CEO Turnover and Openness of Decision-making Processes in the Post-succession Phase: Exploring a Threat-rigidity Perspective

This study examines how top leader turnover in the public sector affects organizational strategic decision-making processes in the post-succession phase. Survey responses of managers were combined with a novel database on CEO turnover in the U.S. Federal Government. Drawing on threat-rigidity theory, we hypothesize that as CEO turnover is perceived as a threatening event for both managers and CEOs themselves, organizations as a whole respond by becoming more rigid, centralizing strategic decision-making and restricting the flow of information. This has knock-on effects on the quality of strategic decisions and their implementation, with detrimental effects on the delivery of public services.