Disentangling the effects of CEO turnover and succession on organizational capabilities: A social network perspective

Disentangling the effects of CEO turnover and succession on organizational capabilities: A social network perspective

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Article ID: iaor20071132
Country: United States
Volume: 17
Issue: 5
Start Page Number: 563
End Page Number: 576
Publication Date: Sep 2006
Journal: Organization Science
Authors: , ,
Keywords: management
Abstract:

Prior reviews of the CEO turnover and succession literature suggest that empirical findings on organizational implications continue to be equivocal. In this paper, we develop a conceptual framework for examining the impact of CEO turnover and succession on organizational capabilities. Using the social network perspective as a theoretical lens, we identify conditions in which CEO turnover is expected to influence organizational exploration and exploitation capabilities. We also identify contingencies under which CEO succession will moderate the impact of CEO turnover on organizational capabilities. Our framework provides a useful lens through which to view the consequences of CEO turnover and succession and sheds some light on the equivocal findings to date.

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