The role of chief executive tenure for public organizations' hiring of management consultants

Abstract Public organizations increasingly rely on management consultants to access expertise, impose reforms, and drive organizational change, and spend large sums each year on their services. Despite this, we know little about the antecedents of public organizations' use of management consulting services. Drawing on upper echelon theory, a longitudinal hypothesis‐testing study of the hiring of management consultants in 72 Swedish public organizations, and interviews with Swedish chief executives (CEs), we find an inverted U‐shaped relationship between CE tenure and public organizations' use of management consulting services. We also find that this relationship is moderated by CEs' previous experience and managerial discretion. These findings contribute to theorizing on the use of management consulting services and the influence of CEs in public organizations.