A Review of the Relationship between TMT Shared Cognition and Strategic Decision Making

Abstract

As the main strategic decision makers, the top management team plays an important role in the development of the enterprise. High echelon theory provides a theoretical basis for the research of top management team. The original idea of the top management team is cognitive orientation, but the previous researches focus on the demographic characteristics and Heterogeneity of individual team members, ignore the social characteristics of the top management team as a team. At the same time, the results are unstable and contradictory. Furthermore, the cognitive process of top management team has always been a difficult problem in the academic circles, but has not found an effective way. Based on the upper echelons theory and shared mental model, this paper analyses systematically and summarizes the relevant research literatures, and reviews the domestic research literatures about the influence mechanism of TMT on strategic decision making, then proposes the suggestions that develop the Chinese context research and related western theories. In conclusion, the research results have great value to promote domestic scholars getting involved in this frontier research field, then keep up with the pace of international related theories development.