Leader Flows and Organizational Process

A study of the change of leadership in the presidency of 54 petrochemical companies between 1945-1965 revealed that higher turnover increased the merger activity of these companies. Thus, changes in leadership have a significant impact on organizational growth processes. Frequent executive transfers...

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Bibliographic Details
Published in:Academy of Management journal 1978-09, Vol.21 (3), p.463-478
Main Author: Helmich, Donald L
Format: Article
Language:English
Subjects:
Acquisitions & mergers
Chief executive officers
Corporate growth
Corporate presidents
Correlation analysis
Correlations
Impacts
Leadership
Organizational change
Petrochemicals industry
Studies
Successors
Turnover
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Summary:A study of the change of leadership in the presidency of 54 petrochemical companies between 1945-1965 revealed that higher turnover increased the merger activity of these companies. Thus, changes in leadership have a significant impact on organizational growth processes. Frequent executive transfers were caused more by environmental contingencies rather than internal causes such as organiztional performance or plant size. It was also found that as the rate of change in succession increased, so did the debt to equity ratio. Companies with higher net stockholders' equity and those that are more dispersed tend to replace their corporate presidents more frequently.
ISSN:0001-4273
1948-0989
DOI:10.5465/255727