The Impact of Functional Background and Top Executive Mobility on Firm Survival

46 Pages Posted: 23 Jul 2014  

Y Sekou Bermiss

University of Texas at Austin

Johann Peter Murmann

UNSW Australia Business School - AGSM

Date Written: April 22, 2014

Abstract

Do some top executives matter more than others? Integrating insights from upper echelons and executive mobility research, we suggest that the functional roles performed by top executives shape their value to the firm. We examine the effects of inter-firm executive mobility on firm survival for New York City advertising firms from 1924 to 1996. We find that, while losing any top executive is damaging, the loss of a top executive whose functional role focuses on internal firm processes is more detrimental to firm survival than losing a top executive whose functional role focuses on managing external exchange relationships. Additionally, in situations when multiple executives leave simultaneously, firms are more negatively affected when the group departing is functionally heterogeneous.

Keywords: Executive Mobility, Top Management Teams, Firm Survival

JEL Classification: M10, L84, M50, J63

Suggested Citation

Bermiss, Y Sekou and Murmann, Johann Peter, The Impact of Functional Background and Top Executive Mobility on Firm Survival (April 22, 2014). UNSW Australia Business School Research Paper No. 2014 STRE 02. Available at SSRN: https://ssrn.com/abstract=2470068 or http://dx.doi.org/10.2139/ssrn.2470068

Yerodin Sekou Bermiss

University of Texas at Austin ( email )

Austin, TX 78712
United States

Johann Peter Murmann (Contact Author)

UNSW Australia Business School - AGSM ( email )

UNSW Sydney, NSW 2052
Australia
+61-2-9385-9733 (Phone)

HOME PAGE: http://professor-murmann.net

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