The impact of TMT heterogeneity on Large Firms' Entrepreneurial Orientation – A Double-edge Sword?

Abstract

This study investigates the effects of different types of heterogeneity within the top management team (TMT) on large firms’ entrepreneurial orientation (EO), particularly in environments characterized by competitive intensity. Drawing on the upper echelons perspective and organizational conflict literature, we hypothesize that relations heterogeneity within the TMT is negatively associated with EO, while task heterogeneity within the TMT positively relates to EO and that high levels of competitive intensity strengthen these relationships. Our results, based on panel data for 318 firms over 9 years, support our hypothesis of a negative association between relations heterogeneity and EO as well as a positive relationship between task heterogeneity and EO. While competitive environments strengthen the negative relationship between relations heterogeneity and EO, we do not find support for such an interaction effect with task heterogeneity. We contribute to management research by advancing the understanding ...