upper echelons theory
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2022 ◽  
Vol 12 ◽  
Author(s):  
Yongtao Zhou ◽  
Yi Zhou ◽  
Li Zhang ◽  
Xu Zhao ◽  
Weijing Chen

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chenxuan Chen ◽  
Abeer Hassan

Purpose This paper aims to contribute to the discussion on the executives’ team and firm performance by investigating the relationships between executives’ compensation, management gender diversity and firm financial performance in growth enterprises market (GEM) listed firms in China. Design/methodology/approach Data are collected from 461 companies listed on GEM boards during the period from the year 2016 to 2018. Specifically, executives’ compensation and female executives are set as the independent variables, and the proxy selected of corporate performance is Tobin’s Q ratio. Findings The results show that the correlation between corporate performance and executive cash payment is not significant, while executives’ equity-based compensation shows a significant positive correlation with firm performance. In addition, the participation of female executives is negatively associated with firm performance. Research limitations/implications The results have practical implications for governments, policymakers and regulatory authorities, by indicating the importance of women to corporate success. In particular, the findings of this paper emphasize the specific background of GEM in China and provide empirical support for the value of women’s participation in corporate governance. In addition, the finding on the relationship between executive compensation and corporate performance of GEM listed companies provides guidance for the establishment of a performance compensation system of GEM listed companies in China. Originality/value This paper provides new evidence for the current literature of executive team and corporate performance. This is the first paper to adopt triangulation in theories from different disciplines including optimal contractual approach, managerial power approach as new perspectives of agency theory, upper echelons theory, motivational-hygiene theory and women leadership style theory. The results will contribute to provide guidance for enterprises to formulate an efficient compensation system and build a reasonable senior management team structure.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ge Ren ◽  
Ping Zeng

PurposeDrawing on the gender self-schema theory, upper echelons theory and the literature on international business, this study aims to examine the impact of board gender diversity on firms' internationalization speed.Design/methodology/approachIn this study, secondary data of 886 listed Chinese manufacturing firms from 2009 to 2018 are studied using the ordinary least squares regression model as the baseline method, an instrumental variable method is adopted for endogeneity control and both fixed and random effect models are adopted for the robustness test.FindingsBoard gender diversity reduces firms' internationalization speed, and the negative effect between board gender diversity and internationalization speed is stronger when the average age of female directors is older and weaker when female directors have international experience or financial background.Practical implicationsFirst, Chinese firms need to increase or decrease board gender diversity to match the board to firms' internationalization strategy. Increasing board gender diversity may be a more appropriate choice for firms that are expanding rapidly internationally, and vice versa. Second, when introducing female directors to international firms, it is essential to address other characteristics of these directors beyond their gender.Originality/valueFirst, the authors contribute to the literature on board gender diversity using Chinese manufacturing firms as our research sample, which provides new insights into the economic consequences of increasing the number of female directors. Second, this research contributes to the literature on firms' internationalization speed. Third, the authors capture in more detail the economic consequences of increasing board gender diversity in the context of China.


2021 ◽  
Vol 5 (3) ◽  
pp. 74-85
Author(s):  
Joan Anyango Oracha ◽  
◽  
Martin Ogutu ◽  
Peter K’Obonyo ◽  
Medina Twalib ◽  
...  

In developing countries, International Non-Governmental Organizations (INGOs) have taken active and complementary roles in sustainable human development. Despite the role of INGOs in development, the issues of sustainability, availability of funds, and supportive leadership have remained a major challenge in developing countries. The concept of competitive advantage has been recognized as a central building block in strategic management and an important precedent to organizational performance. Competitive advantage is a deliberate effort by the organization to align its internal conditions and capabilities with changes in the external environment. This study sought to establish the mediating effect of competitive advantage on the relationship between strategic leadership and performance of international non-governmental organizations in Kenya The study was anchored on strategic leadership theory, upper echelons theory and resource-based view theories. For methodology, descriptive cross-sectional survey design covering 277 respondents was adopted. Semi structured questionnaires were used to collect data. The study findings indicated that data collection tool/questionnaire was reliable as Cronbach alpha was greater than 0.7 for all variables. The results indicated a significant mediating effect of competitive advantage on the relationship between strategic leadership and performance of international non-governmental organizations in Kenya. This means that the influence of strategic leadership on performance is indirect through competitive advantage. The study concluded that both competitive advantage and strategic leadership concurrently influence organizational performance positively. It is recommended that international non-governmental organization must be able to identify their competitive advantage. Keywords: Strategic Leadership, Competitive Advantage, Performance, International Non-Governmental Organizations & Kenya.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hang Ngoc My Le ◽  
Brendan Thomas O’Connell ◽  
Maryam Safari

Purpose Drawing from Upper-Echelons Theory (UET), this paper aims to examine whether an increasing number of board members studying and working overseas, especially in Anglo countries, provides some impetus for increased corporate environmental disclosures (CED) in Vietnam. Design/methodology/approach This study used quantitative data collection and analysis. The data collection involved a content analysis of annual, sustainability and integrated reports to capture the quality and quantity of CED. The authors subsequently developed ordered probit models to quantitatively test the hypotheses. Findings The authors find that board members studying in Anglo countries positively impact firms’ levels of CED in emerging economies. However, overseas work experience is found to be an insignificant explanatory variable. Further, the findings suggest that, in Vietnam, Chairs appear to be more influential than chief executive officers in affecting CED levels. Practical implications Despite the positive influence of overseas study, the authors find overall levels of CED in Vietnam remain relatively low. This suggests the necessity of dialogue about potential reform in CED policies, which could involve the introduction of mandatory reporting requirements. In addition, to enhance sustainability disclosures, shareholders should appoint board members who possess international qualifications. Originality/value This study adds to the literature exploring the impacts of Anglo cultural traits of board members on CED levels, within an economy transitioning from a communist ideology to a market-oriented system context. The connection between international study and cultural norms, beliefs and traditions in these countries and their positive influence on directors’ values and attitudes towards CED have not yet been studied. The study also extends UET by examining the potential positive influence of different national contexts on board members’ education levels.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rosalia Santulli ◽  
Carmen Gallucci ◽  
Mariateresa Torchia ◽  
Andrea Calabrò

PurposeDrawing on upper echelons theory (UET) and arguments from behavioral theory of the firm, this paper aims to contribute to the debate on family involvement-performance relationship, by considering the mediating role of the propensity towards merger and acquisition (M&A) and the moderating role of performance feedback.Design/methodology/approachThe hypotheses are tested by applying a moderated mediation analysis on a sample of 111 German family firms. First, a mediation model is run to verify the mediation role of the propensity towards M&A; then, to evaluate the magnitude of the mediation at different values of the moderator (performance feedback), conditional indirect effects are tested using normal-theory standard errors and bootstrapping procedure.FindingsThe main findings suggest that a higher percentage of family members sitting in TMT is related to better performance and that this effect is mediated by the propensity towards M&A. Furthermore, findings also show that a higher percentage of family managers is positively related to the propensity towards M&A and, in turn, exerts a positive effect of firm performance, especially when performance feedback is negative.Practical implicationsThe paper suggests to family firms' managers that when performance feedback is negative, a riskier behavior, such as M&A, could represent a way to improve firm performance.Originality/valueThe paper provides a full application of UET to the context of family firms, offers the point of view of TMT, instead of that of ownership, to study the propensity towards M&A in family firms and goes beyond the rational view to explain family managers' risk-taking behaviors.


2021 ◽  
Vol 47 (1) ◽  
pp. 56-68
Author(s):  
David B. Wangrow ◽  
Evan Schwartz ◽  
Margaret Hughes-Morgan

This study applies upper echelons theory associated with executive dismissal and power to examine the relationships of performance and four types of executive power— structural, prestige, expert, and governance concentration—with dismissal. Using the context of National Collegiate Athletic Association college basketball, in which coaches are completely responsible for strategies and human capital acquisition and retention, a curvilinear relationship between performance and dismissal is found. Significant relationships for prestige and expert power with dismissal are also found, but the “honeymoon period” is longer than prior studies of executive and coach dismissal have shown. Surprisingly, concentrated governance is found to be negatively associated with the likelihood of dismissal.


2021 ◽  
Vol 12 ◽  
Author(s):  
Zhuolin She ◽  
Quan Li ◽  
Jilei Zhou

Based on upper echelons theory, the current study examines how and under what conditions CEO workaholism influences firm performance. Specifically, we propose that CEO workaholism is positively related to collective organizational engagement, which has a subsequent positive effect on firm performance. Top management team (TMT) power distance would moderate the relationship between CEO workaholism and collective organizational engagement in such a way that workaholic CEOs are more likely to stimulate collective organizational engagement when TMTs have a high level of power distance. Findings based on multi-source, multi-wave data from a sample of 122 CEOs in state-owned enterprises and their corresponding TMT members supported the hypotheses. This study is an initial attempt to empirically examine the effects of leader workaholism at the firm level, which answers the call for more research into the intersection of workaholism and leadership and carries implications for organizational management practices.


Author(s):  
Laura Sánchez Pulido ◽  
Jordi Moreno Gené ◽  
José Luis Gallizo Larraz

AbstractThis paper examines the influence of CEO characteristics on the internationalization of family businesses. The study is based on Upper Echelons Theory, where organizational performance is related to the cognitive foundations and values of the managers of the family business. This work aims to contribute to the construction of a link between research in management teams and theoretical studies on family businesses. Using Probit and Tobit regression analyses on a sample of 1005 Spanish family businesses, this study demonstrates that CEOs with some specific characteristics are more likely to adopt some strategies for the internationalization of a company. For example, the type of studies undertaken by the CEO or the existence of a consensual strategic plan within the family business are positively linked to the adoption of an exportation strategy. Also, previous professional experience outside the family business or being a first-generation family member contributes to going international via establishing strategic alliances, while being a tenured CEO shows a positive effect on an internationalization strategy based on direct investment, but a negative effect on the establishment of strategic alliances. Finally, a family member CEO negatively affects an internationalization strategy based on direct investment. The results also affirm that the internationalization strategy is determined by the size of the business and the sector in which it operates.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simona Cosma ◽  
Rossella Leopizzi ◽  
Lorenzo Nobile ◽  
Paola Schwizer

PurposeThe purpose of this paper is to shed light an important limit of the Non-Financial Reporting Directive (NFRD) in pursuit of its substantial purpose, which is to achieve sustainability and contribute to achieving the objectives of United Nation (UN) Agenda 2030; the paper also suggests how to overcome those limits.Design/methodology/approachThe study used a survey of board members of listed and un-listed Italian companies. Data were analysed using an ordered probit model.FindingsThe results show that a greater involvement of a board member in the non-financial reporting process is associated with a stronger commitment towards sustainable development. Specifically, the involvement in materiality assessment is positively associated with more proactive behaviours towards sustainability.Research limitations/implicationsThe use of self-reported assessments on beliefs and behaviours and the application of an online survey are methodology limitations of the study. Regarding theory, the study contributes to the literature on corporate governance and sustainability, integrating upper echelons theory, which focuses on how individual attributes influence a firm's strategies and governance, with research on how leadership practices can have a positive impact on corporate sustainability goals.Practical implicationsThe paper underscores the opportunity for policymakers to increase the effectiveness of the NFRD through deeper involvement of the board members in the process of non-financial reporting. The results could also be of interest to governance bodies in terms of defining a board's tasks and practices to encourage the adoption of behaviours oriented towards a stronger engagement in sustainable issues.Originality/valueThis is the first study to provide evidence of the relationship between individual directors' tasks and behaviours, non-financial reporting and Sustainable Development Goals (SDGs). This study highlights some of the limits of the NFRD, even after the public consultation to revise it, and suggests how to overcome these limits.


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