The Performance Consequences of Top Management Successions THE ROLES OF ORGANIZATIONAL AND ENVIRONMENTAL CONTEXTS

As an exploratory step toward integrating differing views in the field of top management succession, this study takes an open system’s perspective and examines the effect of top management succession on organizational performance, in particular decision-making accuracy, under conditions where various organizational and environmental factors can interact. Through a formal computer simulation model that captures the basic behaviors of human decision making and the fundamental characteristics of organizational and environmental settings, the results show that whether top management successions may affect organizational performance, and if so, how organizational performance may be affected, depends on such contextual variables as industry environment, organizational structure, succession type, and organizational age. This study has also demonstrated the importance of moving toward a more systematic and precise contingency approach and the power of computer modeling in understanding the multilevel process of top management succession in complex and dynamic organizations.