 The joint influence of CEO succession types and CEO-TMT faultline on firm’s strategic changeYue Zhang, Oluremi B. Ayoko and Qiaozhuan Liang Journal of Business Research, 2021, vol. 126, issue C, 137-152 Abstract: Scholars have long debated the merits of hiring contender and outsider CEOs for achieving strategic change. To further the debate, we propose that whether a contender or outsider CEO generates a greater degree of post-succession strategic change likely depends on his/her fit with the existing members of the top management team (TMT). Drawing on the person–group fit literature and the faultline-based approach, we introduce the concept of the CEO–TMT faultline to assess the CEO’s fit with the TMT. We test our research model using a sample of Chinese firms that experienced CEO succession events between 2006 and 2016. We find that the identity-based CEO–TMT faultline impedes contender and outsider successors’ generation of strategic change. Additionally, the knowledge-based CEO–TMT faultline helps contenders generate strategic change, while it hinders outsiders from doing so. Finally, the resource-based CEO–TMT faultline is beneficial for outsider successors to make strategic change. Keywords: CEO-TMT faultline; CEO succession; Strategic change; Person-group fit (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:126:y:2021:i:c:p:137-152 DOI: 10.1016/j.jbusres.2020.12.055 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.