Abstract
Much upper echelons research focuses on the effect of CEO experience on firm performance outcomes. This paper extends this research stream using human and social capital theories as a framework to examine the effect of CEO experience on the performance of large diversified companies. Our analysis of 239 Fortune “500” companies finds that larger companies are more likely to select insiders and individuals who have more firm-specific experience to be their CEO. We also find that the selection of insiders and CEOs with more firm-specific experience is associated with significantly higher firm performance. These findings highlight the importance of the human and social capital possessed by company insiders, and shed additional light on the strategic leadership of large diversified companies and other complex organizations.
Volume
6
Issue
1
First Page
62
Last Page
71
Rights
© Fort Hays State University
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Recommended Citation
Stimpert, J.L.; Chesley, Julie A.; and Ostrowitz, Amanda S.
(2010)
"The Insider's Advantage: CEO Experience and The Performance of Large Diversified Firms,"
Journal of Business & Leadership: Research, Practice, and Teaching (2005-2012): Vol. 6:
No.
1, Article 7.
DOI: 10.58809/ENET6439
Available at:
https://scholars.fhsu.edu/jbl/vol6/iss1/7
Comments
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