Abstract:

Rapid changes in the business environment can spur firms to initiate strategic changes. Studies have examined the influence of top management team (TMT) faultlines with regard to strategic change from the perspective of the horizontal interaction between TMTs. In this study, the effects of vertical interactions between chief executive officer (CEO) and TMTs were examined by considering the effects of two moderating variables, CEO-TMT similarity and CEO-TMT power disparity, on the relationship between TMT task-related faultlines and strategic change. We hypothesized a positive relationship between TMT task-related faultlines and strategic change. The moderating effects of CEO-TMT similarity and CEO-TMT power disparity were also investigated. A sample of 1548 Chinese companies publicly listed on the Shanghai and Shenzhen Stock Exchanges during 2015-2018 was examined in this study. The findings indicate that TMT task-related faultlines are positively related to strategic change but that CEO-TMT similarity weakens this relationship.

Please choose your submission type: Full Paper

Primary Track: Strategy

Keywords: strategy;strategic change;organizational strategy;Strategy

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Prof Peng-Yu Li