When a company wants to appoint a new CEO for strategic changes, they would be better off in the long term by promoting someone from inside the company rather than hiring someone from the outside, according to a new study from Rice University's Jones Graduate School of Business.
The study, "Once an Outsider, Always an Outsider? CEO Origin, Strategic Change and Firm Performance," has been accepted for publication in Strategic Management Journal and was co-authored by Anthea Zhang, the Jesse H. Jones Distinguished Associate Professor of Management at Rice.