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CEO Career Variety: Effects on Firm-level Strategic and Social Novelty

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The Academy of Management Journal

Published online on

Abstract

We introduce the concept of CEO career variety - defined as the array of distinct professional and institutional experiences an executive has had prior to becoming CEO. Using a longitudinal sample of Fortune 250 CEOs, we hypothesize, and find strong evidence, that CEO career variety is positively associated with firm-level strategic novelty - manifested in strategic dynamism (period-on-period change) and strategic distinctiveness (deviance from industry central tendencies). We also find mixed evidence that CEO career variety is positively associated with social novelty - manifested in top management team turnover and heterogeneity.