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Title
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CEO turnover and openness of decision-making processes in the post-succession phase : a threat-rigidity perspective
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Author
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Abstract
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| Management theories on the consequences of CEO turnover in public organizations suggest that top leader succession is followed by a period of internal instability, with potential negative effects on organizational performance. This study proposes that a lack of openness in organizational strategic decision-making processes exacerbates the aforementioned post-succession instability phase since this hinders the alignment between the CEO and the upper, middle and lower managerial levels. Drawing on threat-rigidity theory, we hypothesize that as CEO turnover is perceived as a threatening event for the organization, subsequent rigidizing effects such as the centralization of strategic decision-making and a restriction of information flows come into play. Consequently, only a limited in-group of managers has the opportunity of giving strategic input and receiving relevant work-related information, thereby excluding other important feedback loops from the strategic-decision making process. This potentially damages the quality of strategic decisions and their implementation process and thereby negatively affects the quality of public services. Survey responses of managers were combined with a novel database on CEO turnover in the US Federal Government; results confirm our hypotheses. |
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Language
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English
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Source (book)
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British Academy of Management Conference (BAM2020), 2nd - 4th September, 2020
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Publication
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2020
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Volume/pages
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p. 1-9
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