Skip to main content
Frontiers of Business Research in China
Download PDF

Top management team heterogeneity and firm performance: An empirical research on Chinese listed companies

Frontiers of Business Research in China volume 1, pages 123–134 (2007)Cite this article

Abstract

An empirical study of the 2001–2002 data from 356 Chinese companies listed in the Shanghai and Shenzhen stock exchanges indicates that within the social context of China the characteristics of a firm’s top management team have a different impact on firm performance from those of foreign countries. Also, the tenure heterogeneity and functional experience heterogeneity of the top management team are inversely related to firm performance. This paper analyzes and discusses the findings in detail and points out areas for future research.

References

  • Allison P (1978). Measures of inequality. American Sociological Review, (43): 865–880

  • Amason A C, Sapienza H J (1997). The effects of top management team size and interaction norms on cognitive and affective conflict. Journal of Management, 23(4): 495–516

    Article  Google Scholar 

  • Blau P M (1977). Inequality and Heterogeneity: A Primitive Theory of Social Structure. New York: Free Press.

    Google Scholar 

  • Carpenter M A (2002). The implications of strategy and social context for the relationship between top management team heterogeneity and firm performance. Strategic Management Journal, 23(3): 275–284

    Article  Google Scholar 

  • Finkelstein S, Hambrick D C (1996). Strategic Leadership: Top Executives and Their Effect on Organizations. St. Paul: West.

    Google Scholar 

  • Hambrick, D. C. and Cho, T. S. and Chen, Ming-Jer. The influence of top management team heterogeneity on firm’s competitive moves. Administrative Science Quarterly, 1996, 41(4): 659–684

    Article  Google Scholar 

  • Hambrick D C, Mason P A (1984). Upper Echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2): 193–206

    Article  Google Scholar 

  • Glunk U, Heijltjes M G, Olie R (2001). Design characteristics and functioning of top management teams in Europe. European Management Journal, 19(3): 291–300

    Article  Google Scholar 

  • Knight D, Pearce C L, Smith K G, Olian J D, Sims H P, Smith K A, Flood P (1999). Top management team diversity, group process, and strategic consensus. Strategic Management Journal, 20(3): 445–465

    Article  Google Scholar 

  • Lan Hailin (2004). Research on the behavior of China’s state-owned business groups in the transition economy Beijing: Economic Science Press (in Chinese)

    Google Scholar 

  • Pfeffer J (1983). Organizational demography. In: Cummings L L, Staw B M, eds. Research in Organization Behavior. Greenwich: JAI Press, 299–357

    Google Scholar 

  • Richard H L, Maier N R (1961). Quality and acceptance of problem solutions by members of homogeneous and heterogeneous groups. Journal of Abnormal and Social Psychology, (62): 401–407

  • Richard O C, Shelor R M (2002). Linking top management team age heterogeneity to firm performance: Juxtaposing two mid-range theories. The International Journal of Human Resource Management, 13(6): 958–974

    Article  Google Scholar 

  • Ronen S, Shenkar Q (1985). Clustering countries on attitudinal dimensions: A review and synthesis. Academy of Management Review, (10): 435–454

  • Simons T L (1995). Top management team consensus, heterogeneity and debate as contingent predictors of company performance: The complimentarity of group structure and process. Academy of Management Proceedings. 62–66

  • Tihanyi L, Ellstrand A E, Daily C M, Dalton D R (2001). Composition of the top management team and firm international diversification. Journal of Management, 26(6): 1157–1177

    Article  Google Scholar 

  • Wang Xigang, Cong Haitao, Ouyang Linnan (2003). What can explain corporate value: EVA or accountant index. Economy Science, (2): 98–106 (in Chinese)

  • Wei Liqun, Wang Zhihui (2002). Empirical study on the relationship between characteristics of TMTs and firm performance of Chinese Businesses. Nakai Business Review, (4): 16–22 (in Chinese)

  • West C T, Schwenk C R (1996). Top management team strategic consensus, demographic homogeneity and firm performance: a report of resounding nonfindings. Strategic Management Journal, 17(7): 571–576

    Article  Google Scholar 

  • Whitely R (1992). Societies, firms and markets: the social structuring of business systems, In: Whitey R, ed. European Business Systems: Firms and Markets in their National Context. London: Sage

    Google Scholar 

  • Yu Dongzhi, Chi Guohua (2004). Number of directors, board stability and performance: theory and experience. Economy Research, (4): 70–79 (in Chinese)

  • Zenger T, Lawrence B (1989). Organizational demography: The differential effects of age and tenure on communication. Academy of Management Journal, (32): 353–376

Download references

Author information

Authors and Affiliations

  1. School of Business Administration, South China University of Technology, Guangzhou, 510640, China

    Zhang Ping

Authors
  1. Zhang Ping
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Zhang Ping.

Additional information

Translated from Guanli Pinglun 맜理评论 (Management Review), 2006, 18 (5): 54–60

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Zhang, P. Top management team heterogeneity and firm performance: An empirical research on Chinese listed companies. Front. Bus. Res. China 1, 123–134 (2007). https://doi.org/10.1007/s11782-007-0008-x

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11782-007-0008-x

Keywords

  • top management team
  • heterogeneity
  • social context