Strategic Change in Tourism and Hospitality: Impact of CEOs’ and Boards’ Experiences

While the tourism and hospitality industry generally prioritizes professional experience when selecting leaders, its role in guiding strategic decisions is underresearched. This study explores the impact of the work experiences of CEOs and boards on strategic change, using Panel Feasible Generalized Least Squares analysis on data from American public firms in this industry. The findings reveal that both CEOs’ and boards’ generalist experiences increase strategic deviation from the industry norm. Notably, this study indicates that the board is the predominant driver of strategic change, overshadowing the CEO’s role. Different effects of age, gender, and education are also observed between the CEO and the board on strategic deviation. Furthermore, differences in business environments and governance structures distinctly influence how individual traits shape corporate behavior. This research extends the upper echelons theory, highlighting the need to incorporate the board???s attributes and industry nuances for a better understanding of strategic choices. It also provides critical insights for investors regarding leader selection within the tourism and hospitality industry.