Abstract

This study explores how the scope of managerial environmental scanning changes after an environmental shift. Using the context of deregulation in airline industry, I examined both within- and across-sector scanning embodied in the presidents' letters in the annual reports between 1973 and 1986. The results indicate that: 1) top management teams (TMTs) who experienced large turnover in membership tended to have broader scope of environmental scanning, both within and across different sectors; 2) TMT demographic heterogeneity positively moderated such linkage between executive turnover and environmental scanning; and 3) output-orientation in top team members' functional background had a positive main effect on the scope of environmental scanning. The results of this study offer a new insight on the effects of executive turnover and the subsequent changes in TMT composition on environmental scanning.

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