Abstract
This longitudinal study investigates the determinants and effects of executive succession for high- and low-performing minicomputer organizations. Findings suggest that performance shortfalls drive executive succession in low performers, while strategic reorientations prompt succession for high-performing firms. The effects of succession depend on whether strategic reorientation accompanies executive change. Only when executive succession occurs with reorientations does future organization performance increase. Otherwise, there is no association between executive succession and subsequent organization performance. Executive succession and strategic reorientation appear to be important strategic levers affecting organizational performance over time.
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