New CEO intervention and dynamics of deliberate strategic change

Abstract

Growing evidence in the executive succession literature and the business press makes clear that new CEOs often attempt to introduce strategic change upon entering their jobs. Yet strategy researchers have generally neglected to document the internal dynamics of these interventions, and many scholars remain pessimistic about the likelihood of success. This paper presents an empirical case study where a new CEO succeeds at strategic change, using an intervention approach we call ‘comprehensive/collaborative’. A set of testable propositions is inferred to explain the unfolding dynamics within this intervention approach, followed by an overall theoretical framework based on a series of phases and underlying themes involving the interplay between the CEO'S actions, rational synoptic planning, and emergent political behavior. Future research needs to expand upon this beginning framework to test our propositions and evaluate other intervention approaches.

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