Non-CEO executive mobility: The impact of poor firm performance and TMT attention

Tine Buyl, Christophe Boone and James B. Wade

European Management Journal, 2015, vol. 33, issue 4, 257-267

Abstract: We present a comprehensive and integrative study of non-CEO executive mobility, proposing two complementary approaches: (1) mobility as a reactive process, driven by poor organizational performance (the dominant approach in prior literature) and (2) mobility as a proactive process, reflecting incumbent TMTs' patterns of (exploratory and exploitative) attention. Using a sample of 1168 observations proceeding from 197 US organizations (2000–2011), we empirically validate that non-CEO executives' exit and inflow is driven by poor organizational performance, and that CEO replacement mediates this effect (i.e., the so-called ‘sweep-out effect’). Furthermore, the probability of non-CEO executive inflow is higher when the incumbent TMT has a high level of exploratory attention and lower when there is a high level of exploitative attention. These ‘proactive’ effects occur over and above the ‘reactive’ processes of poor organizational performance.

Keywords: Non-CEO executive mobility; TMT exploratory attention; TMT exploitative attention; Organizational performance (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eurman:v:33:y:2015:i:4:p:257-267

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DOI: 10.1016/j.emj.2015.02.001

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