Georgakakis, D., Souitaris, V., Cannella Jr, A.A. et al. (2 more authors) (2024) Changing Ideological Regimes: CEO Succession with A Shift in Political Ideology and New CEO Early Departure. Journal of Management Studies. ISSN 0022-2380
Abstract
We examine the effects of CEO succession coupled with a change in political ideology – when a conservative CEO is replaced by a liberal CEO or vice versa. We argue that in such CEO transitions, the new CEOs must alter their predecessors’ ideological imprints to imbue strategic leadership with their own values, which increases their executive job demands in the critical early years of their tenure and raises the likelihood of their early departure. We also suggest that this relationship is moderated by two strategic leadership interface (SLI) factors that influence the executive job demands these new CEOs face: (a) the retention of the ideologically incongruent predecessor as board chair, and (b) the ideological fit between the new CEO and the incumbent executive team. We first test our framework using data from 2286 CEO successions in S&P 1500 firms. We then conduct an experimental study to ensure causality and confirm executive job demands as a mediating mechanism underlying the relationship. Overall, our study advances the disruption theory of succession by shedding light on the deeply held mechanisms that lead to early failure in CEO transitions.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2024 The Author(s). This is an open access article under the terms of the Creative Commons Attribution License (CC-BY 4.0), which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited. |
Keywords: | CEO early departure, CEO political ideology, CEO succession, predecessor imprint, strategic leadership interfaces |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > International Business Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 06 Nov 2024 09:48 |
Last Modified: | 06 Nov 2024 09:48 |
Published Version: | http://dx.doi.org/10.1111/joms.13142 |
Status: | Published online |
Publisher: | Wiley |
Identification Number: | 10.1111/JOMS.13142 |
Related URLs: | |
Sustainable Development Goals: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:219267 |