Leader Tenure And Organizational Performance: The Moderating Role Of Prior Leadership Experience

Abstract

Drawing on upper echelons theory we develop a model of how the type and extent of prior leadership experience moderates the inverted U-shaped relationship between leader tenure and organizational performance. We test our model using the population of organizations in the English Premier League (1996-2010), a context in which the appointment of leaders with prior leadership experience is a well-established feature. Our findings suggest that: (i) leaders with higher levels of prior domestic leadership experience amplify the inverted U-shaped relationship between leader tenure and organizational performance; and in contrast, (ii) leaders with higher levels of prior foreign leadership experience dampen the relationship.