Using CEO Succession to Integrate Acquired Organizations: A Contingency Analysis |
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| Authors: | Shoou-Yih Daniel Lee,& Jeffrey A. Alexander |
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| Affiliation: | Department of Sociology, University of Illinois at Chicago, 1007 W. Harrison Street, Chicago, IL 60607-7140,;Department of Health Management and Policy, School of Public Health, The University of Michigan, 109 Observatory, Ann Arbor, MI 48109-2029, USA |
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| Abstract: | The study proposes that organizations engaged in related acquisition may encourage CEO succession as a mechanism for integrating acquired organizations. Further, we suggest that the risk of CEO succession at the time of acquisition will vary based on the need for integrative action and the power of acquired organizations. Results show that CEO succession is more likely when the participating organizations have incompatible types of ownership and when acquired CEOs have longer tenure than their counterparts. Conversely, the probability of CEO succession is lower among larger acquired organizations. Performance of the acquired organization does not affect the relationship between related acquisition and CEO succession. |
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