Leader succession and organizational performance: Integrating the common-sense, ritual scapegoating, and vicious-circle succession theories
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Our study examines the impact of leader succession on organizational performance. We use organizational learning theory and the concept of time compression diseconomies to frame our conceptual arguments. Previous sports-related studies have concluded that between-season succession (ritual scapegoating theory) does not impact team performance, and within-season succession (vicious-circle theory) tends to worsen team performance. We confirm these conclusions. We also argue that it takes time for a new team leader to "take charge", and the taking charge process requires that the team and new leader experience regular-season play together in addition to off-season practice to improve performance in the subsequent season (common-sense theory). Evidence from a 60-year data set from the National Hockey League provides support for our hypotheses. 2005 Elsevier Inc. All rights reserved.