This study examines the role of top management team (TMT) member succession in breaking organizational inertia. We compare the impact of two types of change in TMTs-in member number and demographic heterogeneity-on subsequent strategic reorientation using data on the diversification activities of firms in the Japanese textile industry. Our findings suggest that executive succession does not trigger strategic change unless succession entails change in the values and interests of executives embedded in their demographic traits.
- Demographic approach
- Executive succession
- Strategic change
ASJC Scopus subject areas
- Business and International Management
- Economics, Econometrics and Finance (miscellaneous)
- Strategy and Management