Under what conditions would it be more appropriate to fill a key management position with someone from outside the firm when a qualified insider is available?

Answer 1

The only condition I can think of is if the top management wanted to "clean house" and get rid of some of the employees.

Answer 2

I could not find a reason of why one should hire from the outside.

Answer 3

I gave you a reason for hiring from the outside. An outside person is usually more effective in firing employees.