The Event of Ceo Succession, Performance, and Environmental Conditions

Osborn, Richard N.; Jauch, Lawrence R.; Martin, Thomas N.; Glueck, William F.

doi:10.5465/255833

Cited by 22 publications

(36 citation statements)

References 15 publications

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“…Barker and Duhaime, 1997;Goodstein and Boeker, 1991;Lant, Milliken and Batra, 1992;Miller, 1993;Wiersema, 1992;Zu´n˜iga-Vicente, Fuente-Sabateá nd Sua´rez-Gonza´lez, 2005) but not supported by others (e.g. Boeker, 1997;Osborn et al 1981;Sakano and Lewin, 1999). Proxies for organizational inertia such as firm size can reveal a negative impact on strategic change (e.g.…”

mentioning

confidence: 96%

Testing the Time‐Variancy of Explanatory Factors of Strategic Change¹

Vicente‐Lorente

Zúñiga‐Vicente

2006

British J of Management

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The article proposes an empirical framework able to: (1) assess the relative validity of both adaptive and inertial views of strategic change and (2) verify the potential time-or context-dependency by testing the structural stability of the empirical model, in Spanish banks, 1983Spanish banks, -1997. Results offer inconclusive findings regarding (1) but strong evidence to answer (2). The assumption of structural stability is rejected and the effect of many explanatory factors considered in the empirical model varies over time as some factors show different effects and/or significance levels depending on the period considered. These findings suggest that explanatory models of strategic change should be viewed as 'time-' or 'context-dependent'. The article provides a conceptual model in which alternative explanations operate in a sequential way. The results highlight, first, that inconclusive past findings about adaptive versus inertial views should be reviewed under this new evidence, and future empirical research must assure that its methods and interpretations are robust to potential structural breakdowns; and second, the limitations raised by the static approach offered by the available theories/models when approaching the dynamic and complex nature of strategic change. Theoretical developments and implications for managerial practice are suggested.

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confidence: 96%

Testing the Time‐Variancy of Explanatory Factors of Strategic Change¹

Vicente‐Lorente

Zúñiga‐Vicente

2006

British J of Management

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“…It is somewhat surprising that recognition of problem loans did not predict management turnover because firm performance has often been found to lead to the exit of managers (e.g., Allen & Panian, 1982;Dalton & Kesner, 1985;Osborn, Jauch, Martin, & Glueck, 1981). Still, it should be noted that the effect of performance on turnover can be conditioned by the relative ability of executives to retain their positions (Pfeffer,198Ib).…”

Section: Direction Of Effectsmentioning

confidence: 99%

Escalation at the credit window: A longitudinal study of bank executives' recognition and write-off of problem loans.

Staw¹,

Barsade²,

Koput

1997

Journal of Applied Psychology

144

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Although the escalation literature has grown steadily over the past 20 years, there has been very little research bridging the gap between laboratory experiments and qualitative field studies on escalation. What has been missing are quantitative tests of escalation hypotheses in their natural context. This study helps fill such a gap by testing the responsibility hypothesis within the banking industry. It was predicted that the turnover of senior bank managers would lead to a deescalation of commitment to problem loans. Data collected from 132 California banks over a 9-year period showed that bank executive turnover predicted both provisions for loan losses and the write-off of bad loans. In contrast, provisions and write-offs were not found to influence executive turnover. The implications of these results are discussed in terms of both the escalation literature and practical ways to improve decision making in the banking industry.

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“…However, as Starbuck (1983) has elaborated CEOs may block changes within their firm, but they have little influence on social changes outside their firm. Hence, to the degree that adaptation is inhibited, broader social changes may make the CEO appear out of step leading to his or her dismissal (Osborn, Jauch, Martin, & Glueck, 1981;Pfeffer & Salancik, 1978). Thus, future research may explore how strategic change following a succession event is moderated by broader social changes that occurred prior to the succession event, but which the incumbent leader did not acknowledge through appropriate organizational adaptation.…”

Section: Exploring the Impact Of Cultural Contextmentioning

confidence: 98%