Changes In The Top Management Team: Performance Implications Of Altering Team Composition
AbstractThis study focuses on the performance implications of changes in the top management team using an eleven-year period longitudinal research design with a sample of 45 of the largest corporations in the Netherlands. The central argument of this paper builds on the idea that exits and entries of top management team members have a significant impact on subsequent firm performance due to the resulting changes in the composition of the team. Two aspects of team composition – organizational tenure and age - are examined in more detail. Specifically it is argued that changes in the top team which lead to higher degrees of dissimilarity between members of the team on the two aspects examined, will have a negative effect on performance. Results indicate that exits and entries indeed have performance implications in the years following the change. These performance effects can, however, not be attributed to increasing age or tenure dissimilarity.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 060.
Date of creation: 2003
Date of revision:
Contact details of provider:
Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm
management and organization theory ;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Denis, David J & Denis, Diane K, 1995. " Performance Changes Following Top Management Dismissals," Journal of Finance, American Finance Association, vol. 50(4), pages 1029-57, September.
- Murphy, Kevin J. & Zimmerman, Jerold L., 1993. "Financial performance surrounding CEO turnover," Journal of Accounting and Economics, Elsevier, vol. 16(1-3), pages 273-315, April.
- Glunk, Ursula & Heijltjes, Mariëlle G. & Olie, René, 2001. "Design characteristics and functioning of top management teams in Europe," European Management Journal, Elsevier, vol. 19(3), pages 291-300, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charles Bollen).
If references are entirely missing, you can add them using this form.