Managerial Succession in Complex Organizations

Guest, Robert H.

doi:10.1086/223265

Cited by 126 publications

(60 citation statements)

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“…As far back as the early 1960s, organizational researchers have been interested in understanding the impact of leader transitions on team performance in the sports industry (e.g., Cannella and Rowe 1995;Fabianic 1994;Giambatista 2004;Grusky 1960;Guest 1962). Initial work in this area found that in-season coaching changes resulted in short-run team performance improvements following the leader transition (Guest 1962).…”

Section: Theory and Hypothesis Development Leader Transitionsmentioning

confidence: 99%

“…Initial work in this area found that in-season coaching changes resulted in short-run team performance improvements following the leader transition (Guest 1962). An underlying reason for these post-change improvements is that the new leader is not tied to, or committed to, decisions made by the prior leader and therefore is less likely to follow the status quo.…”

Section: Theory and Hypothesis Development Leader Transitionsmentioning

confidence: 99%

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Ch-Ch-Ch-changes: How Action Phase Functional Leadership, Team Human Capital, and Interim vs. Permanent Leader Status Impact Post-transition Team Performance

et al. 2017

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Section: Theory and Hypothesis Development Leader Transitionsmentioning

confidence: 99%

Section: Theory and Hypothesis Development Leader Transitionsmentioning

confidence: 99%

Ch-Ch-Ch-changes: How Action Phase Functional Leadership, Team Human Capital, and Interim vs. Permanent Leader Status Impact Post-transition Team Performance

et al. 2017

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“…New executives are inclined to change their firms' domains because new talent brings with it new ideas, competencies, and political connections (Pfeffer andSalancik 1978, Boeker 1997). Such domain changes sometimes yield improvements in performance (Guest 1962, Singh et al 1986, Virany et al 1992.…”

Section: Model Specification and Estimationmentioning

confidence: 99%

Organizational Environments in Flux: The Impact of Regulatory Punctuations on Organizational Domains, CEO Succession, and Performance

Haveman

Russo

Meyer

2001

Organization Science

183

126

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A central debate in organizational theory concerns how organizations evolve. There are two diametrically opposing viewpoints. Adaptation theories predict that change occurs as fluid organizations adjust to meet shifting environmental demands, while selection theories predict that change occurs through the differential selection and replacement of inert organizations as environmental demands vary over time. Our paper bridges these polar opposites by using a punctuated equilibrium framework to examine organizations' responses to discontinuous industrylevel change. This framework recognizes that the histories of many industries are occasionally punctuated by dramatic exogenous shocks, such as radical technological innovation, social and political turmoil, major changes in government regulation, and economic crashes. Our central thesis is that such environmental punctuations dramatically reduce pressures and rewards for organizational inertia and thereby alter both organizations' propensities for change and their survival chances following change.We focus on one form of punctuation, major regulatory change, and study firms in two industries: general hospitals and savings and loan associations. For organizations in both industries, we examine three important outcomes: shifts in organizational domain, CEO succession, and changes in financial performance. Our analyses show that punctuational regulatory change prompts shifts in organizational domains and executive leadership. Additionally, post-punctuation domain change and post-punctuation CEO succession both affect subsequent performance. We discuss our results in light of current thinking about the content and process effects of core organizational change, which has been developed in the context of stable environments. Finally, we argue for the development of more temporally sensitive theories of organizational action. (Organizational Evolution; Punctuated Equilibrium; Deregulation; Organizational Change; Organizational Inertia; Organizational Performance; CEO Succession) Change in the core attributes of organizations is difficult and fraught with peril. Organizational ecologists have proposed that when organizations change, resources are diverted from operating to reorganizing, which reduces efficiency and survival chances (Hannan andFreeman 1984, 1989;Amburgey et al. 1993; Barnett and Carroll 1995). These process effects of core change-the costs associated with redirecting resources from operations to reorganization, learning new routines, and building new relations with exchange partners-are expected to be negative. In contrast, the content effects of core change-the impact of adjusting to fit environmental demands-may be positive or negative, depending on the luck and skill of organizational decision makers and implementers. Considering process and content effects together, core organizational change is likely to impair performance and may even lead to failure.Despite the inherent riskiness of core organizational change, it is sometimes necessary and...

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“…The managerial turnover provides an opportunity to correct previous managerial non enhancing decisions. According to that, Denis and Denis (1995), Guest (1962) and Tushman and Rosenkopf (1996) found evidences of a positive effect on the firm's performance derived from managerial turnover.…”

Section: Firm's Preturnover Performancementioning

confidence: 89%

“…The insiders' responsibility in past managerial decisions in the firm (Wiersema, 1992) and the similarity in problem identification and problem solving in a cohesive group of insiders (Pfeffer, 1985) make inside successors less likely to induce an intense reorientation in the firm's strategies. On the contrary, outside successors are seen as portents of major changes in the company (Guest, 1962;Helmich and Brown, 1972). According to that, different authors have found evidences of more intense organisational changes when the successor is an outsider than in the case when is an insider (Boeker, 1992;Helmich, 1974;Helmich and Brown, 1972;Kesner and Dalton, 1994;Wiersema, 1992).…”

Section: The Relevance Of Successor's Originmentioning

confidence: 99%

The Wealth Effects Of Managerial Turnover: Implications For The Spanish Corporate Governance System

Méndez

2011

IBER

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Managerial Succession in Complex Organizations

Cited by 126 publications

References 0 publications

Ch-Ch-Ch-changes: How Action Phase Functional Leadership, Team Human Capital, and Interim vs. Permanent Leader Status Impact Post-transition Team Performance

Ch-Ch-Ch-changes: How Action Phase Functional Leadership, Team Human Capital, and Interim vs. Permanent Leader Status Impact Post-transition Team Performance

Organizational Environments in Flux: The Impact of Regulatory Punctuations on Organizational Domains, CEO Succession, and Performance

The Wealth Effects Of Managerial Turnover: Implications For The Spanish Corporate Governance System

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