Top Management Team Effectiveness Research Articles

The impact of BIM-based integration management on megaproject performance in China

With the rapid development of the global economy, the investment boom in megaprojects worldwide has been on the rise in the past several decades. As large temporary contract organizations, megaprojects are generally confronted with performance dilemmas. The managerial advantage of building information modeling (BIM) has been recognized as one of the critical factors for the success of megaprojects. In particular, BIM-based integration management (BIM IM) signifies the logical and reasonable coordination and integration of the required processes during the whole life-cycle of projects, which facilitates the implementation and management of megaprojects. However, limited empirical research has explored effective pathways for BIM IM in improving megaproject performance (MP). Thus, this study establishes a novel conceptual framework to explore the impacts of BIM IM on MP through information sharing (IS) and cooperation behavior (CB), as well as considering the moderating effects of top management team (TMT) heterogeneity and task conflict (TC). The empirical data were collected in megaprojects in China using the questionnaire survey, and data from 206 middle-senior managers was analyzed by structural equation modeling partial least-squares method. The research findings reveal the effectiveness of BIM IM in promoting IS and CB in megaprojects for ultimate MP. More specifically, BIM IM has a larger effect on IS than CB, and CB has a more profound impact on MP than IS. Meanwhile, TMT heterogeneity plays a negative moderating effect on the relationship between IS and MP, while TC shows a positive moderating effect on the relationship between CB and MP. The findings of this study provide new perspectives and practical strategies for stakeholders to support the effective use of BIM IM to achieve strategic management in megaprojects worldwide.

Does top management team diversity affect accounting quality? Empirical evidence from Germany

Earnings management decisions and ineffective monitoring activities have contributed to financial accounting scandals and reduced confidence in firms’ reporting quality among potential investors, lenders and other creditors. The implementation of an effective top management team (TMT) is considered essential in this context. It is well known that top managers have considerable discretion over firms’ financial reporting since they choose whether and how to manage earnings. However, research has yet to establish the relationship between top managers’ diversity attributes and firms’ earnings management levels. Therefore, this study analyses whether and how top managers’ nationality, gender and age diversity are associated with accounting quality. Based on a sample of German DAX 30 listed firms from 2011 to 2018, we found that diversity in TMT nationality and gender have a positive impact on accounting quality. This relationship is context-dependent and negatively moderated by the tenure of the chief financial officer. Our findings provide novel insights on accounting quality for practitioners such as investors, regulators and stock corporations. The implications of this study further advance the academic debate on diversity in TMTs and its effects on earnings management.

Going Abroad and Going Green: The Effects of Top Management Teams' Overseas Experience on Green Innovation in the Digital Era.

Green innovation has become one of the most important approaches to achieving sustainable development in modern business. Top management team (TMT)'s overseas experience, as one type of unique resources, constitutes the cognitive basis of the team and thus influences firms' strategic decision-making. Based on the upper echelon theory, this study aims to investigate the effect of TMT's overseas experiences on green innovation performances. By utilizing a panel dataset of Chinese listed firms, this study shows that TMTs' overseas experience indeed promotes firms' green innovation performance and that both firms' digital transformation and regions' digital economy development positively moderate the relationship between TMTs' overseas experience and green innovation. These findings not only help managers better organize the TMT and green innovation strategy but also draw policymakers' attention to the importance of the digital economy and sustainable development.

Reporting on sustainable development: Configurational effects of top management team and corporate characteristics on environmental information disclosure

AbstractAlthough widely explored in many studies, how and why combined top management team (TMT) and corporate characteristics affect environmental information disclosures (EID) are still lacking clarity. This study uses both fuzzy‐set qualitative comparative analysis and necessary condition analysis to reconcile the inconclusive results concerning the configurational effects of these characteristics on EID and to validate the robustness. From a sample of listed construction engineering corporates during the 2014–2018 period, the high EID level is associated with several complex configurations that contain the core characteristics such as corporate ownership and size, whereas the low EID level is related to the configurations including TMT salary and corporate profitability. The findings support the four tenets of equifinality, asymmetry, complexity, and causal asymmetry in complexity theory. Our results capture the complex non‐linear effects of TMT and corporate characteristics and shed new light on environmental disclosure management for corporate sustainable development.

Mediation effect of product diversification on the relationship between top management team heterogeneity and firm value in China

PurposeBased on upper echelons (UE) theory, the purpose of this study is to investigate a conceptualized moderated mediation model for examining the effects of top management team (TMT) heterogeneity and firm value in China through the mediating effect of product diversification, the moderating effect of ownership type between TMT heterogeneity and product diversification and the moderating effect of executive shareholding between product diversification and firm value.Design/methodology/approachUnbalanced panel data were collected over 5 years with a total of 6,597 observations, organized through the WIND (Wind Economic Database) and CSMAR (China Stock Market and Accounting Research) Database. The hypotheses were tested using structural equation modeling and analyzed with stata15.0 software.FindingsThe results indicated that product diversification plays a mediating role between TMT heterogeneity and firm value. In China, TMT heterogeneity of non–state-owned enterprises plays a more significant role in promoting product diversification than that of state-owned enterprises; executive shareholding strengthens the relationship between product diversification and firm value.Research limitations/implicationsThe characteristic dimension of TMT is seen as a relatively static factor, and it is worth looking at whether a more dynamic system of evaluation and measurement can be established.Originality/valueThis study enriches theoretical research on TMT and contributes to UE theory in several ways. First, we studied the mediation effect of product diversification between TMT heterogeneity and firm value. This extends research on UE theory to possible process variables. Second, considering the influence of the unique institutional environment in China on corporate strategic decisions, the study investigates state-owned and non–state-owned enterprises. Specifically, it looks at the influence of ownership type as a moderating variable between TMT heterogeneity and product diversification. Third, the paper discusses the moderating effect of executive shareholding on the product diversification–firm value relationship. The research contributes to agency theory and expands research on different economic systems by implementing agency theory.

Organizational Commitment, Organizational Citizenship Behavior and Turnover Intention: The Moderating Role of Leadership Behavior

Organizational Commitment, Organizational Citizenship Behavior and Turnover Intention: The Moderating Role of Leadership Behavior

Top management team heterogeneity, corporate social responsibility and firm risk: an emerging country perspective

PurposeThis study aims to examine the effects of top management team (TMT) heterogeneity and corporate social responsibility (CSR) on the firm risk of Bursa Malaysia listed firms. Also, this study examines the moderating effect of CSR between TMT heterogeneity and firm risk.Design/methodology/approachThis study uses panel regression models to test the hypotheses. The sample of this study is Bursa Malaysia non-financial listed firms from 2013 to 2017 with 3,055 observations.FindingsThis study finds significant effects of TMT age and tenure heterogeneities on total risk. Effects on idiosyncratic risk are evident only within age heterogeneity. Further, this study finds negative effects of CSR on total and idiosyncratic risks. CSR significantly moderates the relationship between total TMT heterogeneity and firm systematic risk.Practical implicationsThis study reduces the literature gap by providing useful insights on the effects of CSR activities and TMT heterogeneity on firm risk. The findings can also provide hints to investors to assist them in assessing firm risk based on TMT heterogeneity and firms’ CSR. This study can also benefit shareholders in their attempts to mitigate the risk of their portfolio by investing in firms that are socially responsible as firms with high CSR suffer lower total and idiosyncratic risks.Originality/valuePrevious studies have emphasised on the influence of TMT characteristics and CSR on firm performance. However, studies that investigate the effects of TMT heterogeneity and CSR on firm risk are limited in the context of Malaysia.

Experience Teaches Slowly: Non‐linear Effects of Top Management Teams’ International Experience on Post‐acquisition Performance

AbstractExecutives’ international experience is commonly considered a critical asset for multinational companies. The underlying presumption is that individuals learn from international experience. We revisit this presumption and propose a conceptualization of learning from international experience that accounts for the process and challenges of such learning. We use this conceptualization to examine how the international experience of top management team (TMT) members affects firm performance following cross‐border acquisition decisions of these TMTs. Empirical analyses addressing potential endogeneity concerns show that high, but not low, levels of TMT international experience have a positive impact, and that these effects are moderated by TMT nationality diversity.

Social media strategic capability, organizational unlearning, and disruptive innovation of SMEs: The moderating roles of TMT heterogeneity and environmental dynamism

This paper provides an investigation into how social media can be used to promote disruptive innovation in small and medium enterprises (SMEs) from a capability perspective. Based on the strategic capability literature, this study examines the influence of social media strategic capability (SMSC) on disruptive innovation, the mediation role of organizational unlearning, and the moderating effects of top management team (TMT) heterogeneity and environmental dynamism. The empirical results from a sample of 198 Chinese manufacturing firms, each with paired respondents, show a significant association between SMSC and disruptive innovation, which is mediated by organizational unlearning. Furthermore, the effect of SMSC on unlearning is enhanced when SMEs have heterogeneous TMTs, and the influence of unlearning on disruptive innovation is strengthened in dynamic market and regulatory environments but weakened in dynamic technological environments. These findings contribute new knowledge to the literature on both social media and disruptive innovation.

Promoting business model innovation through social media strategic capability: A moderated mediation model

The rapid development of social media has significantly affected organizational innovation activities. However, scant research has investigated how social media, as an important innovative tool within the corporate landscape, influences firm business model innovation (BMI). This paper provides an initial investigation into whether, and how, social media can be used to promote firm BMI. Drawing on the strategic capability literature, the study examines the relationship between social media strategic capability (SMSC) and BMI by focusing on the mediating role of strategic flexibility and the moderating effects of top management team (TMT) heterogeneity and environmental dynamism. Empirical results from a sample of 283 Chinese firms with two key informants each show a significant and positive association between SMSC and BMI, which is mediated by strategic flexibility. In addition, moderated path analyses indicate that TMT heterogeneity positively moderates the SMSC–strategic flexibility path, while environmental dynamism positively moderates the strategic flexibility–BMI path in the mediated relationship. Theoretical and practical implications of this study for both social media and BMI research are discussed.

Can R&D internationalization improve EMNES' innovation efficiency? The moderating effects of TMT human capital

PurposeThe authors aim to discuss the impact of research and development (R&D) internationalization on emerging market enterprises' (EMNEs') innovation efficiency, as well as the moderating effects of top management team (TMT) human capital.Design/methodology/approachThe authors empirically tested the hypotheses based on Chinese listed manufacturing company data from 2008 to 2017.FindingsR&D internationalization helps to increase EMNEs' innovation efficiency. Incorporating TMT human capital into this framework, the authors found that international experience, education level and technical background would all strengthen the above relationship.Originality/valueFirst, the authors contribute to the R&D internationalization literature by providing the first empirical evidence that R&D internationalization will influence EMNEs' innovation efficiency. Second, this study enriches the research results on the driving factors of enterprise innovation efficiency and expands the related research results on the relationship between R&D internationalization and production efficiency. Third, the research highlights the prominent position of TMT human capital in the relationship between R&D internationalization and EMNEs' innovation efficiency, which strengthens the contextual characteristics of the “R&D internationalization-innovation performance” framework.

The Effects of Top Management Team Heterogeneity and Shared Vision on Entrepreneurial Bricolage in New Ventures: An Attention-Based View

Drawing on the attention-based view, this article examines the effects of top management team (TMT) heterogeneity and shared vision on entrepreneurial bricolage in new ventures, and how the effects are contingent on competitive intensity. It finds that TMT heterogeneity has a positive impact on entrepreneurial bricolage, but the impact is weakened by competitive intensity; TMT shared vision has a positive effect on entrepreneurial bricolage, and this effect does not vary with competitive intensity. This article lays a threshold over which to link TMTs to entrepreneurial bricolage and, thus, enriches our knowledge on the antecedents of entrepreneurial bricolage. Moreover, it offers novel insights into how TMTs matter on the enactment of bricolage, advancing the understanding of the implications of TMT attributes.

Top Management Teams’ Academic Experience and Firms’ Corporate Social Responsibility Voluntary Disclosure

ABSTRACTCorporate social responsibility (CSR) disclosure is becoming increasingly important for modern corporations. Focusing on voluntary CSR disclosure and drawing on upper echelons theory, we propose that voluntary CSR disclosure is the manifestation of managerial preferences (e.g., managers’ professional ethical values and standards). Specifically, we argue that top executives with an academic background tend to have higher professional and ethical standards than their non-academic counterparts. These standards lead them to act with self-restraint and to perceive CSR disclosure as an opportunity rather than a threat. Compared with non-academic executives, therefore, top executives with an academic background provide stakeholders with more CSR information. Based on a sample of publicly listed firms in China, we find a significant difference in voluntary CSR disclosure between firms led by academic executives and firms without academic top executives. This difference is smaller for firms that are state-owned, firms that are audited by large audit firms, and firms with greater analyst coverage. We contribute to the literature on CSR voluntary disclosure by providing an in-depth analysis of the effects of top management teams’ academic backgrounds.

Top Management Team Diversity and Corporate Social Performance in Multinational Enterprises

This study investigates the effects of top management team (TMT) diversity and international experience on corporate social performance (CSP). As hypothesized, we find that TMT national diversity a...

Developing Effective Top Management Team at Vietnamese SMEs

Developing Effective Top Management Team at Vietnamese SMEs

Human capital in top management teams seen through the lens of senior human resources managers

PurposeDespite the strong influence of Hambrick and Mason’s (1984) seminal work, the effects of top management team (TMT) characteristics on strategic processes remain unclear. This study aims to go beyond the traditional upper echelon theory and to propose a human capital taxonomy of TMTs from the perspective of top human resources managers.Design/methodology/approachThe research integrates arguments from the strategic human capital and strategic issue diagnosis literatures. An exploratory cluster analysis was conducted in an attempt to describe different human capital typologies in TMTs in a sample of 120 Spanish companies.FindingsThe exploratory analysis showed three distinct human capital profiles: “technocratic teams”, “highly skilled teams” and “operational teams”. In addition, this paper provides preliminary results about the effects of each profile in the above taxonomy on strategic issue diagnostic processes, suggesting that “highly skilled teams” present the most appropriate combination of human capital attributes.Practical/implicationsThis analysis provides a guide for top managers regarding the human capital needs they may face when interpreting strategic issues in strategy formation processes.Originality/valueThis paper makes a twofold contribution to the extant literature: proposing an analysis of TMTs’ human capital from a synergistic perspective (“human capital profiles”) instead of using the traditional “more is better” approach and providing preliminary explanations about how those human capital combinations contribute to success in the strategic issue diagnosis process.

Top Management Team Impact on Servitization: Does the TMT Experience Make a Difference?

Although servitization has considered as a strategic renewal, current research provides us very few answers how top management team (TMT) experience may enhance the firm’s degree of servitization. Building on upper echelons, strategic renewal and servitization research, this study aims to contribute to an increased understanding of the role of TMT experience in the firm’s servitization journey. We argue that an increasing focus on services goes along with substantial risks and requires the development of new organizational capabilities. As such, we argue that TMT characteristics affect strategic choices towards service-centric business models. Using data of 212 TMTs in 139 German energy utilities, we hypothesize and find evidence for positive effects of outside hires and short-tenured TMTs on the firm’s degree of servitization. For this purpose, we develop and provide future research with a novel measurement for the firm’s degree of servitization. We empirically demonstrate that TMT experience beyond the focal industry has neither a positive nor a negative effect per se on the firm’s degree of servitization, and argue that positive and negative consequences of TMT cross-industry experience may compensate each other. In proposing new research directions, we underscore the relevance of integrating determinants of managerial cognition and behaviour into servitization theorizing.

How does TMT transactive memory system drive innovation ambidexterity?

PurposeAlthough prior studies have found that transactive memory system (TMS) in top management team (TMT) can enable innovation ambidexterity, works that focus on only the direct role of TMS and neglect the question of how the differentiated knowledge of the TMS are integrated. The purpose of this paper is to further elucidate how a TMS promotes ambidexterity and examine both its mechanism process and the conditions influencing the process.Design/methodology/approachThis study is based on a questionnaire survey of 94 high-tech enterprises in China.FindingsThe findings show that the positive relationship between TMS usage and innovation ambidexterity is mediated by TMT shared leadership, which refers to collective decision-making behaviors and can integrate the heterogeneous knowledge of the TMS into coherent strategic forms. The authors also found that having a TMS was more positively related to innovation ambidexterity via shared leadership when top managers have high team learning goal orientation or high team performance approach goal orientation.Originality/valueThis research contributes to the literature on the antecedents of innovation ambidexterity by showing the effects of TMS and TMT shared leadership, responding to the call to explore how TMT cognitive structures interact with behavioral processes to shape ambidexterity. This study also contributes to TMS research by taking team goal orientations into consideration, which promotes understanding of the effectiveness of TMS in an achievement context. In addition, the authors bring distributed cognition to the fore as a novel fuel for understanding how shared leadership forms.

Gender Heterogeneity in TMTs and Boards of Directors

Given the lack of evidence that women in leadership positions shape strategic decision- making, we explore whether the joint effects of top management team (TMT) gender heterogeneity with board of ...

Unpacking Charismatic Leadership of Top Management Teams: A Cross-Level Investigation

Do charismatic leadership behaviors of the top management team matter? While such behaviors of the CEO have been found to relate to a variety of positive performance- related outcomes at the firm and individual levels, the leadership literature remains largely silent about the transferability of the charismatic leadership concept to top management teams. According to the upper echelon theory, however, the top management team (TMT) is instrumental in shaping performance outcomes. This makes studies on TMTs and their way of leading organizations particularly relevant. Therefore, this study aims to unpack the effects of TMTs’ charismatic leadership behaviors. Drawing on cross-level data from 274 employees working in 59 organizations, we found that charismatic leadership behaviors of TMTs positively predict their employees’ affective commitment. Moreover, this cross- level relationship is revealed to be jointly moderated by the employees’ frequency of interactions with their TMT and their organization’s ethical climate (i.e., profit versus caring climate). Thus, this study demonstrates the concept of charismatic leadership effectively applied in TMTs, offering important implications for scholars and practitioners.