CEO Succession and Firm’s Change in Degree of Internationalization:The Moderating Effects of External and Internal Environment
Date Issued
2008
Date
2008
Author(s)
Lin, Wen-Ting
Abstract
In this paper, we examined CEO succession events to explore the effects of the CEO succession process, including outside succession and new CEO/existing chairman dissimilarity, as well as examining post-succession top management team structure change and ownership structure change, where these factors were related to firm’s change in its degree of internationalization. In addition, we found that external industry environments and internal organizational environments had moderating effects.e tested hypotheses by using 2000-2005 data from 187 succession observations for the listed companies in Taiwan as a research sample. The results show that firm will opt for higher levels of change in its international scale degree when it has: (1) outside succession, (2) dissimilarity between CEO successor and existing chairman, and (3) post-succession top management team structure change. Moreover, the impact of outside succession and post-succession change in a firm’s degree of international scale is raised significantly when the firm faces a munificent or complex industry environment. Finally, we found that pre-succession performance presented a negative moderating effect in a firm’s internationalization degree change.ogether, these findings highlight the need to consider CEO successor selection, training, and environmental factors for evaluating the change in a firm’s degree of internationalization. The contributions of this paper are to upper echelon issues (CEO, TMT, and ownership structure) and the international business literature.
Subjects
CEO Succession
Post-TMT Structure Change
Post-Ownership Structure Change
Internationalization Degree Change
Type
thesis
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