The Moderating Role of Top Management Team Diversity in Strategic Change in a Multicultural Context

Díaz‐Fernández, M. Carmen; González‐Rodríguez, M. Rosario; Simonetti, Biagio

doi:10.1111/emre.12306

Cited by 22 publications

(12 citation statements)

References 113 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The predominant focus in upper-echelons research has been on how executives' backgrounds affect strategy and outcomes (Díaz-Fernández et al 2018;Kaplan 2011). This study, in contrast, looked at the effect of TMTs' experiential makeup on the cognitive search that precedes strategy and outcomes.…”

Section: Discussionmentioning

confidence: 99%

Experience maketh the mind? Top management teams’ experiential background and cognitive search for adaptive solutions

Sidhu

Heyden

Volberda

et al. 2019

Industrial and Corporate Change

View full text Add to dashboard Cite

The adaptive strategies of firms depend on executives’ forward-looking cognitive search. We examine how cognitive search is affected by the formative experiences of the executives making up a firm’s top management team (TMT). Drawing on research on adaptive search, cognition, and the upper echelons, we examine the extent to which educational level, diversity of functional expertise, and the length of industry tenure of TMT members will be associated with whether cognitive search centers more on proximal or on distal solutions. Analysis of 10 years of panel-data from US companies shows that whereas a TMT’s educational level does not seem to affect cognitive search, diversity of functional expertise does so, as predicted, and industry tenure does so in a manner we had not fully anticipated. Additional analysis also shows that whether cognitive search is proximal or distal is associated with whether firms enter into related or unrelated new product-markets. The article discusses the implications of these findings.

show abstract

Section: Discussionmentioning

confidence: 99%

Experience maketh the mind? Top management teams’ experiential background and cognitive search for adaptive solutions

Sidhu

Heyden

Volberda

et al. 2019

Industrial and Corporate Change

View full text Add to dashboard Cite

show abstract

“…In order to properly understand the strategic plan of a company in terms of initiating and implementing measures for the adaptation of business structures in a dynamic and unpredictable environment, it is necessary to talk about change management strategy within the context of having a functional strategy, one that is subordinate to the general corporate strategic goals and principles [12], while having its own set agenda for a determined time period [13]. The aforementioned strategy should therefore conform with (or be developed within the set boundaries of) the general corporate strategy [14] in order to:…”

Section: Source: Authorsmentioning

confidence: 99%

Change Management Strategy for the Activities of Business Organizations

2021

View full text Add to dashboard Cite

Within the context of modern management, business organizations need to realize that everything around them is changing: the rules of the game, the participants, the scale of activities, and the size of markets. In other words, nothing is constant. The changes may be both local and global, whereby developments may affect different fields: executive and administrative, technical and economic, social and public, informative and analytical. Managerial decisions taken inside an organization under the aforementioned conditions require sound theoretical grounds for selection in terms of potential risks and current and future economic effects. Traditionally, long-term decisions on setting goals for an activity of a business organization and determining ways to achieve them are considered within the framework of strategic planning, as a result of which a development strategy is formed. However, under current circumstances, the place and role of change management in the strategy of business organizations requires reinterpretation. The academic originality of this contribution lies in the specification of a concept for change management with regards to the activities of business organizations based on a strategic approach and adaptation to dynamically changing market conditions, including long-term planning. As part of the study, the essence of a strategic approach to change management regarding the activities of business organizations is considered, the principles of building a change management strategy are highlighted, and an algorithm for its development and implementation is proposed.

show abstract

“…According to Hambrick (2007), CEOs act on the basis of their personal interpretations of given situations, and these interpretation are a function of their experience. Studies grounded in upper echelons theory contend that demographic characteristics such as age (Wiersema & Bantel, 1992;Díaz-Fernández et al, 2019;Richardet et al, 2019), tenure , experience Zhang, 2019), educational level (Shahab et al, 2020), functional background , gender .) and ethnicity (Carter et al, 2010) are important proxies for cognitive bias, and that these characteristics have an impact upon the ability to make decisions that enhance firm performance.…”

Section: Theory and Hypotheses Developmentmentioning

confidence: 99%

Effect of Chief Executive Officer’s Characteristics on Capital Structure of Publicly Listed Firms in Kenya

Mutai¹,

Tarus²,

Komen³

et al. 2020

RJFA

View full text Add to dashboard Cite

Based on a panel of publicly listed firms in Kenya over the period of 2008 to 2014, we examined if Chief Executive Officer's Characteristics affects capital structure. CEO tenure, CEO gender and CEO age and CEO education were used as independent variables while the capital structure was used as the dependent variable of the study. The study used upper echelon theory, trade-off theory and agency theory. Majorly, descriptive statistics, Pearson correlation analysis and panel regressions were performed. Panel regression analysis was used to determine the effect of CEO characteristics on capital structure. CEO tenure had a negative and significant effect on capital structure, CEO age had a positive and significant effect on the capital structure, CEO gender and CEO education indicated a negative and significant effect on capital structure respectively. The study indicates that there is an association between CEO characteristics and capital structure of listed firms in Kenya. It is therefore instrumental for firms to appoint their CEOs based on the duration they have served the company, CEOs to sit in their position for a longer period of time and those who have the requisite knowledge and experience hence they can be tasked with making important decisions pertaining firms' financing.

show abstract

The Moderating Role of Top Management Team Diversity in Strategic Change in a Multicultural Context

Cited by 22 publications

References 113 publications

Experience maketh the mind? Top management teams’ experiential background and cognitive search for adaptive solutions

Experience maketh the mind? Top management teams’ experiential background and cognitive search for adaptive solutions

Change Management Strategy for the Activities of Business Organizations

Effect of Chief Executive Officer’s Characteristics on Capital Structure of Publicly Listed Firms in Kenya

Contact Info

Product

Resources

About