The study is based on a sample of 112 relatively large. Our findings suggest that executive succession does. Duncan, strategic issue diagnosis and creation of momentum for change. Top management team heterogeneity, strategic change and operational performance british journal of management, vol. Top management team demography and corporate strategic change. Strategic change management is the process whereby the strategy is managed in a structured manner to achieve organisational objectives and missions. Top management team demographic characteristics diversity and strategic. Wrapp, normann, braybrooke, lindblom, and bennis have provided some macrostructures incorporating many important elements they have observed in strategic change situations. Change denotes to cope development of touching from an unacceptable present state to a preferred state beckhard and dyer, 1983. This cited by count includes citations to the following articles in scholar. Pdf top management team demography and corporate change. Organizational demography and turnover in top management groups.
This study examines the role of top management team tmt heterogeneity in facilitating. The relationship between the demographic composition of the top management team and strategic clarity was analyzed using data from a sample of retail banks. Hambrick 1994 argues that top management team characteristics are consistently better predictors of organizational outcomes than ceo characteristics. In particular, the paper investigates how top management team heterogeneity affects strategic change both directly, and indirectly, through the design and use of the management accounting system. This study examined the relationship between the demography of top management teams and corporate strategic change, measured as absolute change in diversification level, within a sample of fortune 500 companies. A sample of top 29 banks is studied from 2012 to 2017. Strategy for change management 2 about the author john crawfords change management experience has been gained in the financial industry, directing and managing major business change programmes on a global basis at a senior level, either as a practitioner or consultant. Most such research has attempted to examine the effects of top management team characteristics on organisational outcomes, on the assumption that the collective dispositions and interactions of top managers affect the major choices they make.
As the researcher failed to solve the black box problem, they get no consistent findings. The purpose of this study is to examine the relationship between top management team tmt heterogeneity, corporate social responsibility disclosure csrd and financial performance of banks listed in the nepal stock exchange nepse by applying the conceptual framework of upper echelon theory. Power perspective of tmtt will help out of the research predicament, so to focus on combing and. Attributive change in top management teams as a driver of. The moderating effects of pay imparity and organization slack. They considered top management teams to be decisionmaking groups. By linking theoretical perspectives on human resource diversity to the distinction between knowledge exploration and exploitation, this paper contributes to the growing research literature on diversity and innovation by following up on the original argument by march 1991 that different dimensions of organizational learning depend on different inputs and processes. This study examined the relationship between the demography of top management teams and corporate strategic change, measured as absolute change in diversification level, within a sample of fortune.
Focusing on the upper echelon theory and using the data of chinese ashare listed companies from 2007 to 2015 as a sample, this paper theoretically analyzes and empirically tests the impact of ceo tenure on strategic change, as well as the moderating effects of top management team tmt tenure, tmt age and tmt education level on the relationship between the above two. The impact of the top management teams knowledge and experience on strategic decisions and performance volume 23 issue 4 pengyu li skip to main content accessibility help we use cookies to distinguish you from other users and to provide you with a better experience on our websites. Top management teams tmt there is clear support for the conclusion that the top team rather than the top person, has the greatest effects on organizational functioning e. Management accounting systems, top management team. Generally, upper echelon studies predict that the composition of the organizations tmt, which is the echelon ultimately responsible for strategic success, a. Top management team age structure and firm performance. Wiersema mf bantel ka 1992 top management demography and.
This study examined the relationship of top management team tmt composition to strategic changes in international diversification of a sample of u. An emerging market perspective, strategic change, 28, 3, 209215, 2019. Role of top managementteam demography show all authors. Figure 1 top management team demography and corporate strategic change top management team demography traits low age short organizational tenure short team tenure high educational level technical.
Top management team heterogeneity, corporate social. Professor finkelstein has conducted extensive research on strategic. Dissertation prepared for the degree of doctor of philosophy. Attention as the mediator between top management team characteristics and strategic change. Top management team and board attributes and firm performance. We survey the evidence on the relationship between board and top management team attributes and firm performance in the netherlands sample of 94 listed firms. The influence of top management team functional diversity on strategic orientations. In this study, we analyse the influence of the management team and more specifically their knowledge and capabilities in. The influence of top management team characteristics on the presence of women on corporate board. Pdf available in the academy of management journal 351 march 1992 with 1,188 reads. This study examines the role of top management team tmt member succession in breaking organizational inertia. The characteristics of a team expected to be proactive in initiating stra tegic change include receptivity to change, willingness to take risk, diversity in information sources and perspectives. Research on top management teams commenced in the organisations.
The impact of top management team demography on firm performance in china. This book integrates and assesses the vast and rapidly growing literature on strategic leadership, which is the study of top executives and their effects on organizations. The creation of momentum for change through the process of strategic issue diagnostic, strategic management journal. In business environment, company has to undergo different kind of changes. The findings show that, while the experience of new ceos appears to predict corporate strategic change, these. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The worlds demographic shift towards an older population imposes great. The influence of top management team characteristics on the. Pdf wiersema bantel 1992 top management team demography and.
The results support an integration of the upper echelons perspective and the power circulation theory view of top management team turnover. The link between top management team demography and corporate strategic change corporate strategic change the formulation of strategy entails aligning a firms strengths and weak nesses with the problems and opportunities in its environment andrews, 1971. Pdf this study examined the relationship between the demography of top management teams and corporate strategic change, measured as. Top management team characteristics and strategic changes in. The basic premise is that, in order to understand why organizations do the things they do, or perform the way they do, we need to comprehend deeply the people at the toptheir experiences, abilities, values, social. Top management team heterogeneity, strategic change and operational performance david naranjogil, frank hartmannw and victor s. Dattaw college of business, iowa state university, ames, ia 50011, usa and wdepartment of management, college of business administration, university of texas at arlington, arlington, tx 76019, usa. Pdf top management teams demographic characteristics and.
The ability of the organization to anticipate and respond. Strategic planning is methodical procedure for managing organizations and firms. To this aim we develop hypotheses by using sources from the strategic management and the corporate governance literature. The moderating role of environmental turbulence and interfunctional coordination. Ankita chhabra and manish popli, impact of top management team sociodemographic faultlines on speed of foreign direct investment expansion. The relationship between managerial change and strategic change is a complex issue that challenges our understanding of how firms react to their business environment. Tmt is defined as relatively small group of most influential. Nov 30, 2017 organizational demography and turnover in top management groups. This study examined the relationship between the demography of top management teams and corporate strategic change, measured as absolute change in.
This chapter begins with an explanation for why so many upperechelons researchers choose to study top management teams tmts, emphasizing the assertion that the predictive ability of a teamlevel analysis tends to be much better than that of a ceoonly analysis. Top management team characteristics and strategic changes. It then discusses the three central conceptual elements of tmts. Performance effects of top management team demographic faultlines in the process of product diversification. This paper examines the associations between diversity of board members and financial performance of the firms listed on the indonesia stock exchange idx. The differentiated effects of human resource diversity on. Top management demography and corporate strategic change. Article information, pdf download for top management team characteristics and. Three demographic characteristics of board membersgender, nationality, and ageare used as the proxies for diversity. Top management team diversity and strategic change.
Top management teams demographic characteristics and their influence on strategic change article pdf available in quality and quantity 493 may 2014 with 8 reads how we measure reads. Sydney finkelstein is the steven roth professor of management at the tuck school at dartmouth college, where he teaches courses on leadership, top management teams, and managing mergers and acquisitions. Drawing on the demographic faultline perspective and the concept of attribute. This study integrated concepts from upper echelons, group process and social cognition theories to investigate how demographic diversity and group processes influence strategic consensus within the top management team tmt, where strategic consensus is defined as the degree to which individual mental models of strategy overlap. Pdf top management teams demographic characteristics. He is also faculty director of the flagship tuck executive program, as well as a consultant for companies around the world.
Performance effects of top management team demographic. To understand the connection between authors, concepts and theories that address strategic decisionmaking, in this article the citations and cocitations of works published up to 2014 were analyzed. Bantel, top management team demography and corporate strategic change. Standards of top management commitment elearning industry. Top management team demography and corporate change.
Hypotheses are developed and tested through a survey study among 103 spanish public hospitals. Does top management team diversity promote or hamper foreign expansion. The influence of top management team heterogeneity on firms competitive moves. For these reasons, i follow previous research and focus on the demography of the top management team, as opposed to the demographic characteristics of any one individual or of the entire.
The influence of top management team characteristics on. Jun 01, 20 read performance effects of top management team demographic faultlines in the process of product diversification, strategic management journal on deepdyve, the largest online rental service for scholarly research with thousands of academic publications available at your fingertips. Top management team theory tmtt has been researching on the relationship between top management team tmt and organization outcome through demographic characteristic and its heterogeneity. In this study, we analyse the influence of the management team and more specifically their knowledge and capabilities in the process of strategic change. The purpose of this research is to analyse the relation between the top management teams tmts socio demographic characteristics and the corporate strategic change, measured as carpenter strateg manag j 23. As the strategic decisionmaking process is by its very nature ambig. Thus, a top management team must be proactive in its role of overcoming inertia if strategic change is to be initiated. The impact of the top management teams knowledge and. Research note relationships between top management team.
Strategic management takes the strategic planning for forecasting the organizational change. Ceo tenure,tmt characteristics and strategic change. This study examined the relationship of top management team tmt composition to strategic changes in international diversification of a sample of. Using a sample of 169 listed firms, this study finds that both accounting and market performance have significant. These changes occur due to internal issues of company or advancement of technology. Top management team heterogeneity, strategic change and. Pdf wiersema bantel 1992 top management team demography. Management of strategic change, strategic change management.
Aug 15, 2007 this study examines the role of top management team tmt member succession in breaking organizational inertia. Jun 11, 2016 the role of top management commitment in quality management. Top management team turnover as an adaptation mechanism. Top management team demography and corporate strategic change pp. Research note relationships between top management. The role of top management commitment in quality management. Attention as the mediator between top management team. Dutch corporations generally have a twotier board system. Therefore, absolute change in the level of corporate diversification, the measure used in this study, is an accurate reflection of strategic change. Top management team turnover, ceo succession type, and.
Changes in the top management team performance implications of altering team. The impact of us company internationalization on top management team advice. Although there are instances when top managers have limited discretion over organisational outcomes hambrick and finkelstein, 1987, in most organisations no other small group has as much potential to affect the form or fate of the enterprise as does the top management team. Research note relationships between top management team characteristics and international diversi. Controlling for prior firm performance, organizational size, top team size, and industry structure, we found that the firms most likely to undergo changes in corporate strategy had top. Read performance effects of top management team demographic faultlines in the process of product diversification, strategic management journal on deepdyve, the largest online rental service for scholarly research with thousands of academic publications available at your fingertips. Top management team demography and corporate strategic.
Drawing on the executive demography and the upperechelons perspectives, this paper examines the relationships between top management team tmt characteristics educational level, tenure, age, international experience and functional background and. Assessing the antecedents and consequences of restructuring in the higher education industry. International journal of research in marketing, 223, 333350. Bantel wayne state university this study examined the relationship between the demography of top management teams and corporate strategic change, measured as abso. Research on top management teams commenced in the organisations literature around 1980 bourgeois. The impact of demography on the propensity for strategic change mark fincher, b. Attention as the mediator between top management team characteristics and strategic. Top management teams and total shareholder returns. Our analysis examines cases of contender, follower, and outsider succession and reinforces the key role of nonceo departures in strategic change at a firm.
We compare the impact of two types of change in tmtsin member number and demographic heterogeneityon subsequent strategic reorientation using data on the diversification activities of firms in the japanese textile industry. Wiersema mf bantel ka 1992 top management demography and corporate strategic from bus ihrm at university of washington. Pdf top management team demography and corporate strategic. The demographic characteristics of education, homogeneity in age and tenure, and heterogeneity in educational major and functional background were analyzed. Top management team nationality diversity, corporate.
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