Top Management Team Configurations and Firm Strategy and Performance

Kevin D. Clark Ken G. Smith Henry Sims, Jr.

Six Dimensions of Top Management Teams: • LEADERSHIP – egalitarian vs. directive • SOCIAL INTEGRATION (TEAMNESS) – cohesion, consensus ability, conflict (-) • POWER – amount and level of dispersion • COMMUNICATION – frequency X amplitude • EXPERIENCE – age, industry, and job • HETEROGENEITY – age, functional background, tenure in job

Hierarchy n=20 Blue Chip n=6 Federation n=5 Autocracy n=7

High and Low Performing TMTs: Variable Leadership Teamness Power Commun.

Experience Heterogen.

Firm size Innovation ROI Autocracy Low Low Med High Med Med 135 54/12 -126% Blue Chip Med Med High Med High Low 550 55/3 300% Federation High High High Med Low High 490 20/34 208%

Conclusions: • Equifinality (more than one way to skin a cat) • Gestalt approaches can lend insight (method matters) • Substitutes for traditional leadership structures may exist • Diversity ……..