Power dynamics within corporate upper echelons and their impacts on CEO succession and firm performance : a power circulation model /
Following a political perspective of organizations, this dissertation explores the power dynamics within corporate upper echelons over a CEO's tenure and their impacts on CEO succession and firm performance. It develops a power circulation model of CEO succession. The model proposes that a CEO...
| Main Author: | |
|---|---|
| Format: | Thesis Book |
| Language: | English |
| Published: |
[Place of publication not identified] :
[publisher not identified] ;
1999.
|
| Subjects: | |
| Online Access: | http://proxy.library.tamu.edu/login?url=http://proquest.umi.com/pqdweb?did=730829921&sid=1&Fmt=2&clientId=2945&RQT=309&VName=PQD |
| Summary: | Following a political perspective of organizations, this dissertation explores the power dynamics within corporate upper echelons over a CEO's tenure and their impacts on CEO succession and firm performance. It develops a power circulation model of CEO succession. The model proposes that a CEO faces two types of power contestation over his/her tenure and that there are three types of CEO successions. In the early years of tenure, the CEO is at risk of power contestation initiated by other senior executives, which leads to the ascension of a contending executive into power. If the CEO survives, he/she will be only at risk of power contestation initiated by outside directors, which leads to outsider succession. If there is no power contestation, the CEO will eventually retire and a follower will be selected as the successor. Empirical results support the major propositions of the power circulation model. Short CEO tenure was found to have a strong positive association with contender succession. In contrast, long CEO tenure was found to have a strong positive association with outsider succession. In addition, non-CEO executive ownership was found to have a positive association with contender succession, while outside director ownership was found to have a positive association with outsider succession. The proportion of inside (outside) directors was bound to have a negative (positive) association with outsider succession. CEO ownership was found to have a negative association with both contender succession and outsider succession. Firm performance was found to have a negative association with outsider succession, but no association with contender succession. Further, CEO succession was found to have a negative impact on a firm's financial performance, as measured by a three-year average return on assets. Post-succession executive turnover was also found to affect firm performance and its impact on firm performance was moderated by successor type. Finally, departing CEO tenure was found to have an inverted U-shape relationship with post-succession firm performance. |
|---|---|
| Item Description: | Vita. "Major Subject: Management". |
| Physical Description: | xiv, 200 leaves : illustrations ; 28 cm. Issued also on microfiche from University Microfilm Inc. |
| Bibliography: | Includes bibliographical references (leaves 169-181). |