What does the new boss think?

Ndofor, Hermann Achidi; Priem, Richard L.; Rathburn, Jude A.; Dhir, Ashwani K.

doi:10.1016/j.leaqua.2009.06.011

Cited by 32 publications

(3 citation statements)

References 50 publications

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“…Ozcan and Eisenhardt (2009) used six small game companies in the USA as examples to describe how companies at the end of the industry can change existing competition rules through cross-industry development, thereby achieving catch-up. Ndofor et al (2009) pointed out that, when firms are faced with profit pressure, they often adopt the cross-industry growth, including entering the upstream and downstream channels and obtaining the market and resources needed by firms. Li et al (2021) pointed out that cross-industry growth in the crisis situation has a buffer effect on CMS 18,3 protecting changes in enterprise value.…”

Section: Theory and Hypotheses Development 21 Theoretical Backgroundmentioning

confidence: 99%

How performance pressure influences firms’ cross-boundary growth: the moderating effect of managerial discretion

Lin

Yang

et al. 2023

CMS

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Purpose In today's complex and rapidly changing business environment, cross-boundary growth is increasingly critical to the survival or even success of organizations. The purpose of this study is to examine the forming mechanism of firm’s cross-boundary growth by integrating the two important antecedent factors of performance pressure and managerial discretion into a united framework and theoretically analyze the direct role of performance pressure on firm’s cross-boundary growth as well as reveal the moderating role of managerial discretion. Also, the authors select listed manufacturing companies in China as samples to empirically test the research hypotheses. Design/methodology/approach The authors design a multiple regression model to perform empirical analysis by using a panel of 4,002 year-observations in 1,334 listed manufacturing companies between 2013 and 2016. The sample data sources mainly come from the Wind Database, which is mainland China's leading financial database and software services provider. The hypotheses proposed are tested by adopting a panel data set of the listed manufacturing companies of China. Findings Empirical results show that performance pressure has a positive effect on the cross-industry growth and cross-domestic regional growth but a negative effect on the cross-international regional growth, and managerial discretion has a different moderating effect. Specifically, capital intensity strengthens the positive effect of performance pressure on cross-industry growth but weakens the negative effect of performance pressure on cross-international regional growth. State ownership enhances the positive effect of performance pressure on cross-domestic regional growth but decreases the negative effect of performance pressure on cross-international regional growth. CEO duality increases the negative impact of performance pressure on cross-international regional growth. Practical implications This study provides several implications for top executives, including how to dialectically consider the double-edged effect of performance pressure on cross-boundary growth of firms, create an appropriate environments of managerial discretion and design the types of cross-boundary growth strategies that top executives can follow in the volatility, uncertainty, complexity and ambiguity era. Originality/value Although the relevant literature highlights the importance of performance pressure, it has not been related to the cross-boundary growth of firms. This paper makes an incremental contribution to the literature on the forming mechanisms of firm’s cross-boundary growth by providing an important perspective of performance pressure to firm growth determinants and taking into account the moderating role of managerial discretion.

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Section: Theory and Hypotheses Development 21 Theoretical Backgroundmentioning

confidence: 99%

How performance pressure influences firms’ cross-boundary growth: the moderating effect of managerial discretion

Lin

Yang

et al. 2023

CMS

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“…The literature has positioned lead decision-makers in sport as analogous to CEOs in other industries. Ndofor et al (2009) examined the similarities between NFL head coaches and CEOs and argued both leaders possess responsibility for operational and strategic decisions. Both are also subject to intense scrutiny and can be fired for poor performance, which is not entirely within their control.…”

Section: Athletic Directors As Lead Executivesmentioning

confidence: 99%

Upper echelons in college sport: the impact of athletic directors on organizational performance and revenues

Skinner,

Salaga,

Juravich

2023

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PurposeUsing the lens of upper echelons theory, this study examines the degree to which National Collegiate Athletic Association athletic department performance outcomes are associated with the personal characteristics and experiences of the athletic director leading the organization.Design/methodology/approachThe authors match organizational performance data with athletic director and institutional characteristics to form a robust data set spanning 16 years from the 2003–04 to 2018–19 seasons. The sample contains 811 observations representing 136 unique athletic directors. Fixed effects panel regressions are used to analyze organizational performance and quantile regression is used to analyze organizational revenues.FindingsThe authors fail to uncover statistically significant evidence that athletic director personal characteristics, functional experience and technical experience are associated with organizational performance. Rather, the empirical modeling indicates organizational performance is primarily driven by differentiation in the ability to acquire human capital (i.e. playing talent). The results also indicate that on average, women are more likely to lead lower revenue organizations, however, prior industry-specific technical experience offsets this relationship.Originality/valueIn opposition to upper echelons research in numerous settings, the modeling indicates the personal characteristics and experiences of the organization's lead executive are not an economically relevant determinant of organizational performance. This may indicate college athletics is a boundary condition in the applicability of upper echelons theory.

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“…However, the basic rationale behind the assumption that differences in the CSQ between the outgoing CEO and the successor explain strategic change occurring after CEO change is that the new CEO is not committed to prior courses of action and thus questions the current strategy (Miller 1993;Wiersema 1992Wiersema , 1995. In contrast, the incumbent or outgoing CEO is committed to prior courses of action and inhibits strategic adaptation to changing environmental conditions (Ndofor et al 2009;Hambrick et al 1993). This commitment of the incumbent CEO arises from the CEO's responsibility for prior decisions and the need to justify these decisions (Staw 1981).…”

Section: Ceo Succession and Csqmentioning

confidence: 99%

CEO succession and the CEO’s commitment to the status quo

Behr

Fehre

2018

Bus Res

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Chief executive officer (CEO) commitment to the status quo (CSQ) is expected to play an important role in any firm's strategic adaptation. CSQ is used often as an explanation for strategic change occurring after CEO succession: new CEOs are expected to reveal a lower CSQ than established CEOs. Although widely accepted in the literature, this relationship remains imputed but unobserved. We address this research gap and analyze whether new CEOs reveal lower CSQ than established CEOs. By analyzing the letters to the shareholders of German HDAX firms, we find empirical support for our hypothesis of a lower CSQ of newly appointed CEOs compared to established CEOs. However, our detailed analyses provide a differentiated picture. We find support for a lower CSQ of successors after a forced CEO turnover compared to successors after a voluntary turnover, which indicates an influence of the mandate for change on the CEO's CSQ. However, against the widespread assumption, we do not find support for a lower CSQ of outside successors compared to inside successors, which calls for deeper analyses of the insiderness of new CEOs. Further, our supplementary analyses propose a revised tenure effect: the widely assumed relationship of an increase in CSQ when CEO tenure increases might be driven mainly by the event of CEO succession and may not universally and continuously increase over time, pointing to a ''window of opportunity'' to initiate strategic change shortly after the succession event. By analyzing the relationship between CEO succession and CEO CSQ, our results contribute to the CSQ literature and provide fruitful impulses for the CEO succession literature.

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What does the new boss think?

Cited by 32 publications

References 50 publications

How performance pressure influences firms’ cross-boundary growth: the moderating effect of managerial discretion

How performance pressure influences firms’ cross-boundary growth: the moderating effect of managerial discretion

Upper echelons in college sport: the impact of athletic directors on organizational performance and revenues

CEO succession and the CEO’s commitment to the status quo

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