IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v95y2019icp171-181.html
   My bibliography  Save this article

The interplay between CEO-TMT exchange level and differentiation: Implications for firm competitive behaviors and performance

Author

Listed:
  • Lin, Hao-Chieh
  • Lin, Pei-Chun

Abstract

The study examines the interplay between CEO-TMT exchange level and differentiation as well as its implications for firm competitive behaviors and performance. The results based on a set of primary and secondary data collected from Taiwan indicate that CEO-TMT exchange level exerts a positive effect on competitive propensity, which in turn advances firm performance. Nonetheless, the direct effect of CEO-TMT exchange level and the mediating effect of competitive propensity are diminished under a high-level CEO-TMT exchange differentiation, as revealed in the moderated-mediation analyses. Our study contributes to the upper-echelons and competitive dynamics theories by identifying the paradoxical dynamics between the emergence and divergence of CEO-TMT exchange, and its contrasting effects on firm competitive initiatives and differential advantage. We also add value to the leader-member exchange (LMX) theory by extending its implications from prior attitudinal or behavioral concerns in workplace team contexts to a firm's strategic decisions in top decision-making body.

Suggested Citation

  • Lin, Hao-Chieh & Lin, Pei-Chun, 2019. "The interplay between CEO-TMT exchange level and differentiation: Implications for firm competitive behaviors and performance," Journal of Business Research, Elsevier, vol. 95(C), pages 171-181.
    • Handle: RePEc:eee:jbrese:v:95:y:2019:i:c:p:171-181
    DOI: 10.1016/j.jbusres.2018.10.034
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296318305150
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2018.10.034?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lo, Fang-Yi & Fu, Pao-Hung, 2016. "The interaction of chief executive officer and top management team on organization performance," Journal of Business Research, Elsevier, vol. 69(6), pages 2182-2186.
    2. Montani, Francesco & Courcy, François & Vandenberghe, Christian, 2017. "Innovating under stress: The role of commitment and leader-member exchange," Journal of Business Research, Elsevier, vol. 77(C), pages 1-13.
    3. Sahaym, Arvin & Cho, Sam Yul & Kim, Sang Kyun & Mousa, Fariss-Terry, 2016. "Mixed blessings: How top management team heterogeneity and governance structure influence the use of corporate venture capital by post-IPO firms," Journal of Business Research, Elsevier, vol. 69(3), pages 1208-1218.
    4. White, Michael C. & Smith, Mark & Barnett, Tim, 1994. "Strategic inertia: The enduring impact of CEO specialization and strategy on following strategies," Journal of Business Research, Elsevier, vol. 31(1), pages 11-22, September.
    5. Brian L. Connelly & Laszlo Tihanyi & David J. Ketchen Jr & Christina Matz Carnes & Walter J. Ferrier, 2017. "Competitive repertoire complexity: Governance antecedents and performance outcomes," Strategic Management Journal, Wiley Blackwell, vol. 38(5), pages 1151-1173, May.
    6. Baixauli-Soler, J. Samuel & Belda-Ruiz, Maria & Sanchez-Marin, Gregorio, 2015. "Executive stock options, gender diversity in the top management team, and firm risk taking," Journal of Business Research, Elsevier, vol. 68(2), pages 451-463.
    7. Francesco Montani & François Courcy & Christian Vandenberghe, 2017. "Innovating under stress: The role of commitment and leader-member exchange," Post-Print hal-02078956, HAL.
    8. Timothy J. Quigley & Donald C. Hambrick, 2015. "Has the “CEO effect” increased in recent decades? A new explanation for the great rise in America's attention to corporate leaders," Strategic Management Journal, Wiley Blackwell, vol. 36(6), pages 821-830, June.
    9. Aryee, Samuel & Zhen Xiong Chen, 2006. "Leader-member exchange in a Chinese context: Antecedents, the mediating role of psychological empowerment and outcomes," Journal of Business Research, Elsevier, vol. 59(7), pages 793-801, July.
    10. Chen, Tianxu & Tribbitt, Mark A. & Yang, Yi & Li, Xiaomei, 2017. "Does rivals' innovation matter? A competitive dynamics perspective on firms' product strategy," Journal of Business Research, Elsevier, vol. 76(C), pages 1-7.
    11. Ming-Jer Chen & Danny Miller, 2015. "Reconceptualizing competitive dynamics: A multidimensional framework," Strategic Management Journal, Wiley Blackwell, vol. 36(5), pages 758-775, May.
    12. Auh, Seigyoung & Menguc, Bulent, 2005. "Balancing exploration and exploitation: The moderating role of competitive intensity," Journal of Business Research, Elsevier, vol. 58(12), pages 1652-1661, December.
    13. 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.
    14. Xu, Jun & Liu, Yongmei & Guo, Yi, 2014. "The role of subordinate emotional masking in leader–member exchange and outcomes: A two-sample investigation," Journal of Business Research, Elsevier, vol. 67(2), pages 100-107.
    15. Sucheta Nadkarni & Tianxu Chen & Jianhong Chen, 2016. "The clock is ticking! Executive temporal depth, industry velocity, and competitive aggressiveness," Strategic Management Journal, Wiley Blackwell, vol. 37(6), pages 1132-1153, June.
    16. Vinay K. Garg & Bruce A. Walters & Richard L. Priem, 2003. "Chief executive scanning emphases, environmental dynamism, and manufacturing firm performance," Strategic Management Journal, Wiley Blackwell, vol. 24(8), pages 725-744, August.
    17. Ridge, Jason W. & Johnson, Scott & Hill, Aaron D. & Bolton, Joel, 2017. "The role of top management team attention in new product introductions," Journal of Business Research, Elsevier, vol. 70(C), pages 17-24.
    18. Ming‐Jer Chen & Hao‐Chieh Lin & John G. Michel, 2010. "Navigating in a hypercompetitive environment: the roles of action aggressiveness and TMT integration," Strategic Management Journal, Wiley Blackwell, vol. 31(13), pages 1410-1430, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fernando Alexandre & Sara Cruz & Miguel Portela, 2020. "Financial distress and the role of management in micro and small-sized firms," NIPE Working Papers 06/2020, NIPE - Universidade do Minho.
    2. Sicheng Luo & Hao-Chieh Lin, 2022. "How do TMT shared cognitions shape firm performance? The roles of collective efficacy, trust, and competitive aggressiveness," Asia Pacific Journal of Management, Springer, vol. 39(1), pages 295-318, March.
    3. Li, Yang & Chen, Meng & Cai, Zhao & Liu, Hefu, 2023. "Online-offline channel integration and innovation ambidexterity: Roles of top management team and environmental dynamism," Journal of Business Research, Elsevier, vol. 160(C).

    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. Jaeyoung Cho, 2024. "Thriving in the global competitive landscape: competitive dynamics and longevity of emerging market firms," Asian Business & Management, Palgrave Macmillan, vol. 23(1), pages 82-109, February.
    2. Yang, Wei & Meyer, Klaus E., 2020. "How do local and foreign firms compete? Competitive actions in an emerging economy," International Business Review, Elsevier, vol. 29(3).
    3. Sicheng Luo & Hao-Chieh Lin, 2022. "How do TMT shared cognitions shape firm performance? The roles of collective efficacy, trust, and competitive aggressiveness," Asia Pacific Journal of Management, Springer, vol. 39(1), pages 295-318, March.
    4. Wu, Liang & Liu, Heng & Su, Kun, 2020. "Exploring the dual effect of effectuation on new product development speed and quality," Journal of Business Research, Elsevier, vol. 106(C), pages 82-93.
    5. Yang, Wei & Meyer, Klaus E., 2019. "How does ownership influence business growth? A competitive dynamics perspective," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    6. Hughes-Morgan, Margaret & Kolev, Kalin & Mcnamara, Gerry, 2018. "A meta-analytic review of competitive aggressiveness research," Journal of Business Research, Elsevier, vol. 85(C), pages 73-82.
    7. Ralf Meinhardt & Sebastian Junge & Martin Weiss, 2018. "The organizational environment with its measures, antecedents, and consequences: a review and research agenda," Management Review Quarterly, Springer, vol. 68(2), pages 195-235, April.
    8. Mai Chi Vu & Roger Gill, 2023. "Are Leaders Responsible for Meaningful Work? Perspectives from Buddhist-Enacted Leaders and Buddhist Ethics," Journal of Business Ethics, Springer, vol. 187(2), pages 347-370, October.
    9. Barker, Jordan M. & Gibson, Andrew R. & Hofer, Adriana R. & Hofer, Christian & Moussaoui, Issam & Scott, Marc A., 2021. "A competitive dynamics perspective on the diversification of third-party logistics providers’ service portfolios," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 146(C).
    10. 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.
    11. Hao-Chieh Lin & Trang Thi Ha Dang & Yu-Sheng Liu, 2016. "CEO transformational leadership and firm performance: A moderated mediation model of TMT trust climate and environmental dynamism," Asia Pacific Journal of Management, Springer, vol. 33(4), pages 981-1008, December.
    12. Christian Hofer & Jordan M. Barker & Laura D'Oria & Jonathan L. Johnson, 2022. "Broadening our understanding of interfirm rivalry: A call for research on how supply networks shape competitive behavior and performance," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(2), pages 8-25, April.
    13. 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.
    14. Ilya R. P. Cuypers & Charmi Patel & Gokhan Ertug & Jiatao Li & Youtha Cuypers, 2022. "Top management teams in international business research: A review and suggestions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 481-515, April.
    15. Hsu, Chia-Wen & Lien, Yung-Chih & Chen, Homin, 2013. "International ambidexterity and firm performance in small emerging economies," Journal of World Business, Elsevier, vol. 48(1), pages 58-67.
    16. 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.
    17. Abhay K. Grover & Martin Dresner, 2022. "A theoretical model on how firms can leverage political resources to align with supply chain strategy for competitive advantage," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(2), pages 48-65, April.
    18. Bichel Andreea Nicoleta & Șerban Corina Georgiana & Bujor Dragoș, 2023. "An Innovative Future through Robotic Process Automation, a Case Study," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 17(1), pages 1909-1918, July.
    19. Crick, James M. & Crick, Dave, 2021. "The dark-side of coopetition: Influences on the paradoxical forces of cooperativeness and competitiveness across product-market strategies," Journal of Business Research, Elsevier, vol. 122(C), pages 226-240.
    20. Qalati, Sikander Ali & Yuan, Li Wen & Khan, Muhammad Aamir Shafique & Anwar, Farooq, 2021. "A mediated model on the adoption of social media and SMEs’ performance in developing countries," Technology in Society, Elsevier, vol. 64(C).

    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:eee:jbrese:v:95:y:2019:i:c:p:171-181. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    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.