Top management team international experience, international information acquisition and international strategic decision rationality

2020 ◽  
Vol 30 (3) ◽  
pp. 441-456 ◽  
Author(s):  
Akbar Azam ◽  
Fabiola Bertolotti ◽  
Cristina Boari ◽  
Mian Muhammad Atif
Keyword(s):  
Information Acquisition ◽  
Top Management Team ◽  
International Experience ◽  
Management Team ◽  
Strategic Decision ◽  
Top Management ◽  
Strategic Decisions ◽  
Content Type ◽  
International Firms ◽  
Positive Effect

Purpose The purpose of this paper is to test whether Top Management Team (TMT) international experience is positively associated to international information acquisition from managerial international contacts and whether international information partially mediates the positive relationship between TMT international experience and international strategic decision rationality. Design/methodology/approach Data were collected through a survey of small- and medium-sized of international Pakistani software firms. Findings This study reports that TMT international experience-international strategic decision rationality relationship to international information acquisition and that this information acquisition partially mediates the TMT international experience, i.e. international strategic decision rationality relationship. Practical implications When selecting the members of their TMT, international firms should pay careful attention to their international experience. Originality/value Previous research demonstrates that TMT international experience has a positive effect on international strategic decision rationality and that this effect is transferred to performance. This study shows that the positive effect of TMT international experience is derived from the personal international knowledge and the international information collected from managers’ international contacts. This ability to make rational international strategic decisions could have a positive effect on decision-making and firm performance.

Top management team international experience and strategic decision-making

2018 ◽  
Vol 26 (1) ◽  
pp. 50-70 ◽  
Author(s):  
Akbar Azam ◽  
Cristina Boari ◽  
Fabiola Bertolotti
Keyword(s):  
Decision Making ◽  
Top Management Team ◽  
Time Frame ◽  
International Experience ◽  
Top Management Teams ◽  
Management Team ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Top Management ◽  
Content Type

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.

Takeover defense, collective action and the top management team

2018 ◽  
Vol 41 (12) ◽  
pp. 1375-1394
Author(s):  
Mark A. Tribbitt ◽  
Yi Yang
Keyword(s):  
Defense Mechanisms ◽  
Top Management Team ◽  
Management Team ◽  
Competitive Dynamics ◽  
Strategic Decision ◽  
Top Management ◽  
Collective Actions ◽  
Female Ratio ◽  
Content Type ◽  
Takeover Defense

Purpose The purpose of the study is to examine the interaction between the structure of the top management team, takeover defense mechanisms and firms rate of collective actions. Design/methodology/approach The study uses elements of agency theory, prospect theory and competitive dynamics research to develop a model for examining heterogeneity in the rate of collective actions among firms in the technology sector. A sample of 299 firm-year observations arrayed into panel regression analyses is used. Findings The findings from this study show a positive relationship between the size of the top management team and the count of collective actions when takeover defense mechanisms are present. Further this study finds a negative relationship between top management team ownership and collective actions when these same takeover defense mechanisms are present. Additionally, the female ratio of the top management team is negatively related to collective actions. Research limitations/implications This study was conducted using a sample of technological firms. These relationships may not be generalizable to firms in other contexts. Further, other elements of the firm’s governance structure (i.e. board of directors or shareholders) may play an important role in the strategic decision-making process. Originality/value This study expands on existing research by linking several blocks of literature, top management team literature, competitive dynamics literature and corporate governance literature, into a model to examine firm structural characteristics on the heterogeneity in the propensity to formulate collective actions among firms.

Top management team gender diversity and productivity: the role of board gender diversity

2019 ◽  
Vol 38 (1) ◽  
pp. 71-86 ◽  
Author(s):  
Nalongded Luanglath ◽  
Muhammad Ali ◽  
Kavoos Mohannak
Keyword(s):  
Top Management Team ◽  
Gender Diversity ◽  
Moderating Effect ◽  
Management Team ◽  
Top Management ◽  
Employee Productivity ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Board Gender Diversity ◽  
Positive Effect

Purpose Based on the significance of context, the purpose of this paper is to investigate a positive top management team (TMT) gender diversity–productivity relationship derived from the upper echelons theory, and a moderating effect of board gender diversity on the TMT gender diversity–productivity relationship derived from the relational framework. Design/methodology/approach The hypotheses were tested in 172 organisations listed on the Australian Securities Exchange. This research uses archival data from multiple secondary sources, with a one-year time lag between the predictor and outcome. Findings The findings indicate a positive effect of TMT gender diversity on employee productivity and a strong positive TMT gender diversity–employee productivity relationship in organisations with a low level of board gender diversity. Originality/value This study provides pioneering evidence for a positive effect of TMT gender diversity on employee productivity and for a moderating effect of board gender diversity.

scholarly journals A Relationship Model between Top Management Team Cognitive Heterogeneity and Strategic Decision Quality and Its Implications for Sustainability

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-12
Author(s):  
Qiannan Wang ◽  
Yuhui Ge ◽  
Cuihua Hu
Keyword(s):  
Top Management Team ◽  
Management Team ◽  
Strategic Decision ◽  
Decision Quality ◽  
Top Management ◽  
Strategic Decisions ◽  
Entrepreneurial Spirit ◽  
Cognitive Heterogeneity ◽  
The Relationship

To achieve sustainable development, a top management team (TMT) and the quality of its strategic decisions on sustainability are critical. This paper builds a relationship model between top management team (TMT) cognitive heterogeneity and the quality of strategic decisions. This research is important because TMT cognitive heterogeneity can comport decision-making schemes with complex and changing environments. Specifically, this paper explores the intermediary role of the team fusion process composed of different shareholders’ agents in integrating TMT heterogeneous cognition to improve the quality of strategic decisions. It adopts the upper echelon theory, which proposes that decision-makers have limited rationality and face difficulty in collecting and analyzing information in complex and changing environments. A questionnaire survey of 107 Chinese enterprises was conducted. Through the research framework of “cognitive heterogeneity–team fusion–strategic decision quality,” this paper constructs a moderated mediator model with entrepreneurial spirit as the moderating variable. Based on statistical analysis, the following results and contributions are obtained. First, TMT cognitive heterogeneity positively affected strategic decision quality. Second, two dimensions of team fusion—information integration and emotional fusion—mediated the relationship between TMT cognitive heterogeneity and strategic decision quality. Third, entrepreneurial spirit positively moderated the relationship between information integration and strategic decision quality, as well as the relationship between emotional fusion and strategic decision quality. The implications of our results related to sustainability are also discussed.

Examining the pull, the push, and their simultaneous effects on managerial turnover

2020 ◽  
Vol 58 (12) ◽  
pp. 2639-2654 ◽  
Author(s):  
Yoonhee Choi ◽  
Namgyoo K. Park
Keyword(s):  
Top Management Team ◽  
The United States ◽  
Management Team ◽  
Top Management ◽  
Content Type ◽  
Economic Mechanism ◽  
Positive Effects ◽  
Psychological Mechanisms ◽  
Managerial Turnover ◽  
Psychological Mechanism

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.

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

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Hassan Shakil ◽  
Nor Shaipah Abdul Wahab
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Total Risk ◽  
Firm Risk ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Social

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.

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