Top management team behavioral integration, decision quality, and organizational decline

Abstract

Little research on top management teams (TMTs) has sought to understand how group processes may influence organizational outcomes. This study examined the role of TMT behavioral integration in explaining the quality of strategic decisions and how these constructs together influenced organizational decline. Findings from survey data of 116 TMTs and a follow up case study show that TMTs in which members reported higher behavioral integration made better quality strategic decisions. Behavioral integration of TMTs was negatively related to organizational decline both directly and indirectly through the perceived quality of strategic decisions. We discuss implications for more fully utilizing the capabilities of TMTs to confront organizational threats.