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External management succession, human capital, and firm performance: an integrative analysis

Author

Listed:
  • Elizabeth E. Bailey

    (Department of Business and Public Policy, 3000 Steinberg Hall-Dietrich Hall, The Wharton School, University of Pennsylvania, Philadelphia, PA 19104-6372, USA)

  • Constance E. Helfat

    (Tuck School of Business, 100 Tuck Hall, Dartmouth College, Hanover, NH 03755, USA)

Abstract

Economic analysis of human capital leads to a somewhat different question than that addressed by other management research on external succession: do differences between external successors in the transferability of their human capital affect firm performance, and if so, how? By comparing external successors that have within-industry and related-industry skills, we find that successors with less transferable (related-industry) skills have greater variance of firm performance. Our analysis provides an example of the benefits of integrating economic concepts with empirical research in competitive strategy, on a topic of central concern in the traditional strategic management literature, namely, top executives. Copyright © 2003 John Wiley & Sons, Ltd.

Suggested Citation

  • Elizabeth E. Bailey & Constance E. Helfat, 2003. "External management succession, human capital, and firm performance: an integrative analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 347-369.
    • Handle: RePEc:wly:mgtdec:v:24:y:2003:i:4:p:347-369
    DOI: 10.1002/mde.1119
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    References listed on IDEAS

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