Articlegreen1996

The Effects of CEO Succession and Tenure on Failure of Rural Community Hospitals

29 citations0/0 files storedThe Journal of Applied Behavioral Science

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Organizational Leadership and Management Strategies Corporate Finance and Governance Human Resource and Talent Management

Abstract

Little research has examined the independent and interactive effects of CEO succession and tenure on organizational failure. In this study, the authors found independent effects of CEO succession and tenure on organizational failure in a group of small rural hospitals. Consistent with the authors' predictions, CEO succession increased risk of organizational failure, whereas tenure affected failure in a U-shaped fashion. Risk of failure first declined with CEO tenure but increased steadily after the sixth year of tenure. No interaction was found between CEO tenure and succession.

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References

1984Upper Echelons: The Organization as a Reflection of Its Top Managers 1978Men and Women of the Corporation.1984Structural Inertia and Organizational Change 1978Men and Women of the Corporation 1989Organizational Ecology 1990Top-Management-Team Tenure and Organizational Outcomes: The Moderating Role of Managerial Discretion 1983Sociological Methodology 1982 1979The Structuring of Organizations: A Synthesis of the Research

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