How do TMT shared cognitions shape firm performance? The roles of collective efficacy, trust, and competitive aggressiveness

Abstract

This study examines the role of competitive aggressiveness in the relationship between top management team (TMT) collective efficacy and firm performance under the contextual influence of TMT trust. Based on a sample obtained from 376 top executives in 147 firms in Taiwan, we find that competitive aggressiveness is a key mediator in converting TMT collective efficacy into advantageous performance. Moderated-mediation analyses further show that the mediating effect of competitive aggressiveness is more prominent under lower level of TMT trust, a finding that is contrary with our prediction. Our research contributes to the upper echelons and competitive dynamics theories by identifying the interplay of TMT shared cognitions and socio-behavioral processes as critical drivers of firm initiatives and outcomes in the rivalrous contexts.