Session 142

Top Management Teams, Senior Executives and Corporate outcomes

Track O

Date: Monday, October 5, 2015

 

Time: 13:45 – 15:00

Common Ground

Room: Plaza Court 3


Facilitator:

  • Steven Boivie, Texas A&M University

Title: As Time Goes By: The Changing Role of Informational and Social Heterogeneity of Top Management Teams

Authors

  • Emily Choi, University of Texas-Dallas
  • Virginie Lopez-Kidwell, University of Texas-Dallas
  • Livia Markoczy, University of Texas at Dallas
  • Jie Wu, University of Macau

Abstract: Time is an overlooked but important condition in the TMT heterogeneity—performance link. Drawing on upper echelon and signaling theories, we examine the moderating effect of time (the age of the firm) on the relationship between informational and social category heterogeneity of top management teams (TMTs) and firm outcomes. We argue that the costs of heterogeneity will reduce the book value of the firm, but also that this negative effect will decline over time. We also suggest that when the firm is new, investors rely on TMTs’ heterogeneity as a signal for firm quality. TMT informational heterogeneity will increase the market value of the firm, while social category based heterogeneity will decrease this value. Over time, however, investors will rely less on the signals from TMT characteristics and rely more on the firm’s track record; hence as firms age, the impact of TMT heterogeneity on market value will lessen.

Title: CEO Dominance, Perceived Environment, and Competitive Behavior: A Moderated-Mediation Model of Performance

Authors

  • Hao-Chieh Lin, Sun Yat-Sen University
  • Ming-Jer Chen, University of Virginia
  • Wan-Chien Lien, National Chengchi University

Abstract: This study examines the intricate relationships between CEO dominance, perceived environment, and competitive behavior, and the implications of those interplays for firm performance. Research results based on a large sample collected from firms in Taiwan and China show that CEO dominance exerts a negative influence on competitive aggressiveness, especially in more munificent environments, while aggressiveness produces better performance in less munificent environments. Competitive aggressiveness also plays a prominent mediating role in converting CEO dominance into firm performance. Moreover, moderated-mediation analyses show that the intermediary role of aggressiveness is more significant in less munificent environments. The research contributes to the competitive dynamics and upper-echelons theories by revealing the significance of TMT power concerns and competitive initiatives that are required for enhancing firm performance under resourceful environments.

Title: Corporate Level Effect on Innovation

Authors

  • Zdenek Necas, Western University

Abstract: Extant innovation literature accords either a passive role to corporate managers or views their involvement negatively due to their perceived interference with individual level creativity. I adapt an evolutionary perspective to the innovation process within a multidivisional firm to propose that the involvement of corporate managers allows large multidivisional companies to innovate more efficiently and at a higher quality level. In the empirical test of my theory using data from the US pharmaceutical industry I exploit a natural experiment related to the change of constituency laws in the US increasing the involvement of senior managers in organizational matters in the treated group. This study should contribute to our understanding of top-down influences on firm’s ability to commercialize its innovation effort.

Title: Top Management Team Configuration and Strategic Resource Reallocation

Authors

  • Eric C. Larson, University of Illinois-Urbana Champaign
  • Carl Vieregger, Drake University
  • Phillip Anderson, University of Illinois Urbana-Champaign

Abstract: The top management team (TMT) plays an important role in determining how resources are allocated and reallocated among the business units of the large, multi-business firm. However, firms tend to maintain spending levels from one year to the next, rather than strategically reallocating their resources. From an assessment of more than 137,000 executives and their professional titles, we develop a cluster of configuration profiles to capture the interdependence of executives by characterizing their overall functional structures. Our primary analysis indicates that firms with a balanced, functional and business unit influence within the TMT tend to strategically reallocate resources more actively than firms with functionally-focused configuration profiles.

Title: Where Do Heterogeneity Effects Come From? The Missing Link between Top Executive Tenure and Choice

Authors

  • Ithai Stern, INSEAD
  • Razvan Lungeanu, Pennsylvania State University

Abstract: This paper brings together the “upper echelons” perspective and the imprinting literature to explore where top management team (TMT) tenure heterogeneity effects come from. Our theory suggests that, when joining an organization, employees adopt the logics most prevalent in the industry at the time, and bear their imprint for the rest of their tenure in the organization. This leads us to conclude that the dispersion of tenures leads to heterogeneity of cognitions and choices because members of a common tenure cohort have all been imprinted by the same industry logic. We find support for our predictions using extensive data from the population of U.S. public pharmaceutical firms from 1992 through 2006.

All Sessions in Track O...

Sun: 08:00 – 09:15
Session 40: Strategic Leadership and Governance Expanding: Shifts and New Directions in Research
Sun: 09:45 – 11:00
Session 283: Editor Panel: Publishing Strategic Leadership and Governance Research
Sun: 11:15 – 12:30
Session 38: Big Game Hunting: Accessing and Interacting with Senior Executives for Empirical Research
Sun: 16:15 – 17:30
Session 139: Do Top Managers Matter? Expanding the Focus and Knowledge
Session 147: What Could Strategic IT Governance look like in Smart Cities?
Sun: 17:45 – 00:00
Session 324: Strategic Leadership and Governance Business Meeting
Mon: 08:00 – 09:15
Session 140: New Perspectives on the Outside Director Selection Process
Mon: 11:15 – 12:30
Session 141: Politics as Usual? Political Ideology in the Excutive Suite and Boardroom
Session 220: Perspectives on CEO Compensation
Mon: 13:45 – 15:00
Session 142: Top Management Teams, Senior Executives and Corporate outcomes
Session 215: Personality and Values in Strategic Leadership
Mon: 16:45 – 18:00
Session 216: Blame and Stigma in Response to Poor Orgnizational Outcomes
Session 218: Consequences of Top Management Attitudes and Orientations for the Firm
Tue: 08:00 – 09:15
Session 217: Leadership and Governance in Family Firms
Session 309: Looking Good and Sounding Better: Impression Management by CEOs
Tue: 11:00 – 12:15
Session 145: Strategic Leadership and Corporate Strategy
Session 214: Director Attributes, Director Actions and Director Effectiveness
Tue: 14:15 – 15:30
Session 146: Gender and Diversity in Strategic Leadership and Governance
Tue: 15:45 – 17:00
Session 219: A Tough Crowd: Critical Examinations by Owners and Stakeholders
Tue: 17:30 – 18:45
Session 144: Board Structure: What Works Best?
Session 189: Antecedents and Consequences of CEO Incentives


Strategic Management Society

Denver