Corporate strategy, executive selection, and firm performance

✍ Scribed by James P. Guthrie; Deepak K. Datta

• Publisher: John Wiley and Sons
• Year: 1998
• Tongue: English
• Weight: 185 KB
• Volume: 37
• Category: Article
• ISSN: 0090-4848
• DOI: 10.1002/(sici)1099-050x(199822)37:2<101::aid-hrm2>3.0.co;2-#

✦ Synopsis

This article investigates three related questions: (1) Is corporate diversification strategy associated with the level of firm-specific experience (tenure) of selected CEOs? (2) Are tenure levels of selected CEOs related to subsequent organizational performance? and (3) Does diversification strategy influence the impact that CEO firm-specific experience has on subsequent organizational performance? Results indicate that while diversification levels do not relate to extent of tenure, the selection of CEOs with lower levels of firm-specific experience results in significantly improved performance among nondiversified firms. No such relationship is observed in more diversified firms.