Managerial change and strategic change: The temporal sequence

Marta Domínguez-CC and Carmen Barroso-Castro

Journal of Management & Organization, 2017, vol. 23, issue 1, 46-73

Abstract: The relationship between managerial change and strategic change is a complex issue that challenges our understanding of how firms react to their business environment. In this study, we analyse the influence of the management team and more specifically their knowledge and capabilities in the process of strategic change. To do so, we delve deeper into the relationship between managerial change and strategic change by identifying the sequence of these changes. Using qualitative methodology, we analyse 10 companies listed on the Spanish Stock Exchange over an extensive period to formulate our propositions. Our analysis shows that managerial change precedes strategic change. Top management team reorganization, even without Chief Executive Officer succession, was a sufficient condition for strategic change to take place. Moreover, we identified key modifications that took place whenever strategic change occurred. Our results provide meaningful insights into the processes of strategic change within firms that broaden our theoretical knowledge in this area.

Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jomorg:v:23:y:2017:i:01:p:46-73_00

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