A Managerial Capital Perspective on Chief Marketing Officer Succession

Wang, Rui, Alok R. Saboo, and Rajdeep Grewal (2015), "A Managerial Capital Perspective on Chief Marketing Officer Succession," International Journal of Research in Marketing, 32 (2), Forthcoming.

54 Pages Posted: 25 Nov 2014

See all articles by Rui Wang

Rui Wang

Peking University

Alok R. Saboo

Georgia State University

Rajdeep Grewal

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School

Date Written: November 24, 2014

Abstract

Recognizing the importance of the person who occupies the chief marketing officer (CMO) position, we posit that a CMO’s managerial capital, as signaled by his or her education, origin, and experience, indicates what a new CMO can bring to the table. We theorize that the value of CMO managerial capital is contingent on organizational demographics (firm age and size) and industry environment (dynamism and growth). Results from multi-source data collected on 303 CMO successions between 1996 and 2009 and an event study approach with corrections for unobserved heterogeneity and endogeneity reveals a positive influence of CMO’s education and outsider status on abnormal returns associated with CMO succession and a U-shaped relationship between CMO experience and firm value. In terms of the moderation effects, we find that the value of CMO experience increases as the firm size increase; value of CMO external origin decreases whereas that of CMO experience increases with firm age; value of CMO education increases whereas that of outsider status and experience decreases with industry dynamism; and value of CMO education and experience increases as industry growth increases.

Suggested Citation

Wang, Rui and Saboo, Alok R. and Grewal, Rajdeep, A Managerial Capital Perspective on Chief Marketing Officer Succession (November 24, 2014). Wang, Rui, Alok R. Saboo, and Rajdeep Grewal (2015), "A Managerial Capital Perspective on Chief Marketing Officer Succession," International Journal of Research in Marketing, 32 (2), Forthcoming., Available at SSRN: https://ssrn.com/abstract=2530106

Rui Wang

Peking University ( email )

No. 38 Xueyuan Road
Haidian District
Beijing, Beijing 100871
China

Alok R. Saboo (Contact Author)

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30302
United States

HOME PAGE: http://robinson.gsu.edu/profile/alok-r-saboo/

Rajdeep Grewal

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School ( email )

McColl Building
Chapel Hill, NC 27599-3490
United States

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