Dimitrios Georgakakis

CEO Succession Origin and Firm Performance: A Multilevel Study

There has been much controversy concerning the relationship between outside CEO succession origin and firm performance. Some scholars take the organizational-adaptation view to highlight the benefits of outside succession; yet others adopt the organizational-disruption view to pose the selection of an outsider CEO as a disruptive and disadvantageous event for organizations. In this study, we develop an integrated multilevel framework that reconciles these opposing perspectives and examines the conditions under which the benefits of outside CEO succession outweigh the costs. Data from 109 CEO succession events in large international firms show that the performance advantages of outside succession materialize when the new CEO: (a) socio-demographically resembles incumbent executives, (b) possesses a variety of experience, and (c) is hired by a well-performing firm operating in a munificent industry. Overall, our research demonstrates that the performance implications of new CEO origin should not be considered in isolation, but in interaction with multilevel characteristics.

Boards of directors and organizational ambidexterity in knowledge-intensive firms

Abstract We examine the relation between boards of directors’ knowledge heterogeneity and organizational ambidexterity (OA) (i.e. simultaneous exploration and exploitation) in knowledge-intensive firms (KIFs). Although the literature on OA has started to emphasize its antecedents, the role of the board remains unaddressed. This is an important omission, as boards have become increasingly involved in strategy-making. In turn, studies on boards have looked at their influence on either exploration- or exploitation-type strategies. Yet, KIFs particularly need to balance both exploration and exploitation to renew their knowledge base. We draw on knowledge-based perspectives to disentangle the benefits and costs of board knowledge heterogeneity for driving OA in KIFs. Our empirical analysis based on a longitudinal panel of UK pharmaceutical firms provides support for our hypothesized U-shaped relation. Our findings suggest that the benefits of knowledge heterogeneity only outweigh the costs beyond a particular threshold. Overall, our theoretical approach and allied findings advance the literature by introducing boundary conditions to the resource provision role of boards in KIFs. We discuss contributions for organizational learning, strategic leadership, and human resource management. We conclude with implications for theory and practice, as well as key opportunities for future research.

Regionalization strategy and performance: The moderating role of industry dynamism and top management team diversity

Purpose – This paper contributes to the debate about the performance implications of adopting a regional as opposed to a global strategic posture. The aim of this paper is to argue that the performance effects of a regionalization strategy vary based on the characteristics of the industry in which the MNE operates and the composition of its top management team (TMT).Design/methodology/approach – This analysis is based on a cross‐sectional dataset of 211 large European MNEs headquartered in four Western European economies at the end of 2005.Findings – Results show that firms adopting a regional orientation outperform MNEs with global strategic positioning. This positive relationship is less pronounced under conditions of industry dynamism and inter‐regional TMT diversity.Originality/value – The study contributes to our understanding of whether and under what conditions MNEs benefit from adopting a regional as opposed to a global strategic posture.

Corporate Governance and Initial Public Offerings: Corporate governance and initial public offerings in Switzerland

This chapter describes the current state of corporate governance in Switzerland following the most recent governance reforms introduced in 2007. Further, using a sample of all Swiss IPOs between 2006 and 2008, it investigates whether newly listed firms tend to follow the recommended corporate governance principles, and whether ownership concentration in these firms continues to be high. Results show that Swiss IPOs and, in extension, the Swiss governance system are increasingly falling in line with international corporate governance standards. Despite this positive picture, however, ownership concentration in Swiss IPOs continues to be high. Implications and future research directions are discussed

Differences that matter: hiring modes and demographic (dis)similarity in executive selection

Scholars, practitioners, and policymakers have long acknowledged the importance of understanding the antecedents of top management team (TMT) composition. Yet, research on how and why firms select executives who are demographically dissimilar to incumbent TMT members remains limited. We take a step toward answering these questions by employing a sample of 575 individual-level executive appointments at 170 large European firms between 2005 and 2009. Drawing on the person-group fit perspective, we argue that firms are more likely to appoint socio-demographically dissimilar executives through internal promotion – while external hires are more likely to socio-demographically resemble incumbent top managers. Our results support the hypothesized relationship. They also show that this relationship is influenced by the level of administrative complexity and environmental uncertainty facing the firm. Overall, our theory and results enhance our understanding of ‘why top management teams are composed the way they are’, by highlighting the impact of internal and external hiring modes in the selection of demographically (dis)similar executives.

New CEO Origin and Firm Performance: A Multilevel Investigation

This paper seeks a better understanding of the performance implications of CEO succession origin. Drawing on relational demography, information processing and contingency theories, we highlight the multilevel nature of the CEO succession and firm performance relationship. We argue that the extent to which outside CEO succession is beneficial or disadvantageous for firm performance depends on the individual level characteristics of the new CEO, as well as the organizational and industry level conditions facing the firm. Data from 104 CEO succession events at large international firms between 2005 and 2009 shows that the performance benefits of outside CEO succession are more likely to materialize when the outsider CEO: a) is socio-demographically similar to incumbent top managers, b) has acquired international experience from various countries, and c) is hired by a highly performing firm that operates under conditions of industry munificence. Overall, our study demonstrates that the effects of CEO successi...