Top Management Team Research Articles

How CEO Affective Grooming Helps Develop Top Management Team Behavioral Integration

How CEO Affective Grooming Helps Develop Top Management Team Behavioral Integration

Top Management Team Faultline Size and Family Firm Performance

Top Management Team Faultline Size and Family Firm Performance

Speaking Up to the Boss: The Effects of Top Management Team Members' Felt Trust and Perceived CEO Trustworthiness on Voice Behaviour in Family Firms

AbstractDespite the important role of top management team (TMT) voice, the innate risks and vulnerabilities involved often dissuade TMT members from openly expressing their views to the chief executive officer (CEO). This is especially the case in family firms, where the CEO is often a family member and familial ties regularly take priority over ties with individuals from outside the family (i.e., non‐family members). In this article, we focus on the role of trust as a potential enabler of TMT voice in family firms. Primary matched triadic data from CEOs (n = 79) and family and non‐family TMT members (n = 158) in 79 family firms demonstrate that trust perceptions (feeling trusted by the CEO and perceptions of CEO trustworthiness) have a positive effect on TMT voice behaviour and perceived job performance. Interestingly, this positive effect is significant only for non‐family members, suggesting trust perceptions are more imperative for non‐family TMT members when it comes to speaking up to the boss. A main implication for scholarship at the interface of trust and family business is that our nuanced, and in some instances counterintuitive, findings suggest traditional theories and approaches to studying trust may not apply to family firms. We also discuss practical implications of our findings.

Top Management Team Diversity and Competitive Advantage: An Emirical Investigation of Insurance Companies in Kenya

Top Management Team Diversity and Competitive Advantage: An Emirical Investigation of Insurance Companies in Kenya

The architecture of marketing leadership: how different structures of marketing presence in the top management team drive new product performance

The architecture of marketing leadership: how different structures of marketing presence in the top management team drive new product performance

Aligning With Metrics: Differential Impact of IT and Organizational Metrics on Cognitive Coordination in Top Management Teams

Aligning With Metrics: Differential Impact of IT and Organizational Metrics on Cognitive Coordination in Top Management Teams

Gender homophily and local bias in equity crowdfunding

AbstractWe investigate gender-specific local biases among investors in equity crowdfunding. Based on data from a major German crowdfunding platform, we find that domestic investors favour ventures that are geographically closer to their own place of residence. This bias is particularly evident among female investors, although it is partially offset by gender homophily, whereby female investors favour companies with women in the top management team. Finally, we show that the introduction of the German Small Investor Protection Act may have exacerbated local biases in the German crowdfunding market, particularly with respect to firms with female management. Overall, our results suggest that establishing their companies in close proximity to a large number of potential female crowd investors may help improve female entrepreneurs’ chances of attracting equity crowdfunding investment.

Managerial values and sustainable oriented innovation: Examining the role of knowledge exploration versus exploitation practices

Purpose Leveraging upper echelon theory and knowledge-based view of the firm, this paper aims to explore how chief executive officers’ (CEO) sustainability orientation influences explorative and exploitative knowledge management practices, which in turn influence incremental and radical sustainable innovation under boundary conditions of CEOs’ temporal focus and regional affiliation in the home country. Design/methodology/approach This study used a nonprobability convenience sampling strategy. Using survey-based research, the authors tested the study hypotheses using partial least squares structural equation modeling on a sample of 298 CEOs from Indian small and medium enterprises. This study also tested the reliability and validity of the study variables by using internal consistency tests and convergent and discriminant validity procedures. Findings The study finds that CEO sustainability orientation affects incremental and radical sustainable innovation via the mediating effect of explorative and exploitative knowledge management practices. Furthermore, CEOs’ past temporal focus increases the influence of orientation on exploitative knowledge management. In contrast, future temporal focus increases the influence of CEO sustainability orientation on exploratory knowledge management practices. Finally, CEOs from the southwest, west and northwest regions of India increase the influence of exploratory knowledge management on radical sustainable innovation. Research limitations/implications This study has significant implications for understanding upper-echelon factors that drive knowledge management practices. CEO temporal focus (time orientation) and demographic aspects (regional affiliation) influence CEOs’ investment in different knowledge management and, hence, sustainable innovation management practices. However, this study does not explore cross-cultural differences and the role of the entire top management team in influencing sustainability values on sustainability innovation via knowledge management practices. Practical implications This study comprehends upper-echelon factors that drive investment in knowledge management and sustainable innovation practices. Findings imply that CEOs with past and future temporal focus can influence sustainable innovation, but their investment in knowledge management strategies differs. Past temporal-focused CEOs invest more in exploitative and future temporal focus more in explorative knowledge management for influencing sustainable innovation. Originality/value The study provides novel insights into the influence of upper-echelon traits on knowledge management and sustainable innovation practices. Extant literature has largely explored firm-level factors such as organizational culture influencing a firm's knowledge management practices. However, by integrating the upper echelon with the knowledge-based view of the firm, we explain how the traits of the CEO, especially the temporal perspective, influence knowledge management and sustainable innovation practices of firms.

Digital Transformation and Firm ESG Performance: The Mediating Role of Corporate Risk-Taking and the Moderating Role of Top Management Team

Digital Transformation and Firm ESG Performance: The Mediating Role of Corporate Risk-Taking and the Moderating Role of Top Management Team

Impact of C-level positions on hospital performance: a scoping review protocol

IntroductionThe objective of this scoping review is to identify evidence of the impact of hospital managers in top management (c-suite) on hospital performance. Managers generally have various effects on organisational...

Examining the interaction effect of digitalization and highly educated employees on ambidextrous innovation in Chinese publicly listed SMEs: A knowledge-based view

With the advancement of technology, digitalization has attracted increasing attention in recent years. Previous studies have linked firm digitalization to innovation performance; however, less attention has been given to ambidextrous innovation and small and medium-sized enterprises (SMEs), which play a vital role in economic development. Based on a knowledge-based view (KBV), this research investigates the relationship between digitalization and ambidextrous innovation in Chinese publicly listed SMEs. We found that digitalization promotes radical innovation more significantly than incremental innovation of listed SMEs. We further observed that firm digitalization and highly educated employees with a master's degree or above have a complementary effect on radical innovation, and the financial background of firms' top management team (TMT) members strengthens strengthens this complementary effect. This study not only enriches the digitalization–innovation performance relationship literature, but also contributes to the KBV by tying together three vital elements (technology, people, and relational networks) in the KBV and examining their relationships with ambidextrous innovation. It also has implications for managers of SMEs related to increasing the innovation returns from digitalization endeavors.

The impact of top management team members diversity on corporations’ performance and value: evidence from emerging markets

The study contributes to understanding the impact of top management team (TMT) member diversity on corporations’ performance and value in emerging markets. It examines three dimensions of diversity in TMT: gender, education, and foreign nationalities, providing insights into how these factors influence corporate performance and value. The study’s quantitative analysis of 70 non-financial corporations from Brazil, Egypt, India, Russia, Saudi Arabia, South Africa, and Turkey from 2013 to 2022 using cross-sectional unit analyzes helps establish empirical evidence on the relationship between TMT diversity and corporate performance in emerging markets. Study’s findings can inform corporations in emerging markets about the importance of promoting diversity in their top management teams to improve performance and value. The study found a significant impact of top management team diversity based on education and foreign nationalities but a non-significant impact on gender on some key performance indicators (KPIs). The study can explain the non-significant impact of gender according to shifting the prevailing theory from sexual selection theory to prospect theory. On the other hand, the study believes that the optimal mass of diversification, or the weight of members with diverse backgrounds, determines whether the impact of diversification is positive (it leads to increased creativity, innovation, problem-solving ability, talent attraction and retention, and employee engagement and productivity) or negative (it leads to increased organizational conflict and communication difficulties). If it is less than this mass, the benefits of diversity are limited, but if the mass is greater than it, the harms of diversity are greater than the benefits. The study also highlights the need for future research in the area of diversity in top management and provides a plan outlining steps to enhance diversity in top management teams.

When ideologies align: Progressive corporate activism and within‐firm ideological alignment

AbstractResearch SummaryThis article examines the association between ideology and firm participation in sociopolitical activism. In particular, it focuses on the ideological alignment between a firm's upper echelons and its general employees. We theorize that participation in progressive corporate activism reflects the ideological views of both the top management team and general employees. By examining firm participation in letter campaigns supporting progressive causes, our findings indicate that ideological alignment between a top management teams and general employees' liberal political leanings is associated with a firm's participation in progressive corporate activism. The CEO's own ideological preferences do not have an independent association with this kind of activism. This article concludes with a discussion of implications for our understanding of corporate political action and nonmarket strategy.Managerial SummaryThis article looks at the relationship between political ideology and firm participation in sociopolitical activism. Although some have argued that firms' activism reflects a CEO's ideological preferences or employee activism, we find that neither explanation fully accounts for the kinds of companies that engage in this kind of activism. We find that progressive corporate activism reflects the ideological views of both top management and general employees. Our findings suggest that companies that have ideological alignment on progressive issues are more likely to take public stands on those issues because the stands reinforce core values held by employees and the top management.

Management Dynamics and Global Strategy in Family Enterprise Strategy

The aim of this research is to emphasize how crucial it is for family companies to grow internationally. Despite the large amount of research that has been done in this field, there are still problems and chances for more study. This study includes six publications that use a variety of approaches, including qualitative case studies, fsQCA, and quantitative analysis of secondary data, to investigate the internationalization of family companies. The study examines the function of the board of directors in global strategy, the dynamics within the top management team between family owners and managers and non-family managers, the impact of financial resources and governance on internationalization strategy, and the influence of historical and contextual factors on internationalization choices. This study offers models and insights into how family firms adapt to shifting institutional and market conditions. and strategies to strengthen their global expansion efforts. The authors recommend conducting comparative studies between family and non-family businesses to identify their respective strengths and weaknesses in the context of internationalization.

Influence of Strategic Oriention on Diversity of Top Management and Competitive Advantage of Insurance Companies

Whereas strategy literature presents ambiguous findings on the influence of top executives on firm outcomes, there is mixed evidence that several other dynamics can come into play to enhance or downplay this relationship. This study sought to address this gap by interrogating whether strategic orientation would impact the connection between top management team diversity and competitive advantage of insurance companies based in Kenya. 54 companies targeted were subjected to a cross sectional survey and from this, 41 availed a senior executive to complete the research questionnaire presented. Data gathered was subjected to analysis with the aid of statistical software for social sciences and regression analysis applied to test hypotheses. The impact of strategic orientation was tested through the Baron and Kenny approach. The findings revealed that top manager diversity and strategic orientation affected competitive advantage despite not fully accounting for its variability. Additionally,  strategic orientation presented a statistically significant effect and proved to be a moderator in the association between top management team diversity and competitive advantage.  These findings implied that policy makers and practitioners take guidance on the importance of designing teams with diverse members that can front effective strategies for market competitiveness. The results backed the perspectives in the upper echelon and resource advantage view since it established that when teams have diverse members and calculated strategic positions, they have the capability to attain competitive advantage. The study recommended that future studies take into consideration a longitudinal approach that enables observation and analysis of relationship among variables for a considerable duration.

Exploring Dynamic Capability Drivers of Green Innovation at Different Digital Transformation Stages: Evidence from Listed Companies in China

Digital transformation has emerged as a pivotal catalyst for corporate green innovation, specifically in the context of the green development of the manufacturing industry. Nevertheless, it is evident that there are significant disparities in the various stages of corporate digital transformation. Furthermore, the precise dynamic capabilities required to propel corporate green innovation at distinct stages of this transformation, along with their underlying influencing mechanisms, remain ambiguous. Drawing on dynamic capabilities, this paper delves into the inherent mechanism of corporate green innovation based on the data of listed companies in the Chinese manufacturing industry. The study reaches the following conclusions: (1) The driving process of digital transformation in green innovation exhibits distinct stage characteristics. Digital transformation significantly enhances the quantity of green innovation in the steering period and has a significant impact on both the quantity and quality of green innovation in the shaping and upgrading periods. Moreover, the shaping period has a stronger impact on quantity, while the upgrading period has a stronger impact on quality. (2) There is an evident evolution and upgrading of dynamic capabilities as digital transformation progresses. Among these capabilities, adaptive capability plays a mediating role in the steering period, and innovative capability plays a mediating role in the upgrading period. (3) Top management teams’ environmental attention plays a positive moderating role in digital-transformation-driven green innovation by strengthening absorptive and innovative capabilities. This study reveals the cascading evolution of dynamic capabilities in the digital transformation stage, explores the synergistic effect of top management teams’ environmental attention and specific dynamic capabilities, and provides management strategies for the “quantitative growth and qualitative enhancement” of corporate green innovation.

Managing risk concerns with ordered backlogs in the semiconductor industry: An empirical study

Today, the semiconductor industry is integral to the functionality of many critical goods and processes that are highly valued. The increasing demand across various semiconductor-related industries has correspondingly amplified the risks faced by firms within this sector. In this study, we empirically explore the potential of ordered backlogs as a means to mitigate the risks confronting semiconductor firms. Utilizing a dataset comprising publicly traded semiconductor firms in the USA, over a duration from 1998 to 2021, we quantitatively validate our hypotheses. Our findings reveal that a substantial volume of ordered backlogs is indeed correlated to a diminished level of firm risk. However, it is important to note that this risk-mitigating effect is lessened as the marketing and research intensities of these firms escalate. Moreover, we observe that the advantageous impact of ordered backlogs in risk reduction is more subdued in large workforce firms, whereas the presence of a sizable top management team aids in lessening the impact of ordered backlogs on risk. These managerial insights are invaluable in advancing both theoretical understanding and managerial practices within the realm of the semiconductor industry.

Functional Background Diversity of Top Management Team and Managerial Forecasting Capability

ABSTRACT This study examines whether top management team (TMT) functional background diversity affects managerial forecasting capability. We find that TMTs with more diverse functional backgrounds issue more accurate earnings forecasts. Additional tests reveal that the negative association between TMT functional background diversity and management forecast errors becomes weaker when TMTs work together for a long time, when subgroups are more likely to develop within the team, when CEOs are more powerful, and when team size is larger. By contrast, the reduction in management forecast errors is more significant for functionally diverse TMTs when forecasting difficulty is higher. These findings suggest that TMT functional background diversity plays an important role in managerial forecasting capability. Data Availability: Data are available from the sources cited in the text. JEL Classifications: M14; M41.

Top management team gender diversity and green innovation: A contingent curvilinear link

AbstractThe increasing significance of green innovation for firm competitiveness introduces greater risks and uncertain returns, challenging top managers' strategic decisions. The influence of top management team (TMT) characteristics, particularly gender diversity, on green innovation remains unclear. Drawing on gender difference and social identity theories, this study examines the curvilinear relationship between TMT gender diversity and green innovation among 2026 Chinese publicly listed manufacturing firms from 2011 to 2018. Through the use of fixed‐effects Poisson models to confirm our hypotheses, we uncover an inverted U‐shaped relationship between TMT gender diversity and green innovation. Furthermore, we delve into the contingent roles of individual, corporate, and industry factors affecting this primary relationship. Specifically, our findings reveal that the educational attainment of female executives and the strength of green industry innovation flatten the inverted U‐shaped curve between TMT gender diversity and green innovation, whereas state ownership steepen it. Our study resolves the inconsistencies found in previous research by integrating multiple theoretical perspectives and offers empirical insights into the role of women in shaping sustainable development in emerging markets.

Dampak Integrasi Perilaku TMT dan Kualitas Pengambilan Keputusan Terhadap Transformasi Digital, Keunggulan Bersaing yang Berkelanjutan dan Kinerja Perusahaan

Digital transformation is essential for businesses in the digital age, but many struggle due to cultural barriers. This study examines the impact of Top Management Team on firm performance in the context of digital transformation. Through a survey of 140 professionals in Indonesian firms, the study finds that digital transformation encourages the development of Top Management Team Behaviour integration and Decision-Making Quality, which in turn leads to improved Firm Performance. The study also highlights the mediation effect of digital transformation and Sustained Competitive Advantage on this relationship.