scholarly journals Upper Echelon Theory: Role of Community and Strategy

Author(s):  
Majdi Anwar Quttainah

In this paper, we argue that community plays an important role in shaping the values and characteristics of top management teams. It builds on upper echelon theory to posit that community level characteristics are instrumental in framing the cognitions of CEOs and top executives. Strategic decisions made by managers in organizations represent the significant impact community has on top management teams. Examining the influence community has on top management teams provides additional implications about why certain firms perform better than others.

2021 ◽  
Vol 13 (20) ◽  
pp. 11453
Author(s):  
Shukuan Zhao ◽  
Bochen Zhang ◽  
Dong Shao ◽  
Shuang Wang

Under the background of increasingly severe environmental problems, green innovation has become a key way to realize coordinated development of economy and environment. Therefore, it is of great significance to explore the antecedent factors of green innovation. Based on the upper-echelon theory, this study explores the influence of the academic background of top management teams (TMT) on firm's green innovation outcomes and firm performance in Chinese listed companies. This study also discusses three boundary conditions for TMT's academic experience to promote firm's green innovation. The results show that TMT's academic experience promotes green innovation output. Moreover, TMT's academic experience do not have a uniform effect: strict environmental regulation strengthens the relationship between TMT's academic experience and green innovation output, while political connection and innovation input negatively moderate this relationship. Furthermore, green innovation output does not result in better economic benefits for enterprises with top executives who have academic experience, and this condition is observed more in state-owned enterprises. This study reveals the motivation of green innovation and provides a useful reference for enterprises to implement green innovation strategy more effectively.


2016 ◽  
Vol 29 (3) ◽  
pp. 37-52 ◽  
Author(s):  
Wenhong Luo

The inclusion of the CIO in the top management team (TMT) is one indicator of how top executives view the role of IT within their firms. This study draws upon the upper echelons theory to examine the organizational factors contributing to the CIO inclusion. A panel data set is used to empirically test the hypotheses. The results show that TMT age and firm diversification are found to be linked to the CIO inclusion. The study contributes to an understanding of the relationship between the CIO and TMT and provides a potential measure of IT importance within firms.


1992 ◽  
Vol 16 (3) ◽  
pp. 73-90 ◽  
Author(s):  
William R. Sandberg

The article offers an overview of strategic management and its various schools of thought, followed by a summary of the field of entrepreneurship and its own disagreements over definition and boundaries. It suggests that strategic management might help resolve such disagreements through its focus on “the entrepreneurial work of the organization,” which is based on variables that describe the organization's industry, resources, processes, and strategy. Finally, the article both describes and proposes contributions of strategic management to entrepreneurship theory, specifically addressing issues of new business creation, innovation, opportunity seeking, risk assumption, top management teams, and group processes in strategic decisions.


2016 ◽  
Vol 23 (4) ◽  
pp. 504-523 ◽  
Author(s):  
Peng-Yu Li

AbstractThis paper explores whether top management teams’ (TMTs) knowledge and experience are significant predictors of a firm’s strategic decisions and organization outcomes. The existing research throws little light on how firms with limited resources embedded in TMTs, particularly in emerging markets, innovate and achieve success in foreign countries. We focus on the impact of TMTs’ functional background heterogeneity and international experience on innovation and internationalization, as well as examine the relationship between innovation, internationalization and performance. The proposed relationships are empirically investigated in a sample of Taiwanese-listed companies operating in the electronics industry. The results demonstrate a positive association between a TMT’s functional background heterogeneity and a firm’s innovation. Moreover, a TMT’s international experience relates positively to a firm’s innovation and internationalization, therefore firms with a higher level of innovation achieve a higher level of internationalization.


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