Rev. (1998) 23:242–266CrossrefGoogle Scholar
  • Nystrom P. C., Starbuck W. H. To avoid organizational crises—Unlearn. Organ. Dynam. (1984) 12:53–65CrossrefGoogle Scholar
  • Parrino R. CEO turnover and outside succession: A cross-sectional analysis. J. Financial Econom. (1997) 46:165–197CrossrefGoogle Scholar
  • Pfeffer P. The ambiguity of leadership. Acad. Management Rev. (1977) 2:104–112CrossrefGoogle Scholar
  • Rodan S., Galunic C. More than network structure: How knowledge heterogeneity influences managerial performance and innovativeness. Strategic Management J. (2004) 25:541–562CrossrefGoogle Scholar
  • Rosenkopf L., Nerkar A. Beyond local search: Boundary-spanning, exploration, and impact in the optical disk industry. Strategic Management J. (2001) 22:287–306CrossrefGoogle Scholar
  • Salk J. E., Brannen M. Y. National culture, networks, and individual influence in a multinational management team. Acad. Management J. (2000) 43:191–202CrossrefGoogle Scholar
  • Schumpeter J. A.The Theory of Economic Development (1934) (Harvard University Press, Cambridge, MA) Google Scholar
  • Shaw J. D., Delery J. E., Jenkins N., Gupta J. E. An organizational-level analysis of voluntary turnover and involuntary turnover. Acad. Management J. (1998) 41:511–525CrossrefGoogle Scholar
  • Shaw J. D., Duffy M. K., Johnson J. L., Lockhart D. E. Turnover, social-capital losses, and performance. Acad. Management J. (2005) 48:594–606CrossrefGoogle Scholar
  • Shen W., Cannella A. A. Revisiting the performance consequences of CEO succession: The impacts of successor type, postsuccession senior executive turnover, and departing CEO tenure. Acad. Management J. (2002a) 45:717–733CrossrefGoogle Scholar
  • Shen W., Cannella A. A. Power dynamics within top management and their impacts on CEO dismissal followed by inside succession. Acad. Management J. (2002b) 45:1195–1206CrossrefGoogle Scholar
  • Shen W., Cannella A. A. Will succession planning increase shareholder wealth? Evidence from investor reactions to relay CEO successions. Strategic Management J. (2003) 24:191–198CrossrefGoogle Scholar
  • Smith K. G., Di Gregorio D., Hitt M., Ireland D., Camp D., Sexton D. L. Bisociation, discovery and the role of entrepreneurial action. Strategic Entrepreneurship: Creating a New Mindset (2002) (Blackwell, Oxford, UK) 129–146Google Scholar
  • Smith K. G., Collins C. J., Clark K. D. Existing knowledge, knowledge creation capability, and the rate of new product introduction in high technology firms. Acad. Management J. (2005) 48:346–357CrossrefGoogle Scholar
  • Strober M. H. Human capital theory: Implications for HR managers. Indust. Relations (1990) 29:214–239Google Scholar
  • Stumpf S. A., Dawley P. K. Predicting voluntary and involuntary turnover using absenteeism and performance indices. Acad. Management J. (1981) 24:148–163CrossrefGoogle Scholar
  • Tsai W. Knowledge transfer in intraorganizational networks: Effects of network position and absorptive capacity on business unit innovation and performance. Acad. Management J. (2001) 44:996–1004CrossrefGoogle Scholar
  • Tsai W., Ghoshal S. Social capital and value creation: The role of intrafirm networks. Acad. Management J. (1998) 41:464–478CrossrefGoogle Scholar
  • Vancil R.Passing the Baton (1987) (Harvard University Press, Boston, MA) Google Scholar
  • Virany B., Tushman M. L., Romanelli E. Executive succession and organization outcomes in turbulent environments: An organizational learning approach. Organ. Sci. (1992) 3:72–91LinkGoogle Scholar
  • Walsh J. P. Managerial and organizational cognition: Notes from a trip down memory lane. Organ. Sci. (1995) 6:280–321LinkGoogle Scholar
  • Wasserman S., Faust K.Social Network Analysis: Methods and Applications (1994) (Cambridge University Press, Cambridge, MA) CrossrefGoogle Scholar
  • Westphal J. D., Milton L. P. How experience and network ties affect the influence of demographic minorities on corporate boards. Admin. Sci. Quart. (2000) 45:366–398CrossrefGoogle Scholar
  • Wiersema M. F. Strategic consequences of executive succession within diversified firms. J. Management Stud. (1992) 29:73–94CrossrefGoogle Scholar
  • Wiersema M. F. Executive succession as an antecedent to corporate restructuring. Human Resource Management (1995) 34:185–202CrossrefGoogle Scholar
  • Wiersema M. F. Holes at the top: Why CEO firings backfire. Harvard Bus. Rev. (2002) 80(12):70–77Google Scholar
  • Wiersema M. F., Bantel K. A. Top management team turnover as an adaptation mechanism: The role of the environment. Strategic Management J. (1993) 14:485–504CrossrefGoogle Scholar
  • Winter S., Szulanski G. Replication as strategy. Organ. Sci. (2001) 12:730–743LinkGoogle Scholar
  • Zajac E. CEO selection, succession, and firm performance: A theoretical integration and empirical analysis. Strategic Management J. (1990) 11:217–230CrossrefGoogle Scholar
  • Zhang Y., Rajagopalan N. When the known devil is better than an unknown god: An empirical study of the antecedents and consequences of relay CEO successions. Acad. Management J. (2004) 47:483–500CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.