Performance Outcome of Leadership Succession at Foreign Subsidiaries in Japan. Does Nationality Matter?
AbstractLeadership succession has been an important topic for research and management practice because of its effect on firm performance. This study integrates leadership succession and expatriate staffing literatures by investigating performance outcomes of leadership succession at foreign subsidiaries in Japan. We distinguished four types of CEO successors: expatriate followers (expatriate succeeds another expatriate), localizers (local manager succeeds an expatriate), local followers (local manager succeeds another local manager), and ambassadors (expatriate succeeds a local manager). Our theory and evidence from 2,113 firm-year observations, including 521 successions, suggests that successor types have direct and moderating effects with contextual firm-level factors on subsidiary performance. We extend agency theory by showing that both local and foreign subsidiary CEOs pursue their own, unique interests affecting firm performance in different ways.
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Bibliographic InfoPaper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2012-07.
Length: 36 pages
Date of creation: Feb 2012
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-08 (All new papers)
- NEP-BEC-2012-03-08 (Business Economics)
- NEP-CSE-2012-03-08 (Economics of Strategic Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David M Brock & Oded Shenkar & Amir Shoham & Ilene C Siscovick, 2008. "National culture and expatriate deployment," Journal of International Business Studies, Palgrave Macmillan, vol. 39(8), pages 1293-1309, December.
- Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
- Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 411-432, September.
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