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The Impact of Executive Turnover on Entrepreneurial Company's Performance: The Moderating Role CEO's Prior Work Experience in Algeria's Entrepreneurial Business Companies

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  • Yasmine Ouldchikh

    (School of Management, Wuhan University of Technology, Wuhan, 430070)

  • Huatao Peng

    (School of Management, Wuhan University of Technology, Wuhan, 430070)

Abstract

In this study, we examine the effect of executive turnover on the performance of entrepreneurial companies. Additionally, we evaluate the moderating impact of the CEO’s prior experiences to prove how founders’ firsthand knowledge reduces the adverse effects of executives’ departure. Our empirical research uses data from a company’s C-level survey, including 209 entrepreneurial companies in Algeria. The empirical findings demonstrate that executive churn lowers firm performance, which may affect longer-term investments in new initiatives. We also demonstrate that the longer the founder CEO’s prior employment history, the stronger the favorable impacts of executive change are. Our research indicates that the founder and CEO’s entrepreneurial spirit, founded on valuable prior practical knowledge, lessen organizational instability. Our results reveal how executives behave should also be considered, even though the firm’s component is crucial for a new entrepreneurial company’s longevity.

Suggested Citation

  • Yasmine Ouldchikh & Huatao Peng, 2022. "The Impact of Executive Turnover on Entrepreneurial Company's Performance: The Moderating Role CEO's Prior Work Experience in Algeria's Entrepreneurial Business Companies," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 9(1), pages 32-41, November.
    • Handle: RePEc:mgs:ijmsba:v:9:y:2022:i:1:p:32-41
    DOI: 10.18775/ijmsba.1849-5664-5419.2014.91.1003
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    References listed on IDEAS

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    More about this item

    Keywords

    Executive turnover; CEO; Managerial Experience; Company's performance;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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