Leveraging Multinational Firm Performance through the Use of Diversified Top Management Teams

Author(s):  
Güven Alpay ◽  
Pinar Büyükbalci

This chapter discusses the theoretical framework covering the relationship between top management team diversity determinants and certain organization-level variables in order to capture the essence of possible strategic outcomes. Accordingly, it attempts to summarize and clarify the theoretical and empirical literature regarding the effects of diversity on the functioning of top management teams. In this sense, the main aim of this study is to contribute to and improve the current literature on diversity through the viewpoint of strategic international business literature by directly focusing on the organizational unit—top management teams—which is responsible for formulating and implementing strategies that will leverage organizational performance in the long run.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammed Aboramadan

Purpose The purpose of this paper is to review the empirical literature on the relationship between the characteristics of the top management teams (TMTs) and the performance of entrepreneurial firms. Design/methodology/approach A literature review was carried out on 33 empirical studies related to TMTs and performance through analyzing and summarizing the quantitative studies conducted in this area. Findings The results of the literature review show that the relationship between TMTs (demographics and heterogeneity) and the performance of entrepreneurial firms is not straightforward and further investigation is still needed in this area. Practical implications The author maps the theoretical and empirical research of TMT demographics and heterogeneity in relation to firms’ performance and possible moderators and mediators, which govern the relationship between TMT composition and firms’ performance. Originality/value The author presents a detailed future research agenda for the purpose of advancing the theoretical and empirical knowledge on TMT-performance links. The review provides a comprehensive picture of TMT-firms’ performance literature and what should be done to enrich the literature.


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.


2020 ◽  
Vol 9 (4) ◽  
pp. 36
Author(s):  
Mercedes Rodríguez-Fernández ◽  
Ana I. Gaspar-González ◽  
Eva M. Sánchez-Teba

This study contributes to the dissemination of the theoretical and empirical knowledge on the Upper Echelons Theory, considering training and demographic diversity in Top Management Teams (TMTs) as a unique feature of companies, in our case, the IBEX 35 companies. Based on the results, we can confirm that the inclusion of women in management teams positively influences the sales of a company and contributes to increasing financial results. Age and knowledge of two or more languages are important factors in achieving an increase in financial performance. From the point of view of business practice, the results obtained are useful for increasing knowledge of which TMT characteristics are valid, which allows for better results and the establishment of responsible organizational policies that promote the inclusion of gender diversity in TMTs. In addition, the results of this study indicate that the incorporation of members of other non-Spanish nationalities would constitute a distinctive feature of a company and would enrich it not only financially, but also culturally.


Author(s):  
Steven A. Stewart ◽  
Allen C. Amason

Since the earliest days of strategic management research, scholars have sought to measure and model the effects of top managers on organizational performance. A watershed moment in this effort came with the 1984 introduction of Hambrick and Mason’s upper echelon view and their contention that firms are a reflection of their top management teams (TMT). An explosion of research followed and hundreds, if not thousands, of manuscripts have since been published on the subject. While a number of excellent reviews of this extensive literature exist, a relative few have asked questions about the overall state and future of the field. We undertook this assessment in an effort to answer some key questions. Are we still making progress on the big questions that gave rise to the upper echelon view, or have we reached a point of diminishing returns with this stream of research? If we are at an inflection point, what are the issues that should drive future inquiry about top management teams?


2013 ◽  
Vol 66 ◽  
pp. 64-77 ◽  
Author(s):  
Vadimas Diska ◽  
Albinas Marčinskas

Šiuolaikinės ekonomikos vystymosi sąlygomis, kai žinios tampa dominuojančiu veiksniu ir auga specialiųjų žinių vaidmuo bei žmogiškojo kapitalo reikšmė, plečiasi informacinių technologijų galimybės, pastebima vadybinės veiklos sudėtingėjimo tendencija. Būtent tiems, kurie vykdo vadybinę veiklą, tenka esminė užduotis paversti žinias ir švietimą tiesiogine visuomenės produktyvumo jėga, tikruoju visuomenės ir jos ekonomikos kapitalu. Straipsnyje pateikiama aukščiausio lygio vadovų ir jų komandų samprata bei vaidmens svarba organizacijose. Pagrindinis dėmesys skiriamas aukščiausio lygio vadovų komandų teorinių ir empirinių tyrimų rezultatams, atskleidžiant šių komandų reikšmingumą įmonių veikloje žiniomis grindžiamos visuomenės iššūkių kontekste.Pagrindiniai žodžiai: žiniomis grindžiama visuomenė, aukščiausio lygio vadovai, aukščiausio lygio vadovų komanda.The role and impact of top management teams on organizations’ performance in the context of knowledge-based society  Vadimas Diska, Albinas Marčinskas SummaryThe most important issue in the article is how companies, because of great complexity and rather vague environmental conditions, knowledge-based society challenges, in order to stick to their position and gain competitive advantage, must be able to anticipate and react timely to external and internal environmental pressure and show an initiative to undergo changes. The nature of the organization’s reaction and efficiency depends on the top management team characteristics, structure, and potency.The article analyzes the conception of top management teams, their particularity, and the role they play in the organization. It is stressed that considering the role and importance of top management team in an organization, the scientists of strategic management and other fields much attention devote to their performance investigation. In their opinion, the organization’s top management team greatly impacts strategic trends and, therefore, is one of the main strategic resources (Castanias, Helfat, 1991; Michel, Hambrick, 1992; Finkelstein, Hambrick, 1996; Certo et al. 2006).The article stresses that the investigations of top management teams greatly developed in the 80’s of the last century; they were based on the “upper echelon“ theorical concept which illustrated different top management team aspects in the context of structure, decision making, and performance. In the previous “upper echelon“ investigations, while analysing the possible links between a top management team demographic characteristics and different organization results, the organizational demography approach prevailed. The performed investigations confirm the existing link between top management teams and organizational performance which is very important under conditions of rapid environmental changes.The article presents the main trends revealed in the scientific literature on the top management teams: team resources, team processes, managing team performance, and personal integration into the task. Therefore, it is important to have a better understanding of how top management teams impact organizational performance, not only to indentify the demographic indexes, but also to evaluate team and individual processes which function in top management teams. The investigation review has revealed that top management teams impact the research which was based on the “upper echelon“ theoretical concept, from the internal organizational level transcending to branch, country, international levels and encompassing different types of organizations – both in business and public sectors, and also organizations that are in different life cycle stages. On the basis of accomplished analysis, new problematic aspects of TMT have been revealed, which require more research.> 


2005 ◽  
Vol 24 (8) ◽  
pp. 683-705 ◽  
Author(s):  
Carmen Camelo‐Ordaz ◽  
Ana Beatriz Hernández‐Lara ◽  
Ramón Valle‐Cabrera

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