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Here I come to save the day: Proposing necessary and sufficient conditions for founder-CEO comeback

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  • Krause, Ryan
  • Acharya, Abhijith G.
  • Covin, Jeffrey G.

Abstract

Founder-CEOs have garnered considerable research attention from entrepreneurship scholars. Researchers have built and tested hypotheses about when founders will leave their firms, when they will stay, and how their presence impacts firm performance. However, no theory exists to explain when founders who have left the CEO role will return to the leadership position. A recent string of high-profile Founder-CEO comebacks suggests this is a phenomenon worth studying. Using qualitative comparative analysis on a sample of Founder-CEO successions, we identify configurations of attributes that are necessary and sufficient to produce a Founder-CEO comeback. With this paper, we contribute new theoretical insights about a rare, but important, entrepreneurial phenomenon about which little knowledge exists.

Suggested Citation

  • Krause, Ryan & Acharya, Abhijith G. & Covin, Jeffrey G., 2014. "Here I come to save the day: Proposing necessary and sufficient conditions for founder-CEO comeback," Journal of Business Venturing Insights, Elsevier, vol. 1, pages 26-30.
    • Handle: RePEc:eee:jobuve:v:1-2:y:2014:i::p:26-30
    DOI: 10.1016/j.jbvi.2014.09.004
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    References listed on IDEAS

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    1. Narayanan Jayaraman & Ajay Khorana & Edward Nelling & Jeffrey Covin, 2000. "CEO founder status and firm financial performance," Strategic Management Journal, Wiley Blackwell, vol. 21(12), pages 1215-1224, December.
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    3. Fahlenbrach, Rüdiger, 2009. "Founder-CEOs, Investment Decisions, and Stock Market Performance," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 44(2), pages 439-466, April.
    4. Willard, Gary E. & Krueger, David A. & Feeser, Henry R., 1992. "In order to grow, must the founder go: A comparison of performance between founder and non-founder managed high-growth manufacturing firms," Journal of Business Venturing, Elsevier, vol. 7(3), pages 181-194, May.
    5. Ragin, Charles C., 2000. "Fuzzy-Set Social Science," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226702773, December.
    6. Jain, Bharat A. & Tabak, Filiz, 2008. "Factors influencing the choice between founder versus non-founder CEOs for IPO firms," Journal of Business Venturing, Elsevier, vol. 23(1), pages 21-45, January.
    7. repec:ucp:bkecon:9780226702766 is not listed on IDEAS
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    Cited by:

    1. Mandl, Christoph & Berger, Elisabeth S.C. & Kuckertz, Andreas, 2016. "Do you plead guilty? Exploring entrepreneurs’ sensemaking-behavior link after business failure," Journal of Business Venturing Insights, Elsevier, vol. 5(C), pages 9-13.

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