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The Origin of Chief Executive Officers and Performance in Hybrid Businesses: The Case of Microfinance

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  • Roy Mersland

    (UIA - University of Agder)

  • Leif Atle Beisland
  • Daudi Pascal

Abstract

This study examines the relationship between the origin of chief executive officers and performance in hybrid businesses using a sample of 353 microfinance institutions from 76 countries during 1996-2011. The statistical results suggest that microfinance institutions whose chief executive officers have been recruited internally perform better compared to institutions with externally-hired chief executive officers. The findings are consistent with the view that insider chief executive officers have firm-specific skills, experience and network resources that result in enhanced performance in hybrid businesses. Therefore, boards of microfinance institutions searching for a new chief executive officer should look for suitable internal candidates.

Suggested Citation

  • Roy Mersland & Leif Atle Beisland & Daudi Pascal, 2019. "The Origin of Chief Executive Officers and Performance in Hybrid Businesses: The Case of Microfinance," Post-Print hal-05221024, HAL.
    • Handle: RePEc:hal:journl:hal-05221024
    DOI: 10.1111/jsbm.12381
    Note: View the original document on HAL open archive server: https://hal.science/hal-05221024v1
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