Who directs strategic change? Director experience, the selection of new CEOs, and change in corporate strategy
Version of Record online: 20 NOV 2001
Copyright © 2001 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 22, Issue 12, pages 1113–1137, December 2001
How to Cite
Westphal, J. D. and Fredrickson, J. W. (2001), Who directs strategic change? Director experience, the selection of new CEOs, and change in corporate strategy. Strat. Mgmt. J., 22: 1113–1137. doi: 10.1002/smj.205
- Issue online: 20 NOV 2001
- Version of Record online: 20 NOV 2001
- Manuscript Accepted: 16 APR 2001
- Manuscript Received: 15 DEC 1999
We develop a theory of board-directed strategic change in which directors (1) conceive changes in corporate strategy that reflect the strategies of their own home companies, and (2) select new CEOs who have prior experience with similar strategies to facilitate implementation. The findings show that, while the experience of new CEOs appears to predict corporate strategic change, these effects disappear after accounting for board experience. Thus, our results suggest that executive effects on strategy can mask board effects. Copyright © 2001 John Wiley & Sons, Ltd.