A visit from a colleague from Loughborough University London, Dr Anna Grosman
During her five-day visit she had held several meetings with the colleagues from different departments including the departments of economics, finance, and management.
In collaboration with the director of the Health Centre, Ekaterina Aleksandrova, Dr Grosman had also given a presentation at the School of Economics and Management seminar on June 13 on
The Effects of CEO change under conditions of complexity
Anna Grosman (Loughborough University)
Tomasz Mickiewicz (Aston University)
Xiahui Liu (University of Birmingham),
Ekaterina Aleksandrova (Higher School of Economics)
Abstract. We investigate why sometimes the new CEO brings a positive effect to the firm, and sometimes the short-term effect is negative. We posit that while both effects are present simultaneously, which one will dominate is contingent on complexity. We see the latter as an overarching heuristic concept that helps us to reconcile the phenomena that have not been integrated into one theory before. We argue that CEO change is unlikely to be positive in the short run and under conditions of complexity, precisely organizational complexity (related to larger firms or part of business groups), relational complexity (associated with firms with state or foreign ownership), or environmental complexity (for firms in high-tech industries or engaging in international trading). We stress bounded rationality and cognitive limitations.