TITLE:
Study on TMT Heterogeneity’s Effects on Corporate Performance from the Perspective of Leadership Structure
AUTHORS:
Jian He, Li Li, Weining Li
KEYWORDS:
CEO, TMT Heterogeneity, Leadership Structure, Corporate Performance
JOURNAL NAME:
Open Journal of Business and Management,
Vol.4 No.1,
January
26,
2016
ABSTRACT: Based on Upper Echelons theory, this article makes use of a sample of 130 companies that experienced
CEO succession due to performance decline to investigate whether the TMT heterogeneity
impact on corporate performance and how the leadership structure of corporation moderates the
relationship between them. It is shown that TMT age heterogeneity has a U-shaped relationship
with corporate performance; TMT tenure heterogeneity and TMT educational levels heterogeneity
have inverted U-shaped relationship with corporate performance; while the leadership structure
of corporation has a moderating effect on the relationship between TMT age heterogeneity, TMT
tenure heterogeneity and corporate performance. The findings of this study would be helpful to
cultivate and construct the entrepreneurial TMT, and to design corporate leadership structure.