CEO Experience and Diversification Strategy Fit
Richard Reed and
Journal of Management Studies, 1989, vol. 26, issue 3, 251-270
Recent years have seen major progress on research into the concept of fit. Also emerging in the literature is an apparent interest in the importance of executive know‐how and experience. This article combines the two areas by considering the impact of Chief Executive Officer (CEO) experience upon strategy adoption and corporate performance in the post‐implementation strategy phase. Using a sample of 52 US companies from the top 1000, we have examined the relationship between CEO experience and the separate strategies of internal and acquisitive diversification. The results suggest that CEO experience is not a major factor in strategy selection but where a fit exists between the selected strategy and observed experience, post‐implementation performance is affected.
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jomstd:v:26:y:1989:i:3:p:251-270
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