Do ties break from the changing of the guard? Executive mobility and the market ties of firms

Joseph P. Broschak, Alison Davis-Blake

Research output: Contribution to conferencePaperpeer-review

1 Scopus citations

Abstract

We test the proposition that the mobility of top managers in advertisers and advertising agencies weakens client-agency relationships. Social embeddedness theory suggests that if client-agency relationships are embedded in top managers' social relations then the exit of top managers should increase the likelihood of their dissolution. However, previous research on advertising agencies has failed to find empirical support for this prediction, casting doubt on social embeddedness arguments. We investigate executive mobility and market tie dissolutions in samples of advertisers and advertising agencies and find support for social embeddedness but not always in the ways predicted by previous research. For advertisers, the dissolution of market ties depends not on the exit of executives but by how executive vacancies are filled. For advertisers, the exit of incumbents and internal succession weaken market ties, but these effects depend on the size and strategy of advertising agencies. We discuss the implications of these findings for social embeddedness theory and research on market ties and executive mobility.

Original languageEnglish (US)
DOIs
StatePublished - 2006
Externally publishedYes
Event66th Annual Meeting of the Academy of Management, AOM 2006 - Atlanta, GA, United States
Duration: Aug 11 2006Aug 16 2006

Conference

Conference66th Annual Meeting of the Academy of Management, AOM 2006
CountryUnited States
CityAtlanta, GA
Period8/11/068/16/06

Keywords

  • Market ties
  • Mobility
  • Social embeddedness

ASJC Scopus subject areas

  • Management Information Systems
  • Management of Technology and Innovation

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