PERCEIVED LEGITIMACY OF INSIDER VS. OUTSIDER SUCCESSORS AND ITS IMPACT ON ORGANIZATIONAL PERFORMANCE IN THE ACCRA METROPOLIS
DOI:
https://doi.org/10.29121/ijetmr.v12.i1.2025.1522Keywords:
Succession Planning, Perceived Legitimacy, Insider Successors, Outsider Successors, Organizational Performance, Upper Echelons Theory, Leadership TransitionsAbstract
Succession planning is a critical process for ensuring organizational continuity and performance, with the selection of insider or outsider successors playing a pivotal role. This study examines the perceived legitimacy of insider versus outsider successors and their impact on organizational performance within the Accra metropolis. Using the upper echelons theory as a framework, the study employed a quantitative research design with a sample size of 300 participants, comprising employees and stakeholders from organizations that had undergone leadership transitions within the last three years. Data were analyzed using descriptive and inferential statistical techniques, including correlation and regression analyses. The findings revealed a strong positive relationship between perceived legitimacy and organizational performance, with perceived legitimacy accounting for 90.9% of the variance in performance outcomes. Insider successors were viewed as fostering continuity and alignment with organizational culture, while outsider successors were associated with innovation and strategic change. These results highlight the importance of transparent and credible selection processes in leadership transitions. The study underscores the relevance of the upper echelons theory in understanding leadership dynamics and provides practical recommendations for improving organizational outcomes through effective succession planning.
Downloads
References
Connelly, B. L., Shi, W., Walker, H. J., & Hersel, M. C. (2022). Searching for a sign: CEO Successor Selection in the Wake of Corporate Misconduct. Journal of Management, 48(4), 1035-1066. https://doi.org/10.1177/0149206320924119
Gabriel, P. I., Biriowu, C. S., & Dagogo, E. L.-J. (2020). Examining Succession and Replacement Planning in Work Organizations. European Journal of Business and Management Research, 5(2). https://doi.org/10.24018/ejbmr.2020.5.2.192
Georgakakis, D., & Buyl, T. (2020). Guardians of the Previous Regime: Post-CEO Succession Factional Subgroups and Firm Performance. Long Range Planning, 53(3), 101971. https://doi.org/10.1016/j.lrp.2020.101971
Giambatista, R. C. (2004). Jumping Through Hoops: A Longitudinal Study of Leader Life Cycles in the NBA. The Leadership Quarterly, 15(5), 607-624. https://doi.org/10.1016/j.leaqua.2004.07.002
Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The Organization as a Reflection of its Top Managers. Academy of Management Review, 9(2), 193-206. https://doi.org/10.2307/258434
Janani, S., Christopher, R. M., Nikolov, A. N., & Wiles, M. A. (2022). Marketing Experience of CEOs and Corporate Social Performance. Journal of the Academy of Marketing Science, 50(3), 460-481. https://doi.org/10.1007/s11747-021-00824-9
Karaevli, A. (2007). Performance Consequences of new CEO 'Outsiderness': Moderating Effects of Pre‐and Post‐Succession Contexts. Strategic Management Journal, 28(7), 681-706. https://doi.org/10.1002/smj.589
Kim, C., Park, J.-H., Kim, J., & Lee, Y. (2022). The Shadow of a Departing CEO: Outsider Succession and Strategic Change in a Business Group. Asia Pacific Business Review, 28(1), 65-86. https://doi.org/10.1080/13602381.2021.1968655
Kim, Y., Jeong, S. S., Yiu, D. W., & Moon, J. (2021). Frequent CEO Turnover and Firm Performance: the Resilience Effect of Workforce Diversity. Journal of Business Ethics, 173, 185-203. https://doi.org/10.1007/s10551-020-04534-0
Leker, J., & Salomo, S. (2000). CEO Turnover and Corporate Performance. Scandinavian Journal of Management, 16(3), 287-303. https://doi.org/10.1016/S0956-5221(99)00023-8
Liu, X., & Atinc, G. (2021). CEO Selection, Reference Setting, and Postsuccession Strategic Change. Management Decision, 59(2), 258-284. https://doi.org/10.1108/MD-11-2018-1299
Ma, S., Kor, Y. Y., & Seidl, D. (2022). Top Management Team Role Structure: A Vantage Point for Advancing Upper Echelons Research. Strategic Management Journal, 43(8), O1-O28. https://doi.org/10.1002/smj.3368
Marshall, J. D., Aguinis, H., & Beltran, J. R. (2024). Theories of Performance: A Review and Integration. Academy of Management Annals, ja, annals-2022. https://doi.org/10.5465/annals.2022.0049
Neely Jr, B. H., Lovelace, J. B., Cowen, A. P., & Hiller, N. J. (2020). Metacritiques of Upper Echelons Theory: Verdicts and Recommendations for Future Research. Journal of Management, 46(6), 1029-1062. https://doi.org/10.1177/0149206320908640
Siambi, J. K. (2022). Leadership Succession Planning and Organization Transition: A Review of Literature. International Journal of Managerial Studies and Research, 10(3), 16-30. https://doi.org/10.20431/2349-0349.1003003
Turner, K., Adwokat, D. M., & Prescott, R. K. (2022). Recruiting a Successor from Inside, Outside, or Utilizing Other Options for the Organization. In Succession Planning for Small and Family Businesses (pp. 47-72). Productivity Press. https://doi.org/10.4324/9781003281054-5
Wang, G., Holmes Jr, R. M., Oh, I., & Zhu, W. (2016). Do CEOs Matter to Firm Strategic Actions and Firm Performance? A Meta‐Analytic Investigation Based on Upper Echelons Theory. Personnel Psychology, 69(4), 775-862. https://doi.org/10.1111/peps.12140
Whitler, K. A., Lee, B., Krause, R., & Morgan, N. A. (2021). Upper Echelons Research in Marketing. Journal of the Academy of Marketing Science, 49, 198-219. https://doi.org/10.1007/s11747-020-00724-4
Yamak, S., Nielsen, S., & Escribá-Esteve, A. (2014). The Role of External Environment in Upper Echelons theory: A Review of Existing Literature and Future Research Directions. Group & Organization Management, 39(1), 69-109. https://doi.org/10.1177/1059601113511663
Yeh, Y.-H., & Liao, C.-C. (2021). Are Non-Family Successors all the Same? Inside-Promoted vs. Outside-Sourced. Journal of Corporate Finance, 71, 102122. https://doi.org/10.1016/j.jcorpfin.2021.102122
Zhu, Q., Hu, S., & Shen, W. (2020). Why do Some Insider CEOs Make More Strategic Changes than Others? The Impact of Prior Board Experience on New CEO Insiderness. Strategic Management Journal, 41(10), 1933-1951. https://doi.org/10.1002/smj.3183
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Abdul Jalil Mahama Alhassan Iddrisu Zaapayim

This work is licensed under a Creative Commons Attribution 4.0 International License.
License and Copyright Agreement
In submitting the manuscript to the journal, the authors certify that:
- They are authorized by their co-authors to enter into these arrangements.
- The work described has not been formally published before, except in the form of an abstract or as part of a published lecture, review, thesis, or overlay journal.
- That it is not under consideration for publication elsewhere.
- That its release has been approved by all the author(s) and by the responsible authorities – tacitly or explicitly – of the institutes where the work has been carried out.
- They secure the right to reproduce any material that has already been published or copyrighted elsewhere.
- They agree to the following license and copyright agreement.
Copyright
Authors who publish with International Journal of Engineering Technologies and Management Research agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or edit it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
For More info, please visit CopyRight Section