TMT Behavioral Integration and Corporate Entrepreneurship:Moderating Role of Institutional Support

Abstract

While some research has revealed a positive relationship between corporate entrepreneurship and firm performance, relatively little has been done to explore the antecedents of corporate entrepreneurship, especially on the top level of a firm. From a perspective of upper echelons theory, this study investigates the effect of top management team behavioral integration on corporate entrepreneurship. Based on data from 522 high-tech firms in China, I found that higher degree of TMT behavioral integration can lead to higher corporate entrepreneurship. Moreover, the role of institutional support as a moderator in this relationship was also supported. When institutional support towards innovation is high, the relationship between TMT behavioral integration and corporate entrepreneurship is stronger. This paper contributes to upper echelons theory by enhancing the understanding of the influence of TMT behavior on firm innovation orientation. Moreover, it also extends entrepreneurship research by applying it to an emerging economy—China. The results have implications for managerial practice in shaping TMT process.