Leadership succession and firm performance in an emerging economy: Successor origin, relational embeddedness, and legitimacy
October 2, 2012 Editor 0
We examine how leadership transition affects firm performance in emerging economies. Building upon the social embeddedness and neo-institutional perspectives, we argue for the importance of alignment between successor origin and social context for firm performance. We suggest that as a baseline outside successors enhance firm profitability because of the large-scale and rapid changes in emerging markets. However, this outsider premium is reduced in firms embedded in family and business group relationships, where family and inside successors can better access network resources. But the outsider premium is amplified in firms embedded in a mature market-based logic, such as high tech or foreign invested firms, because the perceived legitimacy of outsiders facilitates resource acquisition. Our arguments are supported through the analysis of Taiwanese listed firms between 1996 and 2005. Copyright © 2012 John Wiley & Sons, Ltd.
Read more from the original source: Leadership succession and firm performance in an emerging economy: Successor origin, relational embeddedness, and legitimacy
- Too Much Of A Good Thing? Absorptive Capacity, Firm Performance, And The Moderating Role Of Entrepreneurial Orientation
- Bridging the Gender Divide: An Experimental Analysis of Group Formation in African Villages
- Re-reading entrepreneurship in the hidden economy: commercial or social entrepreneurs?
- Learning patterns in venture capital investing in new industries
- Can Bigger Be Faster?
- Logic alone does not lead to innovation
RIM wagers on Blackberry 10’s prevalence in Africa as it reports quarterly loss The Dynamic Linkages between Foreign Direct Investment and Domestic Investment in ECOWAS Countries: A Panel Cointegration Analysis
Subscribe to our stories
- The Partnership for Economic Policy Call for Project Proposals September 29, 2017
- 3 Uncommon Ways ICT Can Aid Delivery of High Impact Agricultural Research and Development September 29, 2017
- 20 Reasons You Should Integrate Tourism into Your Development Agenda September 29, 2017
- How Mobile Applications are Documenting Property Rights in Zambia September 29, 2017
- Which African Governments Spy on Technology Users the Most? September 29, 2017