Multilevel models of transformational leadership, behavioral integration of top management team and manager ambidexterity in SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuzhen Duan ◽  
Xiaobao Peng ◽  
Qiong Gui ◽  
Haibin Zhou ◽  
Xuehe Zhang ◽  
...  

Purpose This paper aims to investigate the effect of transformational leadership (TL), behavioral integration of top management team (TMT) and team conflict on manager ambidexterity behavior. Design/methodology/approach Hierarchical linear modeling has been applied to test the degree of influence of TL and behavioral integration of TMT on manager ambidexterity using data collected from 60 chief executive officers (CEOs) and 322 TMT members of small- and medium-sized enterprises in the Chinese electronic commerce industry. Findings The results suggest the following: transformational leadership is positively associated with the behavioral integration of TMT and a high level of TMT behavioral integration strengthens the positive relationship between transformational leadership and manager ambidexterity. Also, team conflict moderates the mediating role of TMT behavioral integration in the relationship of transformational leadership to manager ambidexterity. Research limitations/implications First, this study does not directly test whether transformational leadership encourages a focus on manager ambidexterity, although the results on behavioral integration draw attention to the usefulness of such leadership. Second, in focusing on manager ambidexterity, this paper omits key variables, especially skills and abilities. Practical implications Given that several aspects of leadership can be learned and adjusted, the findings suggest that organizations can improve their individual ambidexterity by helping the CEOs develop and display transformational leadership through training and mentoring. TMTs were found to rely mostly on the behavioral integration approach (collaborative behavior, quality of information exchange and joint decision-making) and team conflict management. Such reliance, in turn, predicts effective team behavioral coordination and subsequent manager ambidexterity. Originality/value First, this study goes beyond the current research that focuses primarily on ambidexterity at the inter-organizational alliance, firm and business unit levels. This earlier research lacks a conceptually and empirically validated understanding of ambidexterity at the level of the manager. In contrast, by investigating and examining the antecedents of manager ambidexterity behavior, the study develops an individual perspective to elucidate the ambidextrous mechanisms. Second, the study also contributes by explaining how transformational leadership relates to manager ambidexterity. To date, only limited research has disentangled how transformational leaders enhance managers’ teamwork (e.g. behavioral integration) and how such leaders affect the ambidextrous orientation of managers.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hasan Yousef Aljuhmani ◽  
Okechukwu Lawrence Emeagwali ◽  
Bashar Ababneh

PurposeThis study aims to investigate the impact of chief executive officers' (CEO’s) core self-evaluation and grandiose narcissism on firm performance. This work combines bright and dark personality sides to explore how complex CEO's behavioral characteristics affect firms' outcomes. In addition, top management team (TMT) behavioral integration is considered as an organizational setting that acts as a conductive device bridging CEOs behavioral characteristics with firms' performance.Design/methodology/approachThe data for this study are based on 187 respondents, including CEOs and TMTs, across medium and large firms in Turkey through an online survey using a questionnaire. Structural equation modeling (SEM) was used to analyze the data collected.FindingsThe study finds that only CEO-TMT narcissism and TMT behavioral integration have a positive direct effect on firm financial performance. Contrary to expectations, CEO-TMT core self-evaluation has a negative direct effect on firm performance. Moreover, the results show that environmental dynamism interacts positively and significantly with CEO-TMT narcissism. Thus, the claim that TMT behavioral integration has a mediating effect is not supported in the context of medium and large firms in Turkey.Originality/valueThis study contributes to the upper echelons theory (UET) literature by highlighting the boundary conditions under which narcissistic CEOs can interact with more behaviorally integrated TMT members to exchange information, make joint decisions and collaborate in a relatively dynamic environment, as well as aggregating the bright side and dark side of CEOs personality traits and examining their effects alongside those of TMT behavioral integration on the firm performance. Finally, this study enriches the upper echelons literature by providing evidence from Turkey.


2019 ◽  
Vol 23 (1) ◽  
pp. 63-79 ◽  
Author(s):  
Abubakr Suliman ◽  
A. Srinivasa Rao ◽  
Tamer Elewa

Purpose Various research studies have been carried out to study Chief Executive Officers’ (CEOs’) transformational leadership in driving organizational performance and success. Evidence shows that few studies were carried out on CEO transformational leadership and top management team (TMT) performance in Gulf Cooperation Council (GCC) region. Thus, this study aims to provide a unique contribution and the first of its kind to examine the CEO leadership–TMT performance link across GCC countries. Design/methodology/approach In this study, the researchers approached 500 employees and 30 CEOs working in 30 different organizations operating in the GCC countries. The firms were selected conveniently from different industries located in the UAE, Saudi Arabia, Kuwait, Oman and Bahrain. The researchers used the PASW (SPSS) program to analyze the data. Findings The findings show that psychological empowerment has no significant role in moderating the transformational leadership – TMT performance relationship. Internal support for innovation plays a significant role in mediating the relationship between transformational leadership and TMT performance. Research limitations/implications The present study has not examined the behavioral aspects of CEO followers. Future research may study behavioral characteristics of the entire TMT. Originality/value This study contributes to body of research that identifies CEO transactional leadership as perceived by the followers was found to be more important in predicting TMT performance than transformational leadership in the context of organizations located in GCC countries. Managerial implications and future research areas are further discussed.


2020 ◽  
Vol 58 (12) ◽  
pp. 2639-2654 ◽  
Author(s):  
Yoonhee Choi ◽  
Namgyoo K. Park

PurposeThis paper aims to examine the economic and psychological mechanisms in turnover at the managerial level. The paper investigates how (1) the ease of moving posed by alternative jobs (i.e. the economic mechanism) and (2) the desire to move due to low job satisfaction (i.e. the psychological mechanism) simultaneously influence top management team (TMT) turnover and these managers' subsequent job position and pay.Design/methodology/approachUsing 25 years of panel data on more than 2,000 top managers in the United States, the paper utilizes fixed-effects logistic regressions and the ordinary least squares model to test the hypotheses.FindingsThe authors find that CEO awards (an economic mechanism) and low compensation (a psychological mechanism) independently have positive effects on turnover. Turnover due to the economic mechanism leads to a higher position and pay, whereas turnover due to the psychological mechanism does not guarantee the same outcome. Further, when examining how pay dissatisfaction influences turnover simultaneously with CEO awards, the authors find that managers with the highest pay leave their firm, and not those with the lowest pay.Originality/valueThe paper employs the pull-and-push theory in the employee turnover literature and applies it to the top management team literature. By doing so, this paper contributes original insights to how economic and psychological mechanisms simultaneously affect managerial turnover and its subsequent outcomes.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Hassan Shakil ◽  
Nor Shaipah Abdul Wahab

Purpose This 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/approach This 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. Findings This 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 implications This 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/value Previous 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.


2018 ◽  
Vol 26 (1) ◽  
pp. 50-70 ◽  
Author(s):  
Akbar Azam ◽  
Cristina Boari ◽  
Fabiola Bertolotti

Purpose This study aims to explore the influence of top management team international experience on international strategic decision-making rationality and, subsequently, its effect on decision effectiveness (decision performance). Design/methodology/approach This analysis is based on survey data of small- and medium-sized international Pakistani firms operating in the IT industry. Findings Results show that top management team international experience is positively related to international strategic decision-making rationality, and the latter partially mediates the international experience – decision effectiveness relationship. Research limitations/implications The study is based on data collected from a single industry and focuses on an international decision that occurred within a time-frame of previous four years. Practical implications Findings suggest that international firms, when composing their top management teams, should favor the inclusion of internationally experienced managers. Originality/value The study of the influence of international experience on the decision-making process in general and decision-making rationality in particular has been largely neglected in extant literature. This paper highlights one way through which the international experience of the top management team as a whole relates to the effectiveness of international decisions. The paper also advances emergent managerial cognition literature focusing on the top management team and not individual decision makers.


2014 ◽  
Vol 24 (6) ◽  
pp. 957-980 ◽  
Author(s):  
Carmen Camelo-Ordaz ◽  
Joaquín García-Cruz ◽  
Elena Sousa-Ginel

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