New Executives from Inside or Outside? The Effect of Executive Replacement on Organizational Change

This article investigates how executive succession influences the comprehensiveness of structural changes pursued by public organizations. Executive successions are important events for organizations that provide salient opportunities for introducing organizational change, yet little research has analyzed this relationship. The author argues that the less familiarity a new executive has with the organization and the field in which it works, the more likely it is that comprehensive organizational change will take place. Empirical results from quantitative analyses of executive succession events in Danish municipalities from 1984 to 2000 confirm this. Interestingly, the degree to which new practices are legitimized moderates the findings. Inside successors are more likely to conduct comprehensive structural changes after new practices receive normative and regulatory legitimacy. The article contributes to the literature on executive succession by highlighting how it is an antecedent to different types of organizational change. Contributions to practitioner and public management research are discussed .