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1 – 10 of 119Abstract
Purpose
External environment drives established enterprises to employ management innovation. Drawing on dual-process theories, this paper purports to investigate TMT's intuitive and rational decision-making styles as mediating roles between perceived environmental turbulences and management innovation, and explain how organizational slack play an critical moderating role.
Design/methodology/approach
SPSS 25 is used to test 120 established enterprises' top management team (TMT) samples in China, and the moderated mediation model is empirically tested by using hierarchical regression analysis and conditional process analysis.
Findings
Perceived environmental turbulences promotes management innovation. Organizational slack as contextual variable influences the relationship between technology turbulence and TMT's decision-making styles. Interestingly, only perceived technology turbulence indirectly affects management innovation through TMT's intuitive decision-making when moderated by organizational slack. However, the indirect effect from perceived market turbulence to management innovation through TMT's rational decision-making is not significant when moderated by organizational slack.
Originality/value
Based on management innovation's human agency perspective, TMT's decision-making styles have not been discussed in research on management innovation. This paper sheds light on TMT's decision-making styles as mediating role.
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Trihadi Pudiawan Erhan, Sebastiaan van Doorn, Arnold Japutra and Irwan Adi Ekaputra
This study integrates insights from upper echelon (UE) theory and the attention-based view (ABV) to analyze how digital marketing innovation might enhance organizational…
Abstract
Purpose
This study integrates insights from upper echelon (UE) theory and the attention-based view (ABV) to analyze how digital marketing innovation might enhance organizational performance in a pandemic context by addressing top management team (TMT) decision-making comprehensiveness and environmental dynamism.
Design/methodology/approach
This research utilizes a dataset collected through a questionnaire survey of 143 Indonesia Stock Exchange (IDX)-listed firms operating during the coronavirus pandemic (COVID-19). Hierarchical regression analyses were used to assess the overall hypothesis.
Findings
The authors discover that innovation in digital marketing has a beneficial effect on firm performance in a pandemic setting. The authors further find that decision comprehensiveness moderates the relationship between digital marketing innovation and firm performance with accentuated benefits in stable environments.
Originality/value
This study broadens the understanding of contextual factors that influence the performance benefits of digital marketing innovation and sheds light on the role of TMT decision comprehensiveness in enhancing the impact of digital marketing innovation on firm performance. In addition, the authors developed and tested a new digital marketing innovation measure.
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Gary Garrison, Michael Harvey and Nancy Napier
This paper examines the role of managerial curiosity as a critical factor in determining the future impact of disruptive information technologies in a global organization…
Abstract
This paper examines the role of managerial curiosity as a critical factor in determining the future impact of disruptive information technologies in a global organization. Specifically, this paper presents curiosity as a managerial characteristic that plays an important role in identifying disruptive information technologies and facilitating their early adoption. Further, it uses resource‐based theory as a theoretical lens to illustrate how managerial curiosity can be a source of sustained competitive advantage. Finally, it examines the individual decision styles that are best suited in assessing disruptive information technologies.
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Wann‐Yih Wu, Chwan‐Yi Chiang and Jeng‐Sin Jiang
The major purpose of this study is empirically to investigate the relationships among management styles of top management teams (TMT), decision‐making modes, and organizational…
Abstract
The major purpose of this study is empirically to investigate the relationships among management styles of top management teams (TMT), decision‐making modes, and organizational learning and innovation for manufacturing firms in Taiwan. Through a series of questionnaire surveys on 115 stock‐listed manufacturing firms in Taiwan, conclusions: arrives at the following firms having TMT with a higher level of empowerment and consensus management style tend to adopt a participative decision‐making mode and emphasize team learning; firms having TMT with aggressive and internal interaction characters tend to exercise higher levels of organizational learning and innovation; and firms with a higher extent of organizational learning tend to adopt participative decision‐making modes and perform better in innovation.
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The purpose of this paper is to form propositions about the relationship between the cognitive composition of the top management team and its view of the viable strategy for a…
Abstract
Purpose
The purpose of this paper is to form propositions about the relationship between the cognitive composition of the top management team and its view of the viable strategy for a firm.
Design/methodology/approach
The cognitive style of 58 members of ten top management teams were analyzed using the Myers Briggs Type Indicator (MBTI) and the strategy types based on Miles and Snow typology were defined using the paragraph approach. Descriptive statistics were used in the analysis.
Findings
Based on data from the ten top management teams in the spa industry, this study proposes that the cognitive composition of the top management team affects the strategies they prefer. Further, it is proposed that intuitive‐thinking top management teams prefer either a prospector or an analyzer strategy. A defender or an analyzer strategy is preferred by sensing‐thinking top management teams. Defining the composition of the top management team using the cognitive style is proposed to be a more promising way to explain the homogeneity or heterogeneity of the team than traditional measures such as age or education in this context.
Practical implications
For the top management teams, the results of this study emphasize the importance of knowing the cognitive composition of the top management team and especially taking it into consideration during strategic decision‐making.
Originality/value
This study extends existing research by illuminating the relationships between the cognitive composition of the top management team and the strategy type and also confirms several results drawn from previous studies concerning manager‐strategy relationships. This paper also attempts to inspire researchers to take cognitive composition into consideration when studying the influences the top management team has on a firm's strategy.
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Abraham Carmeli, Zachary Sheaffer and Meyrav Yitzack Halevi
The purpose of this paper is to examine how participatory decision‐making processes in top management teams (TMT) influence strategic decision effectiveness and firm performance.
Abstract
Purpose
The purpose of this paper is to examine how participatory decision‐making processes in top management teams (TMT) influence strategic decision effectiveness and firm performance.
Design/methodology/approach
Data from 94 TMTs are collected from structured surveys. Each firm's CEO provides data on strategic decision effectiveness, and a senior executive member of the TMT provided data on participatory decision‐making processes and firm performance.
Findings
Results show that participatory decision‐making processes in the TMT are positively associated with decision effectiveness, but there is both a direct and an indirect relationship (through decision effectiveness) between participatory decision‐making processes and firm performance.
Originality/value
This paper sheds light on the importance of joint decision‐making processes among TMT members for improving choices and enhances firm performance.
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Roberta Toscano, Gavin Price and Caren Scheepers
The purpose of this paper is to test the effects of CEO arrogance on key attitudes of a company’s top management team (TMT).
Abstract
Purpose
The purpose of this paper is to test the effects of CEO arrogance on key attitudes of a company’s top management team (TMT).
Design/method/approach
An experimental design involving a business simulation is used to test the effects of a CEO’s perceived arrogance and humility on the TMT in a boardroom setting.
Findings
The study finds that, as predicted, arrogant CEOs adversely impacts TMT engagement, cohesiveness, collaboration and consensual decision-making. Thus, the higher the level of CEO arrogance, the lower the levels of positive TMT attitudes. The study intriguingly also finds that CEOs who displayed humility also negatively influenced the attitudes of the TMT.
Research limitations/implications
The study took place in South Africa, which may limit the generalizability of the findings. The use of a laboratory experiment may affect the ecological validity of the findings.
Practical implications
The results demonstrate that a “Goldilocks” area of neutrality between arrogance and humility should be sought after by CEOs and recruiters of CEOs. If this is impossible, humble CEOs are preferable to arrogant ones.
Originality/value
This paper empirically demonstrates that arrogant leaders negatively impact their TMT followers in a boardroom environment across a number of attitudes that are keys to the success of effectively managing a corporation. The study also demonstrates that moderation is desired by followers and that CEOs being perceived as overly humble is almost as bad as being perceived as arrogant.
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This study aims to investigate the impact of top management team (TMT)'s gender diversity on corporate social performance (CSP). It sheds light on inconsistent results in…
Abstract
Purpose
This study aims to investigate the impact of top management team (TMT)'s gender diversity on corporate social performance (CSP). It sheds light on inconsistent results in literature by testing the moderator effects of chief executive officer (CEO) managerial ability and corporate governance (CG) on such impact.
Design/methodology/approach
A dynamic panel estimator is applied to an international sample of 8640 firm‐year observations from 2013 to 2017.
Findings
The author finds reliable evidence that the critical mass of at least three women leaders has a positive impact on the firm's CSP. Obtained results suggest, moreover, the deterrence effects of CEO managerial ability and CG tools (board independence, board gender diversity, the presence of a corporate social responsibility committee and family control) on the women leaders' contribution to the firm's CSP level. These results remain consistent with alternative measures for women leaders and CEO managerial ability. However, findings are lost when women achieve the CEO position, the chairperson position or both positions, which imply that men and women leadership styles are closely similar rather than different. Furthermore, women leaders' effect on CSP seems dependent (do not) on the country (industry) which a firm belongs to.
Practical implications
From a practical standpoint, the study highlights the importance of fostering the achievement of a critical mass of women leaders and the combination of CEO managerial ability – educational/professional backgrounds – and CG attributes to improve the firm's CSP. The study has important implications for investors and regulators. If investors wish to increase CSP, they should ask for more gender diversified TMTs. Furthermore, this study supports regulators in their efforts to increase senior women's quotas by providing empirical evidence of better social outcomes under leader gender diversity. The study’s evidence is also useful for companies in setting the criteria to identify CEOs who can support their strategic decisions.
Originality/value
By studying the impact female leaders have on CSP under CEO managerial ability and CG as moderators, this study is the first to display complementarities and substitutions between CEO's managerial ability and selected CG attributes in the promotion of CSP by female senior executives. Furthermore, it fills the void on how TMT's gender diversity impact CSP. In fact, while it is conventionally considered that women are more likely to engage in socially responsible activities, sensitive findings of this study shed light on the brighter side of female executives when they achieve the CEO, the chairperson position or both positions.
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Xueli Wang, Lin Ma and Yanli Wang
The purpose of this paper is to discuss the influence of different aspects of top management team (TMT) functional background on short-term performance, long-term performance…
Abstract
Purpose
The purpose of this paper is to discuss the influence of different aspects of top management team (TMT) functional background on short-term performance, long-term performance, innovation performance and oversea performance separately. This research aims to verify whether the social categorization theory and information and decision-making theory are applicable in listed companies of China’s information technology (IT) industry so as to provide key theoretical references for TMT enhancement ad corporate performance improvement.
Design/methodology/approach
This paper takes A-share listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange as its study subjects, and it chooses the data from 2004 to 2010 in all of the 105 companies in IT industry in terms of the classification of Wind Database. The stepwise multiple regressions were run utilizing the regression program in Statistical Product and Service Solutions (SPSS).
Findings
The research results show that the social categorization theory can better explain TMT’s influence on corporate performance. TMT functional heterogeneity does not contribute to improving corporate performance and shows significant negative influence on short-term performance and innovation performance in particular. Among the three basic functional backgrounds, TMTs dominated by “throughput” backgrounds show significant positive influence on short-term performance, long-term performance, innovation performance and overseas performance, and the influence turns out to be the largest among these three backgrounds. In terms of the three special professional experiences, top executives with overseas backgrounds have significant positive influence on all of short-term, long-term, innovation and overseas performances. Externally hired executives, however, would impede corporate innovation development, while those with government background would increase corporate overseas performance.
Originality/value
This paper analyzes the relationship between TMT functional background and corporate performance in a comprehensive way for the first time and then takes the lead in considering the dynamics and complexity of corporate performance as well as discussing the influence of TMT functional background on four corporate performances. This study not only supports the effect that the social categorization theory has on TMTs but also offers some inspirations on the development of China’s IT companies.
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Lin Yang, Chenwu Xu and Guoguang Wan
Drawing on the related insights from the upper echelon perspective, modern cognitive theory and path dependence theory, this paper aims to first integrate top management teams…
Abstract
Purpose
Drawing on the related insights from the upper echelon perspective, modern cognitive theory and path dependence theory, this paper aims to first integrate top management teams (TMTs) overseas experiences, research and development (R&D) strategic decision-making and innovation performance into a uniform theoretical framework and try to understand TMTs’ overseas experiences accounting for both the direct and indirect mechanisms of the variables involved within the transition economy of China.
Design/methodology/approach
The paper adopts research sample from the listed companies on the Growth Enterprises Market Board (GEMB) of Shenzhen Stock Exchange of China due to their stronger innovation consciousness. The research data are mainly from the WIND database of China, as the data issued in this database must be checked and approved by China’s legal institutions including China Securities Regulatory Commission and its authorized agencies. The samples cover different types of ownership and the vast majority of industries of China, which makes the objects a wide range of coverage and representativeness. In addition, according to suggestions of Podsakoff et al. (2003), the authors design the controlling measures from two aspects of data collection and statistical analysis to reduce the homologous error as much as possible.
Findings
Empirical results show that innovation performance is positively affected by the centrality overseas functional experience and industrial experience but negatively affected by the heterogeneity of overseas functional experience of TMT. Meanwhile, R&D intensity and modes play partially mediating effect in the relationship between TMTs’ overseas functional experience centrality and industrial experience heterogeneity and innovation performance, but for the relationship between overseas functional experience heterogeneity and innovation performance, R&D intensity leads to fully mediating effect.
Originality/value
This study contributes toward filling the gaps by elucidating the effect of TMTs’ overseas experiences on the innovation performance, identifying the mediating role of R&D strategic decision-makings in this relationship and empirically examining the acting mechanisms and paths of the variables involved in the Chinese context. In addition, practitioners could use these findings to improve their selection and training processes regarding both the top management members and the designing of the R&D strategies.
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