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Frequent CEO Turnover and Firm Performance: The Resilience Effect of Workforce Diversity
Authors
A Karaevli
A Nyberg
+123 more
AA Cannella
AH Eagly
AS Tsui
C Chadwick
C Grund
C Post
C Stephenson
CA Lengnick-Hall
CA Lengnick-Hall
CKW De Dreu
CO Houle
D Miller
D Miller
D Miller
D Shin
D van Knippenberg
DA Harrison
DA Harrison
DA Harrison
DA Hoffmann
DB Veltrop
DC Hambrick
DC Hambrick
DC Lau
DJ Schepker
DK Datta
EE Kossek
EJ Stendardi
EP Apfelbaum
F Kunze
G Hamel
GA Ballinger
GG Dess
GM McNamara
GR Salancik
H Arrow
H Gao
H Roh
H van Dijk
HA Haveman
I Boulouta
I Filatotchev
IF Kesner
IF Kesner
J McCann
J Pfeffer
J Wegge
JA Colquitt
JA Krug
JD Kammeyer-Mueller
JD Mahadeo
JD Shaw
JF Graham
JK Summers
JL Price
JM Ruiz-Jiménez
JO Gomes
JP Wanous
K de Meulenaere
KA Jehn
KA Jehn
KA Jehn
KA Jehn
KM Kacmar
KM Sutcliffe
KY Williams
L Greiner
L-Y Sun
LH Nishii
LH Nishii
LM Leslie
LM Shore
M Ali
M Marks
M Schneid
M Spence
M Williams
MA Hogg
MA Hogg
MA Huselid
MA Konovsky
MF Wiersema
MF Wiersema
ML Call
ML Tushman
MP Allen
PD Bliese
PJ Richard
PM Blau
PP McDougall
R Takeuchi
S Aryee
S Bear
S Crucke
S Finkelstein
S Tannock
SA Boehm
SE Jackson
SE Jackson
SG Rogelberg
SH Jeong
SK Horwitz
SL Keck
SMB Thatcher
T Hutzschenreuter
T Kuppens
The Society for Human Resource Management (SHRM)
TJ Quigley
TW Lee
TW Lee
V Valls
W Boeker
W Boeker
W Felps
W Shen
W Shen
W Shen
WG Rowe
WM Cohen
Y Kim
Y Kim
Y Zhang
YK Chang
Publication date
1 January 2020
Publisher
'Springer Science and Business Media LLC'
Doi
Cite
Abstract
© 2020, Springer Nature B.V. CEO turnover (or succession) is a critical event in an organization that influences organizational processes and performance. The objective of this study is to investigate whether workforce diversity (i.e., age, gender, and education-level diversity) might have a resilience effect on firm performance under the frequency of CEO turnover. Based on a sample of 409 Korean firms from 2010 to 2015, our results show that firms with more frequent CEO turnover have a lower firm performance. However, firms with more gender and education-level diversity could buffer the disruptive effect of frequent CEO turnover on firm performance to offer a benefit to the organization. Our theory and findings suggest that effectively managing diverse workforce can be a resilience factor in an uncertain organizational environment because diverse workforce has complementary skills and behaviors that can cope better with uncertainty and signals social inclusion of an organization, thus fostering a long-term exchange relationship. These findings contribute to the literature on CEO turnover (or succession) and diversity
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