Top Management Team Composition Research Articles

Board versus TMT international experience: a study of their joint effects

PurposeThe purpose of this paper is to test the relationship between board and top management team (TMT) members' international experience and CEO multinationality, with their firm's degree of internationalization. Through the lenses of upper echelon theory, on a sample of 108 European and US firms, the author tests the variables “international experience” and “CEO multinationality”, at the board and at the TMT levels.Design/methodology/approachA longitudinal research design is used to examine director's individual attributes in 2001 and firm's degree of internationalization in 2003‐2008. The sample comprised directors of the 108 largest European and US service and industrial firms by market capitalization, as listed in the Financial Times (FT) Global index of 2007.FindingsA positive effect is found on internationalization for international experience of both boards and TMTs; also a positive relationship is found between CEO multinationality of TMTs and internationalization.Research limitations/implicationsIt is acknowledged that the use of a diversified set of large US and European public firms could add unnecessary variance due to the different contexts involved in a sample of just 108 firms. Most of the sampled firms are already international so the study does not argue for board and TMT composition as a triggering mechanism for firm internationalization but, instead, as a tool that can enhance an international expansion process. The fact that international experience is a binary variable also limits the validity of the results. Either a direct survey of directors or a continuous variable that measures the amount in years of international experience would have yielded richer data. Data availability constraints limited the scope of this variable. The chosen operationalization just measures the presence and not the depth of executive's international experience. Additionally, it is acknowledge that just eliminating supervisory board members that represent unions/workers does not completely homogenize boards from the different countries in the sample.Practical implicationsPractitioners could use these findings to improve their selection and training processes of both top managers and board members.Originality/valueThe paper extends upper echelons theory to the board of directors. The comparison of boards and TMTs will facilitate the differentiation of corporate elites. It also introduces a new study variable: CEO multinationality and finally, it uses a mixed geographical sample of large European and US firms.

Who Changes Course? The Role of Domain Knowledge and Novel Framing in Making Technology Changes

The foundations of established firms are laid when, early in life, venture executives explore dynamic landscapes in search of opportunities. During this search, the executive team processes information that might signal the need to change, and their cognitive flexibility in processing this information affects the likelihood of such changes. While executive backgrounds affect this information processing, current literature does not identify how executive backgrounds impact the extent of change a firm undertakes. Therefore, we compare the effects of teams dominated by domain insiders, domain outsiders, and complementary teams (blending insiders and outsiders) on the likelihood of different degrees of technology change. In an examination of the population ofU.S. solar photovoltaic manufacturing ventures from 1992 to 2007, we find that teams with extra‐domain expertise, particularly at theCEOlevel, undertake more significant technology change. By contrast, intra‐domain expertise has an inertial effect on change: even when combined in complementary team configurations, domain expertise reduces chances of significant technology change. These findings expand the discussion of types and antecedents of organization change, top management team composition, and the psychological foundations of strategy. Copyright © 2012 Strategic Management Society.

The Influence of Top Management Team Composition On Company Performance The Case of Indonesian Mining Companies

Top management team composition is a big issue in international business and management research. In Indonesian context, especially for mining companies, the issue has only limited academic resource. Since most studies in this area conducted in the United States and Europe, the studies are refecting the culture of the underlying US and Europe population. This research using a sample from 18 Indonesian Mining Companies with 174 top executives from those companies. This study utilizes a deductive method of research as a methodological approach. Each hypothesis analyzes the infuence of the composition of the Top Management Team (Independent Variable) on company performance (Dependent Variable), with the relationship made by creating a direct hypothesis of Top Management Team with the value of the return of assets (ROA) and return of equity (ROE) of each company

TMT dispositional composition and firm performance: the mediating role of competitive actions

We examine the relationships between top management team (TMT) composition (mean and diversity) of optimism, competitive behaviors (action speed and action complexity), and firm performance based on a sample of 463 TMT members in 119 firms from 13 industries. Our results suggest that TMT mean optimism influences firm performance through competitive action speed and this relationship is moderated by TMT optimism diversity, whereas TMT optimism diversity influences firm performance through competitive action complexity. Our study highlights the importance of TMT optimism in understanding competitive behaviors and suggests the differential effects of TMT mean and diversity in optimism on competitive actions and firm performance.

The Structural Origins of Interdependence in TMTs:When Does Executive Group Composition Matter?

Researchers have devoted considerable effort in examining the effects of top management team (TMT) composition on group processes and organizational outcomes. Unfortunately, findings have been mixe...

Accelerating and braking in times of economic crisis

PurposeThe purpose of this article is to present the results of a study of an industrial company's top management team (TMT) that fought to survive an economic crisis. Specifically, the article seeks to focus on describing the TMT's composition, group processes, and work during a period of high external pressure; analysing the TMT's work in terms of an organisational learning process; and discussing factors that may have enabled the TMT to make appropriate strategic decisions during the crisis.Design/methodology/approachThe empirical foundation of this article is a longitudinal case study of a Swedish industrial company during the economic recession of the late 2000s. Data were collected through observations of meetings involving the TMT from 2009 to 2011 and through semi‐structured interviews with TMT managers.FindingsTwo empirical themes – “accelerating” and “braking” – illustrate actions taken by the TMT during the crisis. Accelerating involves activities aimed at accelerating the company out of the downturn, whereas braking involves activities aimed at reducing costs. The findings suggest that the TMT exhibited the ability to handle processes of exploration and exploitation during the crisis and that learning occurred at the individual, group, and organisational levels.Practical implicationsA practical implication of this study is the importance for TMTs to work simultaneously with processes of exploration and exploitation when fighting to survive an economic crisis and to designate time for learning processes in daily work.Originality/valueThe study contributes to the field by empirically showing the processes of organisational learning in practice and by highlighting the relevance of organisational learning research to understanding the performance and work of top management teams in organisations.

Functional Top Management Team Members

Functional top management team (TMT) members, defined as senior executives in the TMT responsible for one or more functional areas in their organizations, have received increased attention from scholars from different fields over the past few years. The purpose of this article is to review the disconnected research on various functional TMT members; to identify the variables of interest, the dominant relationships, and the contributions; and to organize the existing knowledge into a framework. On the basis of a synthesis of the literature, the author discusses the shortcomings and gaps and presents an agenda for future research that contributes to our understanding of functional TMT members and, thus, of TMT structure and composition.

The Relationship Between Knowledge Transfer, Top Management Team Composition, and Performance: The Case of Science–Based Entrepreneurial Firms

The increased pressure put on public research institutes to commercialize their research results has given rise to an increased academic interest in technology transfer. We assess under which conditions tacit knowledge transfer contributes to the performance of academic spin–offs. Using an inductive case study approach, our evidence suggests that tacit knowledge is most effectively transferred when a substantial part of the original research team joins the new venture as founders. Commercial expertise and mindset are also required in the team on the condition that the cognitive distance between the scientific researchers and the person responsible for commercialization is not too large.

Female participation in TMT and firm performance: evidence from Chinese private enterprises

PurposeThis paper proposes an examination of the relationship between female participation in top management teams and firm performance in the emerging Chinese private economy. It aims to examine the direct link between female participation in top management teams and firm performance. This is examined in the context of human capital and social capital associated with female top executives to investigate the origins and the contingencies of the linkage.Design/methodology/approachDrawing on resource dependence theory, the study develops and tests a set of hypotheses regarding the key relationships, using the data of listed private‐owned companies in China's security exchanges in 2008, with critical information on financial performance, corporate governance structure and the top management team composition of the companies. Regression analyses are conducted to test the direct relationship and the moderating effects.FindingsThe empirical analysis supports a positive relationship between the degree of female participation and firm performance in Chinese privately owned companies. The positive relationship is further strengthened by female top executives' human capital and social capital, consistent with the hypotheses.Research limitations/implicationsThe present study gains consistent results with research conducted in the Western context, suggesting that the top management behavior of Chinese private enterprises is similar to that of their Western counterparts, possibly due to the fact that they are less influenced by direct governmental control and are more profit‐driven than state‐owned companies.Practical implicationsThe results of the study suggest that Chinese private companies can gain competitive advantages through identifying, attracting, and developing female managerial talents. And the female executives in the new era should be ones with systematic education and strong social connections. Both factors facilitate female executives to contribute better to their companies' performance.Originality/valueThe contribution of the present study is twofold. First, drawing on extant literature in the Western business context, the present study is the first to examine how female participation in top management influences firm performance in the context of the Chinese private sector, which contributes to the understanding of and offers insights to Chinese managerial practices. Second, the study enriches the extant literature by examining the moderating effects of female executives' human and social capitals.

Research on System Evaluation of Top Management-Team Based on the Method of Analytical Hierarchy Process and Rough Set

Top management team (TMT) who are in charge of the right of decision-making and control, determine the rise and fall of the enterprise. Therefore, it is important to research systematically TMT. This paper, on the basis of research results at home and abroad, establishes evaluation index system of TMT from four levels: productivity, TMT composition, adaptability and effectiveness. By use of the theory of FAHP and Rough Set, it builds up evaluation model of TMT system, and inspects the validity and effectiveness of index system and evaluation model of TMT system through the way of empirical study.

Upper echelon theory (UET)

PurposeThe purpose of this paper is to investigate the impacts of such demographic variables as age composition, gender sensitivity, experience, homogeneity/heterogeneity and educational attainment of top management teams (TMT) on small to medium‐sized enterprises (SMEs)' information technology (IT) adoption behaviour.Design/methodology/approachThe data collection method was primarily field survey guided by the five working hypotheses and research objectives. Analysis of the data was made with multiple regression analysis and Pearson correlation coefficient as there were five independent variables that entered into the equation, though at different stages/times.FindingsAs the study unravelled, the age composition, experience and gender sensitivity of TMT members of SMEs were found to have significantly strong power of predicting the extent of adoption of IT. Group homogeneity, in terms of functional track, has negative impacts and education has weak impacts, contrary to many previous inquiries.Practical implicationsThe paper takes a sample of subjects across industries from where findings are specifically generalized. Extended data and measures are required for further in‐depth investigation in specific areas and industries not covered by this work in order to build external validity and further expand knowledge. Also, the paper suggests that marketers of IT infrastructures are encouraged to focus more on individual and group idiosyncrasies of decision makers measured by age, gender and experience in order to accurately predict and timely package programmes that win trial, loyal, switching and viral/advocacy behaviours in this global age.Originality/valueThe paper bridges a knowledge gap by replicating and complementing upper echelon theory on the extent to which IT adoption is determined and shaped by the demographic factors of members of TMT in Nigeria, where such studies rarely exist.

The Top Management Team, Reflexivity, Knowledge Sharing and New Product Performance: A Study of the Irish Software Industry

In the present study, we develop a model to predict new product performance incorporating the literature on top management team (TMT) composition, trustworthiness, knowledge sharing and task reflexivity in organizations. We hypothesize that diversity and trustworthiness in the TMT should influence knowledge sharing and reflexivity and reflexivity and knowledge sharing would be positively associated with new product performance. We test the model using data collected from 39 indigenous software firms in Ireland. Results indicate that age diversity was positively related to knowledge sharing ability while educational level, tenure and functional diversity of the TMT did not have any direct effect on reflexivity or knowledge sharing ability or motivation. However, educational level of TMT, tenure and age diversity had indirect effects on reflexivity and knowledge sharing through the intervening variable of TMT trustworthiness. Further, knowledge sharing and task reflexivity had direct effects on market new product performance. Implications for research and practice are discussed.

Top Management Team Diversity: A Review of Theories and Methodologies

This paper reviews empirical research on top management team (TMT) diversity. A number of scholars have concluded that upper echelons findings, in particular in terms of the consequences of TMT heterogeneity, have been inconclusive. This review conducts an in‐depth analysis of conceptual and methodological issues related to upper echelons diversity studies and offers some directions for future research. Sixty journal articles, published in ten top international journals over a 22‐year period (1984–2005), were analyzed. The results suggest that upper echelons research is increasingly multidisciplinary in nature; however, in‐depth inquiries into the antecedents of TMT composition and the multilevel contextual influences on the implications of TMT heterogeneity are still needed. This review finds that clarity about level of analysis, both theoretically and empirically, remains an important issue in the field and thus a multilevel approach is strongly encouraged. Moreover, the complexity of diversity as a theoretical construct needs to be acknowledged and operationalized accordingly in upper echelons studies.

The role of top management team international orientation in international strategic decision-making: The choice of foreign entry mode

By applying the upper echelons perspective to international strategic decision-making, we examine the impact of managerial characteristics on the choice of foreign entry mode. We distinguish between top management team (TMT) international experience and nationality diversity and propose the latter as a central yet understudied aspect of TMT composition that influences international decision-making with regard to choice of entry mode in a unique way. Our results show that while TMTs with international experience are more likely to choose full-control entry modes over shared-control entry modes, nationally diverse TMTs are more inclined to opt for shared-control over full-control entry modes when entering foreign markets. This highlights the need to treat TMT nationality diversity and international experience as two distinct characteristics influencing international strategic decision-making.

THE IMPACT OF TOP MANAGEMENT TEAM CONFLICT ON NEW PRODUCT DEVELOPMENT: A CROSS-CULTURAL PERSPECTIVE

This study demonstrates how top management team (TMT) conflict impacts new product development (NPD) under cultural differences between Taiwan and the United States. Based on cultural differences, we compare Taiwan and the United States to explore how the heterogeneity of TMT composition leads to team conflict and how TMT conflict affects NPD outcomes in different stages. Several research propositions are presented and indicate that the higher TMT heterogeneity results in a higher degree of team conflict. Furthermore, cognitive conflict positively affects NPD initiation stage, but negative in the implementation stage. From a perspective of cultural differences, managers in Taiwan, compared with those in the United States, tend to sustain organizational cohesion and harmony, emphasize personal relationships, and sidestep direct conflict as much as possible. This cultural characteristic negatively affects NPD initiation, and also wears away the competitive advantages for Taiwanese companies.

Top management team composition and views of viable strategies

Purpose – The purpose of this paper is to form propositions about the relationship between the cognitive composition of the top management team and its view of the viable strategy for a firm. Design/methodology/approach – The cognitive style of 58 members of ten top management teams were analyzed using the Myers Briggs Type Indicator (MBTI) and the strategy types based on Miles and Snow typology were defined using the paragraph approach. Descriptive statistics were used in the analysis. Findings – Based on data from the ten top management teams in the spa industry, this study proposes that the cognitive composition of the top management team affects the strategies they prefer. Further, it is proposed that intuitive-thinking top management teams prefer either a prospector or an analyzer strategy. A defender or an analyzer strategy is preferred by sensing-thinking top management teams. Defining the composition of the top management team using the cognitive style is proposed to be a more promising way to explain the homogeneity or heterogeneity of the team than traditional measures such as age or education in this context. Practical implications – For the top management teams, the results of this study emphasize the importance of knowing the cognitive composition of the top management team and especially taking it into consideration during strategic decision-making. Originality/value – This study extends existing research by illuminating the relationships between the cognitive composition of the top management team and the strategy type and also confirms several results drawn from previous studies concerning manager-strategy relationships. This paper also attempts to inspire researchers to take cognitive composition into consideration when studying the influences the top management team has on a firm’s strategy.

Top management team composition: Asking institutional questions about who is ‘in’, when and why?

Top management team composition: Asking institutional questions about who is ‘in’, when and why?

Becoming a leader: the challenge of modesty for women

PurposeWhile the number of women in managerial positions has been increasing, the gender composition of top management teams is skewed. There are barriers and obstacles in place that limit the movement of women into leadership roles. The purpose of this paper is to examine the relationship between modesty and access to leadership. Specifically, tendencies toward modesty and lack of self‐promotion are hypothesized to perpetuate the lack of female involvement in top management positions.Design/methodology/approachThe literature on modesty and self‐promotion is reviewed. The findings are discussed in terms of the persistent challenges faced by women with regard to their ability to enter senior levels of management.FindingsThe overall message of the paper is that behaviours that are successful for males in the workplace are not successful for females. The good news is that women do not need to adopt male ways of being in order to succeed. A limitation is that the paper is largely “uni‐cultural”, as the research referenced is primarily that undertaken in a North American context. Self‐promotion and modesty may be conceptualized differently in other contexts.Originality/valueThe paper is one of the first to focus on modesty, an important gendered individual difference, to explain persistent workplace inequalities.

Top management team composition and views of viable strategies

PurposeThe purpose of this paper is to form propositions about the relationship between the cognitive composition of the top management team and its view of the viable strategy for a firm.Design/methodology/approachThe cognitive style of 58 members of ten top management teams were analyzed using the Myers Briggs Type Indicator (MBTI) and the strategy types based on Miles and Snow typology were defined using the paragraph approach. Descriptive statistics were used in the analysis.FindingsBased on data from the ten top management teams in the spa industry, this study proposes that the cognitive composition of the top management team affects the strategies they prefer. Further, it is proposed that intuitive‐thinking top management teams prefer either a prospector or an analyzer strategy. A defender or an analyzer strategy is preferred by sensing‐thinking top management teams. Defining the composition of the top management team using the cognitive style is proposed to be a more promising way to explain the homogeneity or heterogeneity of the team than traditional measures such as age or education in this context.Practical implicationsFor the top management teams, the results of this study emphasize the importance of knowing the cognitive composition of the top management team and especially taking it into consideration during strategic decision‐making.Originality/valueThis study extends existing research by illuminating the relationships between the cognitive composition of the top management team and the strategy type and also confirms several results drawn from previous studies concerning manager‐strategy relationships. This paper also attempts to inspire researchers to take cognitive composition into consideration when studying the influences the top management team has on a firm's strategy.

Corporate strategic management: Static and dynamic paradigms

Based on an analysis of the dynamic trend of the environment in which Chinese enterprises operate and the theory of dynamic competition, this paper seeks to propose a new strategic management pattern—the “dynamic paradigm”, which has mainly resulted from an integration of the theoretic contributions of the two strategic management streams. It ultimately aims at enhancing the effectiveness and efficiency of strategic management in an environment full of uncertainties. The dynamic paradigm designed to explore today’s real business world is characterized by: 1) viewing strategic management as a process of both proactive plans and in-the-process reaction, both point and process decision-making and both rational and non-rational decision-making; 2) stressing the roles played by speed and innovation in the dynamic competition; 3) highlighting the inherent ties and the interaction among the three phases of strategic management; 4) emphasizing the critical impacts on the effectiveness and efficiency of strategic management by corporate governance, organizational structure, managerial mechanism, mode of control, composition of top-management team and corporate culture.