Intraindustry executive succession, competitive dynamics, and firm performance: through the knowledge transfer lens.

The model introduced above provides practitioners with a set of parameters that may be useful in the executive recruitment process. Those responsible for identifying and attracting executives to an organization (e.g., boards of directors and more senior executives) should consider the potential effect of intraindustry succession on competitive strategy and long-term performance, and adjust their search and selection process accordingly. The implication is that firms seeking to rapidly copy rivals' competitive actions would need to engage in an executive search that would identify and attract managerial talent from rivals with a certain background (e.g., with longer organizational tenure or greater seniority). Alternatively, if, as is perhaps more often the case, the firm's strategic imperative is to distinguish itself from rivals, boards and more senior executives involved in the executive search process might want to consider in advance the political dynamics that might develop subsequent to bringing in an intraindustry successor. The latitude for action granted to the new executive relative to the incumbent management team might bear directly on the way their expertise is used, as well as nature of any competitive responses.

In conclusion, as the quotes in the introductory paragraphs indicate, firms operating in technologically intense, rapidly changing environments might be strongly tempted to avail themselves of intraindustry succession in order to remain competitive with rivals. However, such firms would be well advised to avoid viewing new executives simply as a commodity that carries highly specialized, technically relevant knowledge. The commoditization of human resources in this way may be a self-defeating tactic if it leads to the homogenization of a firm's core product or services. In other words, the complexity of human resources and interpersonal relations must be considered. In order to absorb new knowledge, innovate, and secure a competitive advantage through intraindustry succession, organizations must consider the attributes of the new executive, and effectively manage the way they are integrated into the organization.

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