Adaptive or Disruptive?A Cross-level Research on the Contingencies of the Effect of CEO Outside Succession on Firm Performance

Abstract

Abstract: The paper integrates the “organizational adaptive view” with “organizational disruptive view” on basis of the context characteristic of Chinese culture to explore the boundary conditions that affect the relationship between outside CEO and post-succession firm performance. By analyzing the dynamic situation confronting outside CEOs from three dimensions: person, team and organization, the paper puts forward the boundary conditions that affect the relationship between outside CEO succession and post-succession firm performance, followed by an empirical test with Chinese listed companies from 2008 to 2015. The results indicate that the similarity between CEO and TMT member negatively moderates the relationship between outside CEO succession and post-succession firm performance; the munificence of CEO functional background and firm performance upon succession positively moderate the relationship between outside CEO succession and post-succession firm performance.

Key words: CEO outside succession, firm performance, similarity, functional background

Liu Xin, Lv Rongjie, Xue Youzhi. Adaptive or Disruptive?A Cross-level Research on the Contingencies of the Effect of CEO Outside Succession on Firm Performance[J]. Management Review, 2022, 34(3): 229-242.

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