Research Talk: Dr. Stevo Pavicevic
Dr. Stevo Pavicevic will talk about his recent research on Behavioural Strategy
We are looking forward to having Dr. Stevo Pavićević visiting the IOD!
He is Assistant Professor of Strategy at the Frankfurt School of Finance & Management. He holds a PhD in Strategy from the University of Zurich. Stevo’s main research interest is in behavioural strategy, with a particular focus on how boards of directors and top executives make strategic decisions in the context of acquisitions, strategic alliances, and corporate innovation. His research has published in leading journals such as Academy of Management Journal, Strategic Management Journal, Strategy Science, and Journal of Management.
Topic: It Takes Two to Tango: A Dyadic Interactionist Perspective on CEO Turnover in Acquisitions
Abstract: We develop a dyadic interactionist perspective that focuses on the central role of executive dyads in the social context of the upper echelons, and explains that personalities of both parties in executive dyads mutually and reciprocally evoke interpersonal perceptions and behaviors to influence having a sense of mutual complementarity or interpersonal disintegration, which for executive dyads often translates into executive turnover. We focus on dyads between CEOs whose firms were acquired and their acquiring CEOs. Specifically, we argue that levels of extraversion of both CEOs interact in predicting target CEO turnover: less extraverted target CEOs are less likely to leave regardless of whether their acquiring CEOs are more or less extravert, while more extraverted target CEOs are more likely to leave particularly when their acquiring CEOs are less extravert. We find support for this dyadic interactionist effect and find that it is stronger when the CEOs have more power, are proximate to one another, and when acquisition negotiations take more time to complete. This study underlines the role of executive dyads in the upper echelons, and sheds new light on executive personality and on ways in which interpersonal dynamics shape executive turnover – an important outcome of the acquisition process.
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