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Interrelationships between TMT management style, operation mode and management performance

Author

Listed:
  • Wann-Yih Wu
  • Chwan-Yi Chiang
  • Li-Chen Wu
  • Ming-Shiu Kuo

Abstract

This study investigates and compares the interrelationships among top management team (TMT) management style, business operation mode, competitive advantages and management performance for firms operating in both traditional and high-tech industries. The study proposes that TMTs in different industries tend to exercise different management styles and operation modes, implement different competitive strategies, acquire specific competitive advantages and consequently achieve different management performances. Based on a large-scale mailed survey in Taiwan, it is concluded that TMTs in the high-tech industries are comparatively younger in age and are more aggressive to take risks. They tend to adopt proactive management styles with decentralised business operation modes and marketing-oriented strategies. On the other hand, TMTs in the traditional industries are relatively more conservative that emphasise professional expertise and cost efficiency. They tend to adopted integrative-oriented management styles with highly centralised business operation modes and cost-oriented strategies. The results of this study could serve as an important reference for academicians and practitioners to create a firm's competitive advantages through the integration of TMT management style and operation mode, especially for the entrepreneurs of small and medium enterprises (SMEs).

Suggested Citation

  • Wann-Yih Wu & Chwan-Yi Chiang & Li-Chen Wu & Ming-Shiu Kuo, 2005. "Interrelationships between TMT management style, operation mode and management performance," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 2(2), pages 159-182.
    • Handle: RePEc:ids:ijmede:v:2:y:2005:i:2:p:159-182
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