Executive Succession in the Corporate Organization: A Current Integration

Helmich, Donald L.

doi:10.5465/amr.1977.4409050

Cited by 57 publications

(17 citation statements)

References 30 publications

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“…Firms with more than 50 employees also outperformed firms with 10-49 employees regarding the preparation of the successor (p-value 0.009), and tend to have a successor far more willing to take over than all other smaller size firms (p-value 0.003 vs. 0.000). These findings are in accordance with the other studies regarding succession planning and successor preparation ascertaining the positive relationship between size and succession planning (Leon Guerrero et al 1998) and the limited training and development of potential successors due to limited availability of resources in small firms (Helrnich 1977;Trow 1961). The successor seems to be more willing to take over in larger rather than smaller family firms, as the desire to take control of firm operations is most appropriately combined with fulfilled career, psychosocial, and life stage opportunities (Stavrou 1999;Handler 1990Handler , 1992.…”

Section: Discussionsupporting

confidence: 93%

“…All these realities make it difficult or undesirable for incumbents to initiate a formal succession planning and if they do initiate it, really engage in it. Other studies also affirmed the negative relationship between small firm size and elaborate succession planning (Leon Guerrero et al 1998), the lack of the necessary resources to train and develop potential successors (Helrnich 1977;Trow 1961) or resources to engage outside advisors who would assist in effective succession and continuity planning (Chaganti et al 1991). Likewise, the relatively low percentage of the incumbent's willingness to leave confirms the results of past studies which found the incumbent of a family business to be overall reluctant to pass over control (Davis 1982;Handler 1989;Kepner 1983;Christensen 1953;Firnstahl 1986;Barry 1975;Blotnick 1984).…”

Section: Descriptive Statistics and Frequency Distributionsmentioning

confidence: 94%

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Mapping the successful succession process in family firms: evidence from Greece

Pyromalis

Vozikis

2009

Int Entrep Manag J

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The succession process in family firms has by far been determined to be the most critical phase in the family business life-cycle (e.g. Morris et al. Journal of Business Venturing 18:513-531, 1997;Wang et al. 2000) and characterized as the period in which most family firm fatalities occur (Handler and Kram Family Business Review 1: 1988). This paper is an empirical study on Greek family firms and seeks to identify the critical success factors that have a major impact on the outcome of a generational transition in the leadership of the family firm. Based on an integrated conceptual framework proposed by Pyromalis et al. (2006), we test the impact of five factors, namely the incumbent's propensity to step aside, the successor's willingness to take over, the positive family relations and communication, succession planning, and the successor's appropriateness and preparation on both the satisfaction of the stakeholders with the succession process and the effectiveness of the succession process per se. The results provide a useful insight and confirm the importance of the aforementioned factors in the succession process by mapping a safe passage through the family business succession process, and by contributing not only to the overall family business literature but also generating strong arguments in favor of the family firm as an integral entrepreneurial element for a region's sustainable economic development.

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Section: Discussionsupporting

confidence: 93%

Section: Descriptive Statistics and Frequency Distributionsmentioning

confidence: 94%

Mapping the successful succession process in family firms: evidence from Greece

Pyromalis

Vozikis

2009

Int Entrep Manag J

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“…As referred to previously, the coding of successor type is binary with insiders being defined as those individuals coming from within the span of the predecessor and outsiders coming from outside their span (Helmich, 1974(Helmich, , 1975(Helmich, , 1976a. Top management turnover is represented by the proportion of the top management group turning over during the two-year period following CEO succession.…”

Section: Data Measurement and Anabsismentioning

confidence: 99%

“…an employee of the firm). Outside succession, however, occurs when the newly appointed CEO is not within the predecessor's executive span (Helmich, 1974(Helmich, , 1975(Helmich, , 1976a(Helmich, , 1976b.…”

Section: Introductionmentioning

confidence: 98%

Top Management Turnover and Ceo Succession: An Investigation of the Effects of Turnover on Performance

Kesner

Dalton

1994

J Management Studies

137

106

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One strategic action which is often taken by firms in need of a turnaround is to bring in a new chief executive officer (CEO). Many observers argue, however, that having done this the new CEO must replace large numbers of top managers in order to effect a change in the firm's interactions and subsequent performance. Critics of this perspective insist that just the opposite is true. Substantial levels of turnover may only serve to further disrupt the organization decreasing performance still more. This controversy is addressed in the following study using a sample of 84 firms all of which experienced CEO succession during the year 1980. Analyses rely on a three-year-period pre-succession and three-year period post-succession. Three hypotheses are proposed. First, poor performance prior to CEO succession leads to greater turnover afterward. Second, that turnover is curvilinearly related to performance after the succession. And, finally, that successor type (i.e. whether the CEO was an inside or outside candidate) is related to the level of turnover in upper level management positions in the post-succession period. The results from tests of these hypotheses are presented, and the implications of these findings are discussed.

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“…Grusky (1960) constructed empirical analysis model to reveal the influence factors for the first time, and study on the economic consequences of CEO turnover in the 1960s [10] . Subsequently, there were a lot of empirical research literatures about CEO turnover, with empirical research, the research framework of CEO turnover based on the Principal-Agent theory has begun to take shape in the 1970s [11] [12] . The study concluded that the wealth pursuit of shareholders force them continue to set higher target of enterprise value, when the CEO can not meet the value demand, or more suitable candidate can ensure the enterprises value maximization and continuous improvement, they would certainly to change the CEO by the board [13] [14] .…”

Section: Literature Reviewmentioning

confidence: 99%

Path analysis on the effect of CEO turnover on enterprise value based on embeddability perspective

Wang

She-yan

2011

2011 International Conference on Management Science &Amp; Engineering 18th Annual Conference Proceedings

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Social network theory suggests CEO embeds in the internal and external networks of enterprise, and his network embeddability decides the amount of social capital what derived from the network structure, which could become the key to create enterprise value. When CEO turnover occurs, the different internal and external enterprise network embeddability of the original and successor CEO leads to the different the amount of social capital, which leads to the change of enterprises value. Take this theory as basis, the regression analysis with intermediary variables is used to test the logical link among CEO turnover, CEO network embeddability and enterprise value, and test the intermediary effect of CEO network embeddability between CEO turnover and enterprise value. The results of empirical analysis validated that the embeddability is the path of the study on the relationship between CEO turnover and enterprise value..

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Executive Succession in the Corporate Organization: A Current Integration

Cited by 57 publications

References 30 publications

Mapping the successful succession process in family firms: evidence from Greece

Mapping the successful succession process in family firms: evidence from Greece

Top Management Turnover and Ceo Succession: An Investigation of the Effects of Turnover on Performance

Path analysis on the effect of CEO turnover on enterprise value based on embeddability perspective

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