Article ID Journal Published Year Pages File Type
1014761 European Management Journal 2015 11 Pages PDF
Abstract

We present a comprehensive and integrative study of non-CEO executive mobility, proposing two complementary approaches: (1) mobility as a reactive process, driven by poor organizational performance (the dominant approach in prior literature) and (2) mobility as a proactive process, reflecting incumbent TMTs' patterns of (exploratory and exploitative) attention. Using a sample of 1168 observations proceeding from 197 US organizations (2000–2011), we empirically validate that non-CEO executives' exit and inflow is driven by poor organizational performance, and that CEO replacement mediates this effect (i.e., the so-called ‘sweep-out effect’). Furthermore, the probability of non-CEO executive inflow is higher when the incumbent TMT has a high level of exploratory attention and lower when there is a high level of exploitative attention. These ‘proactive’ effects occur over and above the ‘reactive’ processes of poor organizational performance.

Related Topics
Social Sciences and Humanities Business, Management and Accounting Business and International Management
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