Contextual Influences on Executive Selection: Firm Characteristics and CEO Experience

Deepak K. Guthrie Datta James P.

Journal of Management Studies, 1997, vol. 34, issue 4, 537-560

Abstract: This study examines the relationship between antecedent organizational characteristics and the pre‐succession experience of individuals chosen as chief executive officer (CEO) – relationships that have received limited attention in past research. A sample of 214 CEO selection decisions was used to test hypothesized relationships between the firm characteristics of size, performance, growth, advertising intensity, risk and individual attributes pertaining to the experience of selected CEOs. Results indicate the following relationships: pre‐succession profitability, size and advertising intensity are associated with the chosen executives' organizational tenure levels; pre‐succession firm size and risk are associated with the age of selected CEOs; and, pre‐succession profitability and advertising intensity are associated with type of functional background experience. Findings provide new insights into the relative importance of pre‐succession experience associated with different organizational contexts in CEO selection decisions.

Date: 1997
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