Management heterogeneity,competitive interaction groups,and firm performance

One of the fundamental problems in strategic management is to map a heterogeneous set of firms in an industry into subsets of firms within which firms are homogeneous in their conduct and performance. The strategic group concept provides an answer to this intriguing question. Researchers in strategic group theory argue that firms within the same strategic group are behaviorally similar and thus tend to compete more fiercely within the group than across groups. In this paper, we focus on the question whether firms within the same group show similar decision‐making characteristics. Strategic‐choice theorists argue that top management teams in firms have substantial discretion in determining the future strategic contour of firms. Upper‐echelon theorists also argue that top managers are the strategists who set the direction of firms and the pace of competition in the industry. Further, they argue that top management team characteristics are an important element that determines the market niche in which a firm competes and the strategic direction a firm follows. Based on these arguments, we expect that there will be a significant link between grouping of firms by the patterns of competitive interactions and grouping of firms by top management team heterogeneity. Moreover, we argue that the closer the TMT heterogeneity of a firm is to the dominant heterogeneity in the competitive interaction group, the better it performs. Copyright © 2000 John Wiley & Sons, Ltd.     

Information asymmetry and investor valuation of IPOs: top management team legitimacy as a capital market signal

The condition of information asymmetry between current owners and potential IPO investors creates a context wherein the legitimacy of the top management team (TMT) may serve as a valid signal of value to potential investors. The results confirm our hypotheses that TMT legitimacy is negatively correlated with post‐IPO stock value run‐up. Our results support a previously unexplored view of the TMT as an important signal of value in IPOs, and suggest that dual benefits accrue to the TMT selection process in IPO firms. Copyright © 2005 John Wiley & Sons, Ltd.     

Utilizing the firm's resources: How TMT heterogeneity and resulting faultlines affect TMT tasks

While theory and evidence show that firms' competitive actions mediate the resource‐performance relationship, details of top managements' roles in shaping resource utilization choices have been underemphasized. We address this oversight by integrating top management team heterogeneity and any resulting faultline strength with the resource‐action‐performance model to investigate how TMT composition differentially affects the model's two linkages. Specifically, we argue that TMT heterogeneity positively affects the resource‐action linkage, yet negatively affects the action‐performance linkage. Moreover, when heterogeneity begets strong faultlines, all such positive effect is lost. Supportive evidence from the in‐vitro medical diagnostic substance manufacturing industry allows us to discuss how our findings contribute to upper echelons theory, as well as the emerging stream on resource utilization. Copyright © 2014 John Wiley & Sons, Ltd.     

Good learners: How top management teams affect the success and frequency of acquisitions

We develop new theory and hypotheses on how a firm's top management team learns from acquisition experience, why, in consequence, the composition of the team is crucial, and how this affects acquisition frequency and success. We focus on the diversity of the top team and argue that heterogeneous teams, as compared to homogenous ones, acquire less but benefit more from their acquisition experience and are more successful with their acquisitions because they avoid mis‐transferring their experiences. We tested our hypotheses on acquisition frequency and success using longitudinal data on more than 2,000 acquisitions by 25 Dutch companies over four decades (1966 to 2006). Copyright © 2013 John Wiley & Sons, Ltd.     

Effects of team inputs and intrateam processes on perceptions of team viability and member satisfaction in nascent ventures

A new venture team is a particular type of top management team neglected by the literature. This study investigated the effects of team inputs and processes on team members' perceptions of team viability and satisfaction in nascent ventures. These outcomes are important as they may be antecedents of team perseverance. The study of 51 new venture teams showed that the presence of a distinct leader was positively related to team satisfaction, while member diversity in educational backgrounds was positively related to perceived team viability. Intrateam processes of social integration and open communication were positively related to both perceived team viability and member satisfaction. Copyright © 2006 John Wiley & Sons, Ltd.     

基于人力资本的高层管理团队认知特征对战略一致性理论模型构建研究

近来高层管理团队认知成为学者们研究的热点,但关于认知与战略一致性的研究甚少。要打开高层管理团队认知的黑盒子,探讨高层管理团队认知特征与战略一致性的作用机制,必须结合当今多变环境的时代特征与中国的具体实践,进行重点、具体的分析。而这一研究的突破点就是基于人力资本的视角,来探讨高层管理团队认知特征与战略一致性之间的作用机制。通过文献研究,构建理论模型,为进一步的实证研究打下基础。     

大屯选煤厂班组管理工作的实践与思考

针对煤炭企业的管理粗放和缺乏竞争力,强调了基层管理的重要性。并以大屯选煤厂为例,分析了班组管理工作存在的问题,介绍了在开展五好班组创建活动中的主要做法,通过做好班组管理,达到全员精细,实现管理创效的方法途径。     

Performance effects of top management team demographic faultlines in the process of product diversification

Expanding into new product areas is an important part of the growth strategy of many firms, but there is still more to learn about how it affects firm performance. We believe that as the top management team (TMT) is responsible for coordinating product expansion, looking there can yield valuable clues. We argue that diversification entails significant additional information processing and that this strains top managerial resources. We hypothesize that task‐related faultlines within the TMT may help it cope with product expansion while bio‐demographic faultlines may hinder it. We find support for these hypotheses on a longitudinal sample of 2,730 expansion steps made by 61 German firms between 1985 and 2007: task related faultline strength increases performance when diversifying, while bio‐demographic faultline strength decreases it. Copyright © 2012 John Wiley & Sons, Ltd.     

高层管理团队认知研究综述

自1984年Hambrick和Mason提出高层梯队理论以来,学术界掀起了对高层管理团队研究的热潮,近来对高层管理团队认知成为学者们研究的热点并取得了大量的研究成果。通过对这些成果进行综述,探讨认知派别、共享心智模型、社会认知等认知理论对企业战略决策进而对组织绩效的影响,分析已有研究中存在的局限并提出从人力资本的视角,将高层管理团队的认知特征与人力资本的产权与积累状况联系起来,明确高层管理团队认知特征与战略决策之间的作用机制。     

Rookies and seasoned recruits: How experience in different levels,firms, and industries shapes strategic renewal in top management

Research summary : This study explores the effect of knowledge integration on strategic renewal. In particular, it examines how executives from different levels and sources influence renewal when added to top management teams (TMT). In contrast to prior work, the study hypothesizes and finds that new outside rookies—those new to top management and the firm—are associated with higher firm growth than other types of executives. We also find that seasoned outsiders—those with prior TMT experience outside the focal industry—contribute to growth only when the existing TMT has a long tenure. The results suggest that the ability of the TMT to integrate new members varies by executive type and has an important effect on incremental strategic renewal. Managerial summary : Conventional wisdom holds that firms are better off hiring those who can demonstrate prior experience and skill in tasks as close as possible to the job. In the realm of the top management team (TMT), however, we find that many firms benefit from hiring rookies from other firms who are new to the top management team level. These candidates bring useful knowledge of the operations of competitors and other firms, and they are easier to socialize and integrate with the existing team. While more experienced senior leaders may bring valuable strategic knowledge, this study suggests that only top management teams with long shared experience can weather the disruption that they cause to realize the potential benefits. Copyright © 2016 John Wiley & Sons, Ltd.     

Top management team incentive heterogeneity,strategic investment behavior,and performance: A contingency theory of incentive alignment

Research summary : We develop and test a contingency theory of the influence of top management team (TMT) performance‐contingent incentives on manager–shareholder interest alignment. Our results support our theory by showing that although TMTs engage in significantly higher levels of acquisition investment when their average incentive levels increase, investors' responses to those large investments are generally negative. More importantly, however, we further find that within‐TMT incentive heterogeneity conditions that effect, such that investors evaluate TMTs' large acquisition investments more positively as the variance in those top managers' incentive values increases. Thus, within‐TMT incentive heterogeneity appears to increase manager–shareholder interest alignment, in the context of large acquisition investments. Managerial summary : We find that as the average value of TMTs' incentives increase, relative to their total pay, they invest more in acquisitions and investors' respond negatively to the announcement of those deals. However, we further show that investors respond more positively to acquisitions announced by TMTs whose members' incentive values vary (some TMT members hold higher incentives and others hold lower). Results imply that when TMT members hold differing incentives levels, they approach investments from divergent perspectives, scrutinize those investments more heavily, and make better decisions, relative to TMTs with similar incentives. They also suggest that boards seeking tighter manager–shareholder interest alignment may benefit from introducing variance into TMT members' incentive structures, as doing so appears to create divergent preferences that can improve team decision making. Copyright © 2016 John Wiley & Sons, Ltd.     

The impact of U.S. company internationalization on top management team advice networks: a tacit knowledge perspective

This study surveys 37 U.S. multinational corporations (MNCs) to examine the effect of internationalization on one dimension of the top management team’s (TMT’s) character: international business advice network density. This study draws on international business (IB) theory, the resource‐based view of the firm, and philosophy of science and its view of tacit knowledge. Results show that both the firm’s internationalization extent, and the interdependence that exists across its country–market activities, are positively related to the TMT’s IB advice network density. As the extent of the MNC’s business outside the United States grows and the linkages among its IB units intensify, the demand for IB expertise within the TMT increases, TMT members share each other’s knowledge of IB more extensively and the TMT’s IB advice network density increases. Copyright © 1999 John Wiley & Sons, Ltd.     

Top management team turnover as an adaptation mechanism: The role of the environment

Based on an organizational adaptation framework, this study examines the influence of three environmental dimensions–munificence, stability, and complexity–on top management team turnover. In addition to investigating the direct influence of these environmental dimensions, indirect effects through firm performance and strategic change are also examined; the indirect effect of environmental complexity through demographic heterogeneity is also studied. Path analysis indicates that the direct effects of the three environmental dimensions predominate. Indirect effects were nonsignificant except for the effect of instability and munificence through strategic change. By expanding the team turnover context to include environmental and strategic dimensions, in addition to previously examined performance and heterogeneity factors, this study enhances our understanding of managerial turnover as a form of organizational adaptation.     

团队建设研究的新思路:边界管理的视角

团队建设是组织理论研究的一个重要问题。本文通过文献回顾,评价了以往团队建设研究的三种视角;在澄清边界、边界活动和边界管理内涵的基础上,考察组织变革中边界社会化和边界活动向内迁移的趋势,并指出这种趋势对边界视角的团队建设研究的启示;界定团队内向边界管理和外向边界管理的概念,分析内向与外向边界活动既竞争又相互支持与互补的协同关系,并提出通过内向与外向边界管理的动态平衡机制实现高效团队的措施;指出团队边界管理需进一步研究与探讨的问题。     

The role of technical expertise in firm governance structure: evidence from chief financial officer contractual incentives

We provide evidence that the presence of technical expertise in firm governance structure reduces reliance on contractual incentives to control the potential agency problem for executives whose responsibilities require specialized knowledge. Specifically, we find that firms with financial expertise in the form of a board finance committee, or a chief executive officer with a financial background, tend to use lower levels of incentive‐based compensation for their chief financial officers. Our findings suggest financial experts provide stronger oversight and/or direction with regard to firm financial policies and strategies, thereby allowing firms to reduce reliance on incentive compensation. Our study provides insight into the role of technical expertise and board committees in firm governance, and into the benefits of common functional expertise within top management teams. Copyright © 2010 John Wiley & Sons, Ltd.     

Top management team diversity,group process,and strategic consensus

This study integrated concepts from upper echelons, group process and social cognition theories to investigate how demographic diversity and group processes influence strategic consensus within the top management team (TMT), where strategic consensus is defined as the degree to which individual mental models of strategy overlap. Data from 76 high‐technology firms in the United States and Ireland were used to examine three alternative models. The results showed that while demographic diversity alone did have effects on strategic consensus the overall fit of the model was not strong. Adding two intervening group process variables, interpersonal conflict and agreement‐seeking, to the model greatly improved the overall relationship with strategic consensus. For the most part, TMT diversity had negative effects on strategic consensus. The model with superior fit showed both direct and indirect effects of diversity on strategic consensus. Copyright © 1999 John Wiley & Sons, Ltd.     

高层管理团队隐性人力资本研究

近20余年来,学者们过多地关注高层管理团队教育背景、任期、年龄和性别等显性变量及其与企业战略、绩效的关系,而忽略了隐藏在数据背后的决定变量.与显性人力资本相比,隐性人力资本要素更具有本源性和基础性,是创新的源泉,是一切显性知识的基石.本文试图对高层管理团队隐性人力资本进行界定,为高层管理团队的未来研究指明了新的研究视角和方法,具有开创意义.     

QC小组在线管理系统的研发与应用

QC小组活动注重方法和程序,其推进组织过程和PDCA活动程序均符合信息系统流程设计的特点。介绍了QC在线管理系统。通过研发QC在线管理系统,实现了小组注册、小组管理、活动记录、成果发布等功能,方便QC小组活动的开展,对调动员工积极参与质量管理、质量改进起到了促进作用。     

Direct and interaction effects of top management team and board compositions on R&D investment strategy

This paper examines why firms differ in levels of R&D investment intensity by developing and testing a theory of direct and interaction effects of top management team and board outsider composition on R&D intensity. The theory is tested in a longitudinal sample of technology‐intensive firms that completed an initial public offering. The results indicate that both top management team composition and board composition have direct and additive effects on R&D investment intensity. Also, monitoring by outsider directors does not constitute a universally effective governance mechanism with regard to a firm's R&D investment strategy. Firms opt for lower levels of R&D investment intensity when their outsider‐rich board interacts with a team of managers who have high levels of (1) firm tenure, (2) shared team‐specific experience, or (3) functional heterogeneity. When a firm's competitiveness relies on sustained R&D investments, it is important to note these interaction effects and make adjustments to promote a healthy dialogue between managers and the board. Adjustments could be made to the management team composition (e.g., initiating management turnover to reduce firm tenure) or to the bundle of governance mechanisms (e.g., partially substituting board monitoring with other mechanisms). Copyright © 2006 John Wiley & Sons, Ltd.     

The implications of strategy and social context for the relationship between top management team heterogeneity and firm performance

This research reexamines the link between top management team (TMT) heterogeneity and firm performance. Specifically, I theorize that the effects of education, work experience, and tenure on performance will depend upon the top management team's strategic and social context. In a test of such theorizing, I find that (1) the positive relationships between TMT educational, functional, and tenure heterogeneity and performance are contingent on complexity, as indicated by a firm's international strategy and, (2) such relationships are clearly stronger in short‐tenured top management teams. The theory and results presented here provide impetus for future studies, as well as suggest to upper echelon researchers that they think more critically about the conditions under which demographic characteristics are most likely to influence organizational outcomes like performance. Copyright © 2002 John Wiley & Sons, Ltd.