Disentangling the Effects of CEO Turnover and Succession on Organizational Capabilities: A Social Network Perspective

Authors:
Qing Cao;Likoebe M. Maruping;Riki Takeuchi
Affiliations:
Department of Management, School of Business, University of Connecticut, Storrs, Connecticut 06269;Department of Information Systems, Sam M. Walton College of Business, University of Arkansas, Fayetteville, Arkansas 72701;Department of Management of Organizations, School of Business and Management, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong (Special Administrative Region of ...
Venue:
Organization Science
Year:
2006

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Abstract

Prior reviews of the CEO turnover and succession literature suggest that empirical findings on organizational implications continue to be equivocal. In this paper, we develop a conceptual framework for examining the impact of CEO turnover and succession on organizational capabilities. Using the social network perspective as a theoretical lens, we identify conditions in which CEO turnover is expected to influence organizational exploration and exploitation capabilities. We also identify contingencies under which CEO succession will moderate the impact of CEO turnover on organizational capabilities. Our framework provides a useful lens through which to view the consequences of CEO turnover and succession and sheds some light on the equivocal findings to date.