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Structural interdependence within top management teams: A key moderator of upper echelons predictions
Author(s) -
Hambrick Donald C.,
Humphrey Stephen E.,
Gupta Abhinav
Publication year - 2015
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2230
Subject(s) - upper echelons , moderation , interdependence , set (abstract data type) , sample (material) , psychology , business , industrial organization , marketing , knowledge management , strategic management , social psychology , computer science , sociology , social science , chemistry , chromatography , programming language
Studies of the effects of top management team ( TMT ) composition on organizational outcomes have yielded mixed and confusing results. A possible breakthrough resides in the reality that TMT s vary in how they are fundamentally structured. Some are structured such that members operate independently of each other, while others are set up such that roles are highly interdependent. We examine the potential for three facets of structural interdependence—horizontal, vertical, and reward interdependence—to resolve ambiguities regarding effects of TMT heterogeneity. Based on a sample of TMT s in technology firms, we find that the three facets of structural interdependence are potent moderators of two classic predictions: the positive association between TMT heterogeneity and member departures, and between TMT heterogeneity and firm performance . Copyright © 2014 John Wiley & Sons, Ltd.