Leader succession and organizational performance: Integrating the common-sense, ritual scapegoating, and vicious-circle succession theories

Abstract

Our study examines the impact of leader succession on organizational performance. We use organizational learning theory and the concept of time compression diseconomies to frame our conceptual arguments. Previous sports-related studies have concluded that between-season succession (ritual scapegoating theory) does not impact team performance, and within-season succession (vicious-circle theory) tends to worsen team performance. We confirm these conclusions. We also argue that it takes time for a new team leader to “take charge,” and the taking charge process requires that the team and new leader experience regular-season play together in addition to off-season practice to improve performance in the subsequent season (common-sense theory). Evidence from a 60-year data set from the National Hockey League provides support for our hypotheses.