Managerial power and succession: SBU managers of mutual funds

This study applies the performance-power-succession model to the analysis o f the antecedents of succession among SBU managers. We hypothesize that six sociopolitical factors unique to the SBU manager role will have major effe cts on succession and will also moderate the performance-succession relatio nship. Data gathered on portfolio managers of open-ended mutual funds shows the main effects of tenure, portion of revenues controlled, managerial exi ts and entries, and leverage on succession, but reveals no support for mark et share. Mediating effects were found for tenure, portion of revenues cont rolled, market share, leverage, and managerial exits, but not for manageria l entries. We discuss the implications of these findings for extending the literature on executive succession to include SBU managers.