Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
28Activity
0 of .
Results for:
No results containing your search query
P. 1
Top Management Characteristics

Top Management Characteristics

Ratings: (0)|Views: 3,219 |Likes:
Published by siscani
This paper explores the influence of top management characteristics on the process of making Strategic Decisions (SDs). Empirical testing is based on a sample of 70 SDs in industrial enterprises, using a combination of interviews, questionnaires and archival data. The results suggest that (a) the characteristics of both the top management team (TMT) and the CEO influenced the strategic decision-making process, but the former had more influence, and
(b) the TMT and CEO influenced different dimensions of the process. The single most important factor was the TMT’s “aggressiveness” (decision to beat the competition, attitude to innovation, risk propensity). Results lend support to the “upper echelons” perspective, but suggest that in studying strategic decision-making processes both CEO and TMT characteristics should be considered. Such an approach should provide a more reliable view of strategic processes and the evolving dynamics.
This paper explores the influence of top management characteristics on the process of making Strategic Decisions (SDs). Empirical testing is based on a sample of 70 SDs in industrial enterprises, using a combination of interviews, questionnaires and archival data. The results suggest that (a) the characteristics of both the top management team (TMT) and the CEO influenced the strategic decision-making process, but the former had more influence, and
(b) the TMT and CEO influenced different dimensions of the process. The single most important factor was the TMT’s “aggressiveness” (decision to beat the competition, attitude to innovation, risk propensity). Results lend support to the “upper echelons” perspective, but suggest that in studying strategic decision-making processes both CEO and TMT characteristics should be considered. Such an approach should provide a more reliable view of strategic processes and the evolving dynamics.

More info:

Published by: siscani on Dec 01, 2008
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

04/08/2013

pdf

text

original

 
Centre for Marketing
TOP MANAGEMENT CHARACTERISTICS ANDSTRATEGIC DECISION PROCESSES
Vassilis PapadakisPatrick BarwiseCentre for Marketing Working PaperNo. 96-101March 1996
Vassilis Papadakis is an EC Post Doctoral Fellow at London Business School. Patrick Barwise isProfessor of Management and Marketing, and Director of the Centre for Marketing, at LondonBusiness School. An earlier version of this paper was presented at the British Academy of Management Conference, Sheffield, 11-13 September, 1995. This paper received valuablesupport from an E.U. Post Doctoral Fellowship.
London Business School, Regent's Park, London NW1 4SA, U.K.Tel: +44 (0)171 262-5050 Fax: +44 (0)171 724-1145VPAPADAKIS@lbs.ac.uk http://www.lbs.ac.ukCopyright
 ©
 
London Business School 1996.
 
Top Management Characteristics andStrategic Decision Processes
ABSTRACT 
This paper explores the influence of top management characteristics on the process of making Strategic Decisions (SDs). Empirical testing is based on a sample of 70 SDs inindustrial enterprises, using a combination of interviews, questionnaires and archival data. Theresults suggest that (a) the characteristics of both the top management team (TMT) and theCEO influenced the strategic decision-making process, but the former had more influence, and(b) the TMT and CEO influenced different dimensions of the process. The single mostimportant factor was the TMT’s “aggressiveness” (decision to beat the competition, attitude toinnovation, risk propensity). Results lend support to the “upper echelons” perspective, butsuggest that in studying strategic decision-making processes both CEO and TMTcharacteristics should be considered. Such an approach should provide a more reliable view of strategic processes and the evolving dynamics.
 
1
1. INTRODUCTION
Two important themes of strategy research over the last ten years have been (a) the role of 
top management
(Bantel 1993; Hambrick and Mason 1984; Lewin and Stephens 1994) and(b) the
process
of making strategic decisions (Hart and Banbury 1994; Lu and Heard 1995;Rajagopalan et al. 1993). Since Hambrick and Mason’s (1984) influential paper on “upperechelons”, much emphasis has been placed on the role and significance of top management (i.e.the CEO and/or top management team). This research stream has mainly focused on theinfluence of top management on: (i) corporate strategies (Miller and Toulouse 1986;Finkelstein and Hambrick 1990), (ii) innovation
 
(Bantel and Jackson 1989), (iii) performance(Haleblian and Finkelstein 1993; Norburn and Birley 1988; Eisenhardt and Schoonhoven 1990;Smith et al. 1994), (iv) organisational structure (Miller and Droge 1986), and (v) planningformality (Bantel 1993).There has been little empirical work on the link between these two themes, ie topmanagement (TM) and the process of making SDs. As Rajagopalan et al. (1993, pp 364) stressin a recent review: "
research relating organisational factors such as .... top management team(TMT) characteristics to strategic decision processes is limited 
". Others have argued alongsimilar lines (Bantel 1993; Huff and Reger 1987; Lewin and Stephens 1994; Smith et al. 1994).Moreover, as we discuss shortly, the few studies which have been done on the links betweenTM characteristics and SDM processes have produced mixed results. The influence of TMtherefore remains unclear. If upper echelons theory is to advance our knowledge of the role of the CEO and the TMT we need a better understanding of their impact (if any) on SDMprocesses and the underlying characteristics which are important (Smith et al. 1994).The study reported here aims to clarify some important aspects of this influence. The mainquestion it explores is: “Does the CEO and/or the TMT influence the making of actual SDs,and if so is it the CEO or the TMT which has most influence on the process?”. A secondary

Activity (28)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Ch Gohar liked this
Aranrajh Dookoo liked this
Aranrajh Dookoo liked this
fiamanallah liked this
abuzabi liked this
hajizubair liked this

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->