CEO dismissal, institutional development, and environmental dynamism

CEO dismissal is one of the most theoretically interesting topics in strategic management. From a critical realistic perspective, we identify the core assumptions underlying perspectives on CEO dismissal and specify the contexts in which these assumptions are likely to be realistic. We then classify these contexts into four scenarios based on high and low levels of institutional development and environmental dynamism and develop an integrative theoretical framework of CEO dismissal. Our framework posits that institutional development and environmental dynamism interact to determine the antecedents of CEO dismissal and who will be selected as the new CEO, as well as the performance consequences of CEO succession.