UM
Top management team demographic-faultline strength and strategic change: What role does environmental dynamism play?
Orlando Curtae' Richard1; Jie Wu2; Livia Anna Markoczy1; Yunhyung Chung3
2019-06
Source PublicationStrategic Management Journal
ABS Journal Level4*
ISSN0143-2095
Volume40Issue:6Pages:987-1009
Other Abstract

Research summary:

Drawing on the demographic faultline perspective and the concept of attribute-specific faultlines, we investigate the effect of top management team (TMT) relationship-related (gender, age, educational level) and task-related (functional background, tenure) faultline strengths on strategic change. In a panel study (2003–2015), we find that TMT relationship-related faultline strength (especially educational-level) negatively influences strategic change whereas TMT task-related faultline strength positively affects strategic change. Environmental dynamism reduces the negative effect of TMT gender and educational-level faultline strengths on strategic change while in fact revealing a notable positive effect between TMT age-faultline strength and strategic change. Additionally, environmental dynamism strengthens the positive effects of task-related TMT faultline strength on strategic change. We offer theoretical and practical implications to both the demographic faultlines and upper echelons research domains.

Managerial summary:

Top management teams (TMTs) in firms can fracture into subgroups based on demographic characteristics (e.g., age, gender, and education level) as well as based on task-related characteristics (e.g., functional background, and tenure). We call the former relationship-related faultlines and the latter task-related faultlines. We predict and find that stronger relationship based faultlines hinders between subgroup cohesion, reducing TMTs' ability to initiate strategic change. We also predict and find that stronger task-related faultlines facilitate inter-subgroup knowledge-sharing, improving TMTs' ability to initiate strategic change. We find that environmental dynamism reduces the negative effect of most relationship-related faultlines (except age where this effect is positive) on strategic change, while strengthening the positive effect of task-related faultline strengths on strategic change.

KeywordDemographic Faultline Strength Environmental Dynamism Gender And Diversity In Organizations Strategic Change Upper Echelons Theory
DOIhttps://doi.org/10.1002/smj.3009
URLView the original
Language英语
WOS Research AreaBusiness & Economics
WOS SubjectBusiness ; Management
WOS IDWOS:000468364100006
PublisherWiley
Fulltext Access
Citation statistics
Cited Times [WOS]:30   [WOS Record]     [Related Records in WOS]
Document TypeJournal article
CollectionUniversity of Macau
Corresponding AuthorYunhyung Chung
Affiliation1.Naveen Jindal School of Management, The University of Texas at Dallas, Richardson, Texas
2.Faculty of Business Administration, University of Macau, Avenida da Universidade, Zhuhai, China
3.Department of Business, College of Business and Economics, University of Idaho, Moscow, Idaho
Recommended Citation
GB/T 7714
Orlando Curtae' Richard,Jie Wu,Livia Anna Markoczy,et al. Top management team demographic-faultline strength and strategic change: What role does environmental dynamism play?[J]. Strategic Management Journal,2019,40(6):987-1009.
APA Orlando Curtae' Richard,Jie Wu,Livia Anna Markoczy,&Yunhyung Chung.(2019).Top management team demographic-faultline strength and strategic change: What role does environmental dynamism play?.Strategic Management Journal,40(6),987-1009.
MLA Orlando Curtae' Richard,et al."Top management team demographic-faultline strength and strategic change: What role does environmental dynamism play?".Strategic Management Journal 40.6(2019):987-1009.
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