How does top management team composition matter for continual growth? Reinvestigating Penrose’s growth theory through the lens of upper echelons theory

Chen, Wein Hong; Kang, Min Ping; Butler, Bella

doi:10.1108/md-02-2017-0147

Cited by 28 publications

(18 citation statements)

References 72 publications

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“…5. Discussion and implications Following the increasing attention being paid to Taiwan and China, many management studies have sought to identify the generalities (or differences) between the business behaviours preferred in Taiwan and China (Chen et al, 2019;. Extending the previous studies, this paper explores the strong and complementary relationships between cultural and creative industries and international trends of global competition to demonstrate the differences observed between Taiwan and China.…”

Section: Measurement Modelmentioning

confidence: 94%

Creating competitive advantage through network ties, entrepreneurial orientation and intellectual capital

Liu¹

2020

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PurposeThis study attempts to explore how a cultural and creative firm's competitive advantages can be maintained through the accumulation of intellectual capital and entrepreneurial orientation. Another goal of this study is to identify the different mechanisms of network ties to explore the interrelationships between organizational capital and competitive advantage in the context of Taiwan and China.Design/methodology/approachStudy 1 and study 2 settings are applied, and 786 samples (i.e., 418 samples from Taiwan and 368 samples from China) are used to examine the proposed model.FindingsStudy 1 reveals that entrepreneurial orientation may influence the organization capital through human capital and social capital, which discloses the mutual relationships of intellectual capital. Further, the results of study 2 confirm the mediating role of intellectual capital that links the relationships between entrepreneurial orientation and competitive advantage. Specifically, this study also discovered that firms with more network or political ties (e.g. the Chinese samples) and business ties (e.g. the Taiwanese samples) tend to amplify the effects of organizational capital on competitive advantage.Practical implicationsAccording to our empirical results, cultural and creative managers should build a learning mechanism to encourage and develop entrepreneurial orientation and intellectual capital capacities and to provide means of understanding of customers' changing expectations. Hence, in enhancing entrepreneurial orientation and intellectual capital cultural and creative firms can develop a competitive advantage over competitors. Our findings also offer new insight to support further studies of the benefits of managerial ties for firms operating in Guanxi cultural settings in Chinese contexts.Originality/valueMost previous studies on tourism strategies have disregarded the impacts and different roles of government (e.g. political ties) and business (e.g. business ties) forces on cultural and creative firms' competitive advantages, suggesting a need to address social network issues in response to dynamic tourism environments. Therefore, this study examines differences in network ties and the differences observed between China and Taiwan in the context of Chinese cultural and creative firms.

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Section: Measurement Modelmentioning

confidence: 94%

Creating competitive advantage through network ties, entrepreneurial orientation and intellectual capital

Liu¹

2020

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“…Since the foundational text of Cohen and Levinthal (1990), absorptive capacities studies have addressed the human element. Other authors also consider individuals as transforming agents when it comes to the absorption of external knowledge (Zahra & George, 2002;Jansen et al, 2005;Todorova & Durisin, 2007;Camisón & Fóres, 2011;Hotho et al, 2012;Chen et al, 2019). The present findings are in agreement with these authors, strengthening the role of the human element in the researched context.…”

Section: Discussion Of Results and Final Considerationsmentioning

confidence: 99%

“…Despite the relevance of their relationship, we found no evidence of studies that investigated them together. We enhanced this study by introducing the managers' characteristics as a moderating factor in this relationship, since they have been shown to influence strategic decisions (Eisenhardt & Schoonhoven 1990;Boeker, 1997;Hambrick, 2007;Chen, Kang, & Butler, 2019). In a 2016 study, Bromiley and Rau claim that while the CEO's experience, tenure, and age influence the company's results, the "how" of this occurrence is a sophisticated element.…”

Section: Introductionmentioning

confidence: 99%

Managers’ Influence on Company Capabilities

Costa

Camargo

Toaldo

et al. 2019

RAM, Rev. Adm. Mackenzie

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Purpose: This study aims to verify the moderating role of managers’ characteristics, age, and tenure (time in the sector, position, company), in the relation between the realized absorptive capacity (RACAP) and the architectural marketing capabilities (CAM). Originality/value: The present study considers the human element as a factor that affects the relations between the capacities of the company. It contributes theoretically to help understand what can impact the formulation and implementation of marketing strategies and theoretically strengthen the role of the human element. As a practical contribution, it has been shown that it is not enough to seek external knowledge, it is necessary that it is transformed and then used effectively in the design and implementation of marketing strategies. Design/method/approach: Quantitative research, with transverse temporal data collection. This study empirically tested the hypotheses based on a sample of 343 marketing managers from Brazilian manufacturing industries. Data were collected through a survey. Data were processed by means of modeling of structural equations in AMOS software. Findings: The characteristics of managers (age and tenure) moderate the relationship between a part of RACAP (knowledge transformation) and CAM (architectural marketing capability). More experienced managers should be valued because it has been proven that in this sector, they make a difference when it comes to transforming knowledge and using it in their strategies.

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“…This is because a company’s TMT possesses the knowledge and skills that cannot be easily imitated, transferred, or completely replaced by competitors (i.e., human capital). The human capital owned by its senior management team is an important source of a company’s competitive advantage, and The highly complex knowledge held by members of TMTs is essential for a firm’s success ( Chen et al, 2019 ; Roh et al, 2019 ). A well-functioning TMT can effectively balance the interests of stakeholders and focuses on achieving long-term organizational goals ( Boivie et al, 2016 ).…”

Section: Introductionmentioning

confidence: 99%

The Influence of Top Management Team Human Capital on Sustainable Business Growth

et al. 2021

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Traditionally, enterprises have subscribed to the belief that top management team (TMT) human capital is of great influence to a specific entity. While long being a question of interest in the field of management, the extant literature rarely discusses the impact of TMT human capital on sustainable business growth. By examining data obtained from 535 TMT members of private enterprises in Zhejiang Province PRC, and investigate the mediating effect of decision-making quality as well as the moderating effect of founder characteristics, we analyze the positive operating mechanisms of TMT human capital on sustainable business growth. Interestingly, the single most striking observation to emerge from the empirical investigation was: (1) TMT human capital has a significant positive impact on sustainable business growth; (2) decision-making quality fully mediates the relationship between TMT human capital and sustainable business growth; and (3) the more open-minded the founders, the stronger the mediating effect of decision-making quality in the relationship between TMT human capital and sustainable business growth. This research has expanded the perspective and scope of the research on TMT human capital, and its practical usage is discussed.

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How does top management team composition matter for continual growth? Reinvestigating Penrose’s growth theory through the lens of upper echelons theory

Cited by 28 publications

References 72 publications

Creating competitive advantage through network ties, entrepreneurial orientation and intellectual capital

Creating competitive advantage through network ties, entrepreneurial orientation and intellectual capital

Managers’ Influence on Company Capabilities

The Influence of Top Management Team Human Capital on Sustainable Business Growth

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