IDEAS home Printed from https://ideas.repec.org/p/zbw/fubsbe/201025.html
   My bibliography  Save this paper

Strategic or status quo-preserving business exit: (how) do CEO turnover and succession matter?

Author

Listed:
  • Decker, Carolin
  • Bresser, Rudi K. F.
  • Mellewigt, Thomas

Abstract

Business exit has implications for a firm's corporate strategy. Two types of exit events are distinguished: those that involve strategic change and those that are status quo-preserving. This study investigates the impact of CEO turnover and succession on strategic versus status quo-preserving business exits. Based on a sample of CEO turnover and succession events and subsequent business exits of German corporations from different industries, our results suggest that neither voluntary nor involuntary CEO turnover is relevant to business exit. In contrast, outsider succession significantly affects the likelihood of strategic business exit, while a corporation's performance does not moderate this relationship.

Suggested Citation

  • Decker, Carolin & Bresser, Rudi K. F. & Mellewigt, Thomas, 2010. "Strategic or status quo-preserving business exit: (how) do CEO turnover and succession matter?," Discussion Papers 2010/25, Free University Berlin, School of Business & Economics.
    • Handle: RePEc:zbw:fubsbe:201025
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/43685/1/637734254.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thomas Mellewigt & Anoop Madhok & Antoinette Weibel, 2007. "Trust and formal contracts in interorganizational relationships - substitutes and complements," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(8), pages 833-847.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yi-Chi Hsiao & Hsueh-Liang Wu & Chun-Ping Yeh, 2023. "An investigation of the bridging interface strategies used by Chinese MNE when undertaking FDI to Taiwan," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1485-1512, September.
    2. Francesco Saverio Massari & Maria Teresa Riggio & Donato Calace, 2015. "Legal and Managerial Implications of the Italian ‘Contratto Di Rete’," Management, University of Primorska, Faculty of Management Koper, vol. 10(2), pages 131-148.
    3. Shoeb Ahmed Memon & Steve Rowlinson & Riza Yosia Sunindijo & Hafiz Zahoor, 2021. "Collaborative Behavior in Relational Contracting Projects in Hong Kong—A Contractor’s Perspective," Sustainability, MDPI, vol. 13(10), pages 1-15, May.
    4. Russell KAMPANI & Pierre MOSTERT & Michelle Caroline VAN DER MERWE, 2023. "Trust And Economic Satisfaction As Antecedents, And Loyalty As Outcome, Of Small Business Customers’ Cooperation And Coordination In Banking Relationships," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 7-24, May.
    5. Guo, Shiau-Ling, 2023. "The governance implication of the geographic concentration of franchise activities for franchise relationships," Journal of Business Research, Elsevier, vol. 157(C).
    6. Ali Shamsollahi & Danielle A. Chmielewski-Raimondo & Simon J. Bell & Reza Kachouie, 2021. "Buyer–supplier relationship dynamics: a systematic review," Journal of the Academy of Marketing Science, Springer, vol. 49(2), pages 418-436, March.
    7. Ceci, Federica & Iubatti, Daniela, 2012. "Personal relationships and innovation diffusion in SME networks: A content analysis approach," Research Policy, Elsevier, vol. 41(3), pages 565-579.
    8. Huo, Baofeng & Ye, Yuxiao & Zhao, Xiande, 2015. "The impacts of trust and contracts on opportunism in the 3PL industry: The moderating role of demand uncertainty," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 160-170.
    9. Malhotra, Deepak & Lumineau, Fabrice, 2011. "Trust and collaboration in the aftermath of conflict: the effects of contract structure," MPRA Paper 38358, University Library of Munich, Germany.
    10. Vanesa Solís-Rodríguez & Manuel González-Díaz, 2017. "Differences in contract design between successful and less successful franchises," European Journal of Law and Economics, Springer, vol. 44(3), pages 483-502, December.
    11. Lumineau, Fabrice & Henderson, James, 2012. "The influence of relational experience and contractual governance on the negotiation strategy in buyer-supplier disputes," MPRA Paper 38510, University Library of Munich, Germany.
    12. Moritz Ehrtmann & Lars Holstenkamp & Timon Becker, 2021. "Regional Electricity Models for Community Energy in Germany: The Role of Governance Structures," Sustainability, MDPI, vol. 13(4), pages 1-24, February.
    13. Yingmiao Qian & Mengjun Wang & Yang Zou & Ruoyu Jin & Ruijia Yuan & Qinge Wang, 2019. "Understanding the Double-Level Influence of Guanxi on Construction Innovation in China: The Mediating Role of Interpersonal Knowledge Sharing and the Cross-Level Moderating Role of Inter-Organizationa," Sustainability, MDPI, vol. 11(6), pages 1-19, March.
    14. Long, Chris P., 2018. "To control and build trust: How managers use organizational controls and trust-building activities to motivate subordinate cooperation," Accounting, Organizations and Society, Elsevier, vol. 70(C), pages 69-91.
    15. Wang, Yu & Chen, Yongqiang & Wang, Wenqian & Tang, Yinqiu, 2019. "Differentiating two types of learning in contract design: Evidence from the construction industry," Scandinavian Journal of Management, Elsevier, vol. 35(1), pages 1-11.
    16. Soluk, Jonas & Decker-Lange, Carolin & Hack, Andreas, 2023. "Small steps for the big hit: A dynamic capabilities perspective on business networks and non-disruptive digital technologies in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    17. Laura Poppo & Kevin Zheng Zhou, 2014. "Managing contracts for fairness in buyer–supplier exchanges," Strategic Management Journal, Wiley Blackwell, vol. 35(10), pages 1508-1527, October.
    18. Matthias Fink & Isabella Hatak & Reinhard Schulte & Sascha Kraus, 2011. "Verträge, Vertrauen und Unternehmenserfolg in Automobilclustern," Schmalenbach Journal of Business Research, Springer, vol. 63(7), pages 689-710, November.
    19. Tengjian Zou & Gokhan Ertug & Ilya R. P. Cuypers & Donald L. Ferrin, 2023. "Trust across borders: a review of the research on interorganizational trust in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(8), pages 1379-1401, October.
    20. Hagedoorn, John & Ridder, Ann-Kristin, 2012. "Open innovation, contracts, and intellectual property rights: an exploratory empirical study," MERIT Working Papers 2012-025, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:fubsbe:201025. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/fwfubde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.