IDEAS home Printed from https://ideas.repec.org/a/bla/jomstd/v60y2023i3p722-751.html
   My bibliography  Save this article

CEO–TMT Congruence in Growth‐Need Strength and Firm Growth

Author

Listed:
  • Xue Wan
  • Stephen X. Zhang
  • Feng Wei

Abstract

The literature on the CEO–TMT interface has called for research on the implications of CEO–TMT congruence or fit. We examine the effect of CEO–TMT degree of congruence, forms of congruence, and forms of incongruence in growth‐need strength on firm growth based on decades of research on leader–team congruence. Using five‐wave survey data from the CEOs and other TMT members of 128 new firms, we find CEO–TMT incongruence in growth‐need strength is negatively related to firm growth by reducing CEO openness to the TMT. Our study charts a new avenue for upper echelons research, particularly on the CEO–TMT interface, by providing a nuanced theoretical framework and evidence on CEO–TMT congruence.

Suggested Citation

  • Xue Wan & Stephen X. Zhang & Feng Wei, 2023. "CEO–TMT Congruence in Growth‐Need Strength and Firm Growth," Journal of Management Studies, Wiley Blackwell, vol. 60(3), pages 722-751, May.
    • Handle: RePEc:bla:jomstd:v:60:y:2023:i:3:p:722-751
    DOI: 10.1111/joms.12806
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/joms.12806
    Download Restriction: no
    File URL: https://libkey.io/10.1111/joms.12806?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ciaran Heavey & Zeki Simsek, 2015. "Transactive Memory Systems and Firm Performance: An Upper Echelons Perspective," Organization Science, INFORMS, vol. 26(4), pages 941-959, August.
    2. Frances J. Milliken & Elizabeth W. Morrison & Patricia F. Hewlin, 2003. "An Exploratory Study of Employee Silence: Issues that Employees Don’t Communicate Upward and Why," Journal of Management Studies, Wiley Blackwell, vol. 40(6), pages 1453-1476, September.
    3. Nuscheler, Daniela & Engelen, Andreas & Zahra, Shaker A., 2019. "The role of top management teams in transforming technology-based new ventures' product introductions into growth," Journal of Business Venturing, Elsevier, vol. 34(1), pages 122-140.
    4. Cassar, Gavin, 2006. "Entrepreneur opportunity costs and intended venture growth," Journal of Business Venturing, Elsevier, vol. 21(5), pages 610-632, September.
    5. Son K. Lam & Thomas E. DeCarlo & Ashish Sharma, 2019. "Salesperson ambidexterity in customer engagement: do customer base characteristics matter?," Journal of the Academy of Marketing Science, Springer, vol. 47(4), pages 659-680, July.
    6. Murphy, Gregory B. & Trailer, Jeff W. & Hill, Robert C., 1996. "Measuring performance in entrepreneurship research," Journal of Business Research, Elsevier, vol. 36(1), pages 15-23, May.
    7. Yan Ling & Zeki Simsek & Michael Lubatkin & John F. Velga, 2008. "Transformational Leadership's Role in Promoting Corporate Entrepreneurship : Examining the CEO - TMT Interface," Post-Print hal-02276697, HAL.
    8. Steve Sauerwald & Zhiang (John) Lin & Mike W. Peng, 2016. "Board social capital and excess CEO returns," Strategic Management Journal, Wiley Blackwell, vol. 37(3), pages 498-520, March.
    9. Gregory G. Dess, 1987. "Consensus on strategy formulation and organizational performance: Competitors in a fragmented industry," Strategic Management Journal, Wiley Blackwell, vol. 8(3), pages 259-277, May.
    10. Amy C. Edmondson, 2003. "Speaking Up in the Operating Room: How Team Leaders Promote Learning in Interdisciplinary Action Teams," Journal of Management Studies, Wiley Blackwell, vol. 40(6), pages 1419-1452, September.
    11. Preller, Rebecca & Patzelt, Holger & Breugst, Nicola, 2020. "Entrepreneurial visions in founding teams: Conceptualization, emergence, and effects on opportunity development," Journal of Business Venturing, Elsevier, vol. 35(2).
    12. Shenghui Ma & David Seidl, 2018. "New CEOs and their collaborators: Divergence and convergence between the strategic leadership constellation and the top management team," Strategic Management Journal, Wiley Blackwell, vol. 39(3), pages 606-638, March.
    13. Nunes, Paulo Maçãs & Serrasqueiro, Zélia & Leitão, João, 2012. "Is there a linear relationship between R&D intensity and growth? Empirical evidence of non-high-tech vs. high-tech SMEs," Research Policy, Elsevier, vol. 41(1), pages 36-53.
    14. Sefa Hayibor & Bradley Agle & Greg Sears & Jeffrey Sonnenfeld & Andrew Ward, 2011. "Value Congruence and Charismatic Leadership in CEO–Top Manager Relationships: An Empirical Investigation," Journal of Business Ethics, Springer, vol. 102(2), pages 237-254, August.
    15. Barbara S. Lawrence, 1997. "Perspective---The Black Box of Organizational Demography," Organization Science, INFORMS, vol. 8(1), pages 1-22, February.
    16. Tine Buyl & Christophe Boone & Walter Hendriks & Paul Matthyssens, 2011. "Top Management Team Functional Diversity and Firm Performance: The Moderating Role of CEO Characteristics," Journal of Management Studies, Wiley Blackwell, vol. 48(1), pages 151-177, January.
    17. Ciaran Heavey & Zeki Simsek & Frank Roche & Aidan Kelly, 2009. "Decision Comprehensiveness and Corporate Entrepreneurship: The Moderating Role of Managerial Uncertainty Preferences and Environmental Dynamism," Journal of Management Studies, Wiley Blackwell, vol. 46(8), pages 1289-1314, December.
    18. Qing Cao & Zeki Simsek & Hongping Zhang, 2010. "Modelling the Joint Impact of the CEO and the TMT on Organizational Ambidexterity," Journal of Management Studies, Wiley Blackwell, vol. 47(7), pages 1272-1296, November.
    19. Christian Tröster & Daan van Knippenberg, 2012. "Leader openness, nationality dissimilarity, and voice in multinational management teams," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(6), pages 591-613, August.
    20. Zeki Simsek, 2007. "CEO tenure and organizational performance: an intervening model," Strategic Management Journal, Wiley Blackwell, vol. 28(6), pages 653-662, June.
    21. Amason, Allen C. & Shrader, Rodney C. & Tompson, George H., 2006. "Newness and novelty: Relating top management team composition to new venture performance," Journal of Business Venturing, Elsevier, vol. 21(1), pages 125-148, January.
    22. Zeki Simsek & John F. Veiga & Michael Lubatkin & Richard N. Dino, 2005. "Modeling the Multilevel Determinants of Top management Team Behavorial Integration," Post-Print hal-02311805, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alfredo De Massis & Kimberly A. Eddleston & Paola Rovelli, 2021. "Entrepreneurial by Design: How Organizational Design Affects Family and Non‐family Firms’ Opportunity Exploitation," Journal of Management Studies, Wiley Blackwell, vol. 58(1), pages 27-62, January.
    2. Andreea N. Kiss & Dirk Libaers & Pamela S. Barr & Tang Wang & Miles A. Zachary, 2020. "CEO cognitive flexibility, information search, and organizational ambidexterity," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2200-2233, December.
    3. Daniel Leunbach & Truls Erikson & Max Rapp-Ricciardi, 2020. "Muddling through Akerlofian and Knightian uncertainty: The role of sociobehavioral integration, positive affective tone, and polychronicity," Journal of International Entrepreneurship, Springer, vol. 18(2), pages 145-164, June.
    4. Achbah, Rachid & Vitanova, Ivana & Fréchet, Marc, 2024. "Failure Escape: The role of advice seeking in CEOs’ awareness of financial difficulties and corporate restructuring," Journal of Business Research, Elsevier, vol. 175(C).
    5. Yuan, Wenlong & Bao, Yongjian & Olson, Bradley J., 2017. "CEOs’ ambivalent interpretations, organizational market capabilities, and corporate entrepreneurship as responses to strategic issues," Journal of World Business, Elsevier, vol. 52(2), pages 312-326.
    6. Mammassis, Constantinos S. & Kostopoulos, Konstantinos C., 2019. "CEO goal orientations, environmental dynamism and organizational ambidexterity: An investigation in SMEs," European Management Journal, Elsevier, vol. 37(5), pages 577-588.
    7. Yan Ling & Michelle Hammond & Li-Qun Wei, 2022. "Ethical leadership and ambidexterity in young firms: examining the CEO-TMT Interface," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 25-48, March.
    8. Xiaoming He & Yaqun Yi & Zelong Wei, 2019. "New product development capabilities in China: the moderating role of TMT cooperative behavior," Asian Business & Management, Palgrave Macmillan, vol. 18(2), pages 73-97, April.
    9. Emil Viduranga Mogård & Ole Bendik Rørstad & Henning Bang, 2022. "The Relationship between Psychological Safety and Management Team Effectiveness: The Mediating Role of Behavioral Integration," IJERPH, MDPI, vol. 20(1), pages 1-24, December.
    10. Michaela Wrede & Tobias Dauth, 2020. "A temporal perspective on the relationship between top management team internationalization and firms' innovativeness," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(4), pages 542-561, June.
    11. Rovelli, Paola, 2020. ""I am stuck in meetings": Understanding the relation of CEO time management with TMT size and gender diversity," European Management Journal, Elsevier, vol. 38(5), pages 777-790.
    12. Pascal Back & Andreas Bausch, 2019. "Not If, But How CEOs Affect Product Innovation: A Systematic Review and Research Agenda," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 1-52, May.
    13. Lu, Li & Norder, Kurt A. & Sawhney, Aman & Emich, Kyle J., 2023. "Setting the programmatic agenda: A comprehensive bibliometric overview of team mechanism research," Journal of Business Research, Elsevier, vol. 154(C).
    14. O'Shannassy, Timothy & Leenders, Mark A.A.M., 2016. "Avoiding the “too comfortable in the saddle” syndrome: Obtaining high performance from the chairperson, CEO and inside directors," Journal of Business Research, Elsevier, vol. 69(12), pages 5972-5982.
    15. Asghar Afshar Jahanshahi & Alexander Brem, 2017. "Sustainability in SMEs: Top Management Teams Behavioral Integration as Source of Innovativeness," Sustainability, MDPI, vol. 9(10), pages 1-16, October.
    16. Stefan Schmid & Simon Mitterreiter, 2020. "International Top Managers on Corporate Boards: Dissimilarity and Tenure," Management International Review, Springer, vol. 60(5), pages 787-825, October.
    17. Yildiz, H. Emre & Murtic, Adis & Zander, Udo, 2024. "Re-conceptualizing absorptive capacity: The importance of teams as a meso-level context," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    18. Christopher S. Tuggle & David G. Sirmon & Cameron J. Borgholthaus & Leonard Bierman & A. Erin Bass, 2022. "From Seats at the Table to Voices in the Discussion: Antecedents of Underrepresented Director Participation in Board Meetings," Journal of Management Studies, Wiley Blackwell, vol. 59(5), pages 1253-1283, July.
    19. Xue Tong Dong & Yang Woon Chung & Jeong Kwon Yun, 2023. "The Mediating Effects of Anxiety and Happiness and the Moderating Effect of Social Network Services for Employee Silence and Psychological Withdrawal Behavior," SAGE Open, , vol. 13(4), pages 21582440231, November.
    20. Valentina Marano & Steve Sauerwald & Marc Essen, 2022. "The influence of culture on the relationship between women directors and corporate social performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(7), pages 1315-1342, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jomstd:v:60:y:2023:i:3:p:722-751. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.