scholarly journals Effects of Top Management Team Characteristics on Patent Strategic Change and Firm Performance

2022 ◽  
Vol 12 ◽  
Author(s):  
Yongtao Zhou ◽  
Yi Zhou ◽  
Li Zhang ◽  
Xu Zhao ◽  
Weijing Chen
Keyword(s):  
Firm Performance ◽  
Safety Climate ◽  
Strategic Change ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Core Competitiveness ◽  
Upper Echelons Theory ◽  
Patent Strategy ◽  
Top Managers

Patent strategy is increasingly recognized as a vital contributor in promoting core competitiveness of an enterprise. A top management team (TMT) has been indicated as one of the key factors driving changes in patent strategy. Based on upper echelons theory, this study examines how TMT characteristics, including, team diversity, emotional intelligence, and safety climate, influence enterprise patent strategic change and, hence, the business outcome. The data from 930 top managers in 228 enterprises showed that the changes in patent strategies are significantly influenced by the characteristics of top managers. These aforementioned internal TMT factors have diverse effects on the speed and scope of the enterprise patent strategic change, which in turn affects firm performance in a positive and negative way, respectively.

Top Management Team Surface-Level Diversity, Strategic Change, and Long-Term Firm Performance: A Mediated Model Investigation

2019 ◽  
Vol 26 (3) ◽  
pp. 304-318 ◽  
Author(s):  
Jie Wu ◽  
Orlando C. Richard ◽  
Xinhe Zhang ◽  
Craig Macaulay
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Strategic Change ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Upper Echelons ◽  
Surface Level ◽  
Upper Echelons Theory

Top management team (TMT) heterogeneity research has not yet clearly revealed whether surface-level diversity (i.e., national culture, gender, age) contributes to or detracts from a firm’s financial performance and has not focused on how strategic change frequency (number international diversification or refocusing activities) serves as an intervening mechanism. Based on a sample of 1,993 firms between 2003 and 2015, we examine the mediating role of strategic change frequency in the relationship between surface-level diversity and long-term firm performance. Grounded in the upper echelons perspective, we find that TMT surface-level diversity increases rather than decreases strategic change frequency. Furthermore, our results are consistent with our hypothesized positive relationship between strategic change frequency and long-term firm performance. More important, we also find support for a longitudinal-based mediation model in which strategic change frequency in terms of diversification/refocusing actions (Time 2) transmits the positive effect of TMT surface-level diversity (Time 1) to long-term financial performance (Time 3) without accounting for any moderated conditions suggesting that mediation models warrant more utilization in the upper echelons research and internationalization research domains. Implications for the upper echelons theory in a more global world as if relates to the often unexplored surface-level diversity are offered.

Founder Versus Family Owners’ Impact on Pay Dispersion Among Non-CEO Top Managers: Implications for Firm Performance

2014 ◽  
Vol 43 (5) ◽  
pp. 1524-1552 ◽  
Author(s):  
Peter Jaskiewicz ◽  
Joern H. Block ◽  
Danny Miller ◽  
James G. Combs
Keyword(s):  
Firm Performance ◽  
Top Management Team ◽  
Management Team ◽  
Test Theory ◽  
Top Management ◽  
Panel Analysis ◽  
Top Managers ◽  
Pay Dispersion

Emerging evidence suggests that pay dispersion among non-CEO top management team (TMT) members harms firm performance, which raises questions about why firms’ owners tolerate or even support it. Prior research shows that the key distinction between founder and family owners is that in addition to firm performance and growth goals, family owners pursue socioemotional goals. On the basis of this distinction, we develop and test theory linking founders’ and families’ ownership to TMT pay dispersion. Consistent with our theory, a Bayesian panel analysis of Standard & Poor’s 500 firms shows that founder owners use less TMT pay dispersion and that family owners, relative to founder owners, use more, although that declines across generations. We also provide evidence that TMT pay dispersion harms firm performance. Our theory and results are significant because they help to explain why some owners favor compensation practices that cause TMT pay dispersion, despite evidence that this harms firm performance.

scholarly journals Top management team diversity and firm performance: Empirical evidence from the fashion and luxury industry

2017 ◽  
Vol 15 ◽  
pp. 325-340 ◽  
Author(s):  
Domenico Rocco Cambrea ◽  
Giorgia Lussana ◽  
Fabio Quarato ◽  
Paola Varacca Capello
Keyword(s):  
Firm Performance ◽  
Research Question ◽  
Top Management Team ◽  
Educational Background ◽  
Management Team ◽  
Top Management ◽  
Luxury Brands ◽  
Upper Echelons ◽  
Term Survival ◽  
Upper Echelons Theory

The purpose of this study is to advance the current understanding of the relationship between top management team (TMT) diversity and firm performance in the fashion and luxury industries. Predictions from the relevant theoretical perspectives – namely, Upper Echelons and Social Psychology theories – are often conflicting, and the controversial nature of this phenomenon together with the lack of empirical studies in the fashion and luxury industries have inspired the research question to investigate the link between TMT diversity and firm performance. Moreover, this is even more relevant in a setting where human capital management is one of the main keys to the long-term survival of fashion and luxury brands. To this extent, a principal component analysis and subsequent regression analyses have been performed on a sample of 78 listed companies operating in the fashion and luxury industries, over the five-year period 2011-2015. Results indicate that TMTs with greater gender, international experience, and educational background diversity are positively associated with higher firm performance. Hence, we found support for the Upper Echelons Theory, which predicts organizational outcomes as a function of managerial characteristics, thus offering few practical implications for companies operating in these industries.

Untangling the relationship between strategic consistency and organizational performance: An empirical analysis of moderator variables

2016 ◽  
Vol 23 (4) ◽  
pp. 483-503 ◽  
Author(s):  
Chin-Shien Lin ◽  
Van Thac Dang
Keyword(s):  
Organizational Performance ◽  
Theoretical Foundation ◽  
Strategic Change ◽  
Top Management Team ◽  
Management Team ◽  
Organizational Slack ◽  
Top Management ◽  
Environmental Dynamism ◽  
Upper Echelons Theory ◽  
The Relationship

AbstractResearchers have advocated various perspectives on the relationship between strategic consistency and organizational performance. This inconclusive debate has created an inadequate theoretical foundation in strategic consistency literature. Therefore, the present study uses strategic planning, strategic change, upper echelons theory, and other literature as the theoretical foundation to empirically examine the moderating roles of organizational slack, environmental dynamism, and top management team attributes in the relationship between strategic consistency and organizational performance. Using 439 electronics companies in the Taiwanese stock market as sample data, the empirical results show that organizational slack, environmental dynamism, top management team tenure, and top management team tenure heterogeneity moderate the relationship between strategic consistency and organizational performance.

The Impact of Top Management Team Demography on Firm Performance in China

2005 ◽  
Vol 4 (3) ◽  
pp. 227-250 ◽  
Author(s):  
Li-Qun Wei ◽  
Chung-Ming Lau ◽  
Michael N Young ◽  
Zhihui Wang
Keyword(s):  
Firm Performance ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
The Impact

Top Management Team-Rated Safety Climate Measure

2016 ◽  
Author(s):  
Sean Tucker ◽  
Babatunde Ogunfowora ◽  
Dayle Ehr
Keyword(s):  
Safety Climate ◽  
Top Management Team ◽  
Management Team ◽  
Top Management

Using Causal Mapping to Uncover Cognitive Diversity within a Top Management Team

2005 ◽  
pp. 203-232 ◽  
Author(s):  
David P. Tegarden ◽  
Linda F. Tegarden ◽  
Steven D. Sheetz
Keyword(s):  
Firm Performance ◽  
Top Management Team ◽  
Black Box ◽  
Top Management Teams ◽  
Management Team ◽  
Top Management ◽  
Cognitive Diversity ◽  
Causal Mapping ◽  
And Cluster Analysis ◽  
Cognitive Factions

The cognitive diversity of top management teams has been shown to affect the performance of a firm. In some cases, cognitive diversity has been shown to improve firm performance, in other cases, it has worsened firm performance. Either way, it is useful to understand the cognitive diversity of a top management team. However, most approaches to measure cognitive diversity never attempt to open the “black box” to understand what makes up the cognitive diversity of the team. This research reports on an approach that identifies diverse belief structures, i.e., cognitive factions, through the use of causal mapping and cluster analysis. The results show that the use of causal mapping provides an efficient and effective way to identify idiosyncratic and shared knowledge among members of a top management team. This approach allows the cognitive diversity of the top management team to not only to be uncovered, but also to be understood.

Do Interaction and Education Moderate Top Management Team Age Heterogeneity and Corporate Social Responsibility?

2018 ◽  
Vol 46 (12) ◽  
pp. 2063-2079 ◽  
Author(s):  
Yawei Liu ◽  
M. Awais Gulzar ◽  
Zhaoguo Zhang ◽  
Qingxiang Yang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Listed Firms ◽  
Upper Echelons Theory ◽  
Csr Strategy ◽  
Corporate Social ◽  
The Relationship

Using Chinese listed firms' data from 2008 to 2012, we explored, on the basis of upper echelons theory, whether and how top management team (TMT) age heterogeneity affects corporate social responsibility (CSR) and if TMT interaction and TMT education moderate this relationship. Results revealed an inverted U-shaped relationship between TMT age heterogeneity and CSR, in which TMT interaction played a moderating role; however, TMT education did not moderate the relationship. These results are helpful and significant for the understanding of CSR strategy, and for the improvement of human resource management.

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