Non-CEO executive mobility: The impact of poor firm performance and TMT attention. Issue 4 (August 2015)

• Record Type: Journal Article
• Authors: Buyl, Tine; Boone, Christophe; Wade, James B.
• Is Part Of: European management journal. Volume 33:Issue 4(2015:Aug.)
• Page Start: 257
• Page End: 267
• Publication Date: 2015-08
• Subjects: Management -- Periodicals; Management -- Europe -- Periodicals; Gestion -- Périodiques; Gestion -- Europe -- Périodiques; Management; Europe; Periodicals; Electronic journals; 658.0094
• DOI: 10.1016/j.emj.2015.02.001
• Languages: English
• ISSNs: 0263-2373

Abstract

<abstract abstract-type="author" id="ab0010"> <title id="st0010">Abstract</title> <sec> <p id="sp0010">We present a comprehensive and integrative study of non-CEO executive mobility, proposing two complementary approaches: (1) mobility as a <italic>reactive</italic> process, driven by poor organizational performance (the dominant approach in prior literature) and (2) mobility as a <italic>proactive</italic> 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.</p> </sec> </abstract>