Abstract
Top Management Teams (TMT) cognition play a strategic role in the decision making process in any firm. It is critical for firms to integrate managerial strategic thinking, which is rooted in managerial cognition, into the strategic process. Hence TMT cognition can be seen to be a key intangible resource of the firm. The speed and efficiency of the firm’s response to the rapidly changing environment is vital to firm performance. Firm’s can integrate corporate entrepreneurship as a corporate strategy to achieve competitiveness in the market. This paper presents a review of extant theoretical and empirical literature on two constructs, TMT cognition and first mover advantages and their link to firm entrepreneurial performance. Relevant theories have been reviewed, constructs and operational indicators have also been identified, comparison against empirical studies and the emergent knowledge gap is identified. This paper proposes a theoretical model for guiding future scholarship in strategic management.
Highlights
Strategy is a process that is found at the organisation level, which includes activities that firms engage in in order to formulate and enact the strategic missions and goals ( (Li, Zhang, & Chan, 2005) which involve analysing, planning, decision making and strategy implementation (Hart,1992)
The Upper Echelon Theory (UET) argues that the demographic characteristics and background of top management team members have an influence on the strategic decisions of the organisations, which have a direct impact on the performance and value creation in the organisation (Hambrick & Mason1984)
The purpose of this paper was to review the extant literature on the construct of Top Management Teams (TMT) cognition, First Mover Advantage and enterpreneural performance
Summary
Strategy is a process that is found at the organisation level, which includes activities that firms engage in in order to formulate and enact the strategic missions and goals ( (Li, Zhang, & Chan, 2005) which involve analysing, planning, decision making and strategy implementation (Hart,1992). The construct of Top Management Teams (TMT) has been found to determine the speed, efficiency and effectiveness in the decision making process in organisations in a way that can influence firm performance. The role of the TMT in this process has been associated with the nature of strategic management process that requires decision makers to analyse both the internal and external environment so as to bring out the set of opportunities and threats and identify the firms internal preparedness through resource capabilities. Companies can exploit the competitive advantages they own currently, while they at the same time make decisions to shape the advantages they have intentions to possess in future, increase probability of long-term survival, growth and financial success (Kuratko, Ireland, & Hornsby, 2001) When firms base their entrepreneurial action on their strategy, that firm is said to have a corporate entrepreneurship strategy. This alters the firm’s culture, infusing entrepreneurial spirit in their operations
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