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    New CEO Succession Origin and Strategic Change in Turnaround Situations: A Relational Perspective
    (2021-7-29) ; ;
    Georgakakis, Dimitrios
    We study the effect of new CEO succession origin on strategic change in firms facing turnaround situations. Taking a ‘relational perspective’ of CEO succession, we argue that the degree to which outside CEO succession associates with strategic change depends on the relational network between the outside CEO and key incumbent executives prior to succession. Using data from 108 companies with new CEOs in turnaround situations between 1993 and 2015, we find that high CEO outsiderness has a negative effect on strategic change in firms facing turnaround conditions – while this effect is weaker in the later years of the new CEO’s tenure. We further find that outsider CEOs with more connected intra-TMT network brings a higher degree of strategic change to the firm early after succession. Overall, our paper contributes to the extant literature on CEO succession by underscoring the important role of the relational CEO-TMT interface when a new CEO takes charge with the mandate to bring about strategic change (i.e., in turnaround conditions).
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    Two types of network brokerage: How sense of power, seniority and gender matter
    (2021-7-20) ;
    Bertola, Lara
    Studies demonstrate the importance of brokerage positions in organizations for motivation, promotions and career success. However, we still lack a thorough understanding of how psychological factors like an individual’s sense of power can explain specific differences in brokerage activities and outcomes. In this paper, we seek to explain that the way an individual construes and interprets their sense of power impacts the way that they broker, using either a tertius iungens orientation, such as bringing individuals together, or a tertius gaudens orientation, such as keeping individuals apart. Applying a processual view of brokerage, we show how these two central strategic orientations towards brokerage depend on an individual’s perception of their ability to influence others. We find that actors with a low sense of power more often engage in tertius iungens brokerage while those with a high sense of power more often engage in tertius gaudens brokerage. Findings further demonstrate that gender and the level of seniority also shape the way that brokerage is enacted, with women more often engaging in tertius iungens brokerage, and senior employees more often referring to tertius gaudens brokerage.
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    Why outsider CEOs bring less change: A relational perspective
    (2021-7-8) ; ;
    Georgakakis, Dimitrios
    Extant research on Chief Executive Officer (CEO) succession has long questioned whether the appointment of a new CEO is beneficial, or detrimental, for firms facing conditions of financial distress (Finkelstein, Hambrick & Cannella, 2009). Our paper attends to answer this question by adopting a relational perspective to study the link between new CEO succession origin and strategic change in turnaround conditions. Specifically, we argue, that the degree to which outside CEO succession associates with strategic change depends on the relational network the outsider CEO has established with key incumbent board members prior to succession.
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    Money talks: The impact of investors’ networks on entrepreneurs’ success
    This paper analyzes the role of investors’ network centrality on the company in which they are investing. Our longitudinal (19682020, across industries) study shows that an investor with a central network position is beneficial for entrepreneurs, both preIPO and postIPO. We find that an investor with a central network position increases the likelihood that the investee will obtain subsequent funding, go public, and perform in the long term. We also show that to go public, the startup ideally first needs funding from a central investor – which could even come at the expense of receiving a higher amount from a less central investor – before broadening its investor base to include more investors as it moves toward exit via IPO. We further examine the effect of investor centrality on startup valuation at the time of the IPO and the firm’s short and long term success.
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    Money talks: Empirical insights on the impact of investors’ connections for entrepreneurs’ success
    An important asset for the investor and the company he is investing in are the con- nections that he may have in the industry. It makes for a pool of resources comprised of person/companies he might know or might have worked with, which may prove valuable in the future. The study of the impact of these connections on a company is the subject of my work. It can be rephrased in this fashion: what is the impact of an investor’s connections for the company in which he is investing? My answer to this question is built by viewing a complete network of past relation- ships from all investors. According to this knowledge of previous business links, I investigate the role that the centrality of an investor within the global network can have for his investee. The question can further be broken down to several sub questions. Does invest- ment from a prominent investor at an early stage increase the chances of its investee to secure later successful rounds of funding? And can a favourable network position of an investor increase the odds that a startup will become public?
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    I was just in Shock: Identity Work by European Skilled Migrants Following the Brexit Referendum
    This study examines how skilled EU migrants living in the UK respond to and cope with the result of the Brexit referendum in terms of their identities. Our study identifies four distinctive reaction patterns among EU migrants depending on the degree to which they interpreted the Brexit vote as a threat to their identity, and the number of national affiliations they held. We refer to these as EU Patriots, Local Cosmopolitans, Home Country Patriots, and Global Citizens. Each of these distinctive reaction patterns involves different forms of identity work and agency in skilled migrant's professional and personal spheres. Our study provides insights into the way in which identity impacts migrants and expatriates, as well as to the interplay between contextual constraints and agency in the face of identity threats.
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    Female managers in professional service firms: Better networks, fewer benefits?
    (2018-10-20) ;
    Bertola, Lara
    While network research has shown that certain network structures are beneficial for career progression we also find that women benefit much less from such advantageous network positions. The aim of this work is to tease out some of the underlying dynamics of these observed patterns. In a first phase an ANOVA analysis was conducted comparing the variables of the network survey to reveal any differences in network structures between male and female professionals' networks. The identified differences were the departure point to then investigate the root causes of the featured differences through interviews on networking behaviours and the company context. This study contributes to revealing some of the micro-dynamics at play that impede female managers' progression in professional service firms.