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Competitive repertoire simplicity and firm performance: The moderating role of top management team heterogeneity

Author

Listed:
  • Walter J. Ferrier

    (Gatton College of Business and Economics, University of Kentucky, Lexington, KY, USA)

  • Douglas W. Lyon

    (College of Business, Utah State University, Logan, UT, USA)

Abstract

We extend Miller and Chen's (Strategic Manage J 1996; 17 : 419-439) recent research on the impact of competitive repertoire simplicity on firm performance by exploring the extent to which top management team (TMT) demographic heterogeneity moderates this relationship. These authors found that competitive repertoire simplicity among firms in the airline industry was negatively related to firm performance. By contrast, our findings from a multi-industry study suggest that strategic repertoire simplicity is positively related to performance for firms led by heterogeneous TMTs, and negatively related for less heterogeneous TMTs. Accordingly, this finding advances theory within competitive dynamics and strategic leadership. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • Walter J. Ferrier & Douglas W. Lyon, 2004. "Competitive repertoire simplicity and firm performance: The moderating role of top management team heterogeneity," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(6-7), pages 317-327.
    • Handle: RePEc:wly:mgtdec:v:25:y:2004:i:6-7:p:317-327
    DOI: 10.1002/mde.1193
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    References listed on IDEAS

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    1. Karen A. Bantel & Susan E. Jackson, 1989. "Top management and innovations in banking: Does the composition of the top team make a difference?," Strategic Management Journal, Wiley Blackwell, vol. 10(S1), pages 107-124, June.
    2. Ming-Jer Chen & Ken G. Smith & Curtis M. Grimm, 1992. "Action Characteristics as Predictors of Competitive Responses," Management Science, INFORMS, vol. 38(3), pages 439-455, March.
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    Cited by:

    1. Syed Zulfiqar Ali Shah & Muhammad Anwar & Ch. Mazhar Hussain, 2021. "Top managers' attributes, innovation, and the participation in China–Pakistan Economic Corridor: A study of energy sector small and medium‐sized enterprises," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 385-406, March.
    2. Anna Nadolska & Harry G. Barkema, 2014. "Good learners: How top management teams affect the success and frequency of acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 35(10), pages 1483-1507, October.
    3. Tung-Shan Liao, 2017. "Interaction Model of Superior Performance Based on Technological Resources and Competitive Actions in the Nascent Cycle of the Tablet Industry," Business, Management and Economics Research, Academic Research Publishing Group, vol. 3(11), pages 218-231, 11-2017.
    4. Nianxin Wang & Yuxue Yang & Yulin Fang & Huifang Li & Angela Lu, 2023. "Growing user base in the early stage of sharing economy platforms: An integration of competitive repertoire and institutional legitimacy theories," Production and Operations Management, Production and Operations Management Society, vol. 32(11), pages 3484-3503, November.
    5. Miller, Danny & Le Breton-Miller, Isabelle, 2025. "Competitive dynamics in family firms: Transactional versus communal approaches," Journal of Family Business Strategy, Elsevier, vol. 16(2).
    6. T V Arun Kumar & K S Manikandan, 2024. "Business group affiliation and competitive repertoire," Asia Pacific Journal of Management, Springer, vol. 41(2), pages 477-505, June.
    7. Kristina Reineke & Holger Steinmetz & Rodrigo Isidor, 2020. "Diversity, Team Mechanisms, and Performance: A Meta-Analytical Test of an Opposing Path Model," Working Papers Dissertations 61, Paderborn University, Faculty of Business Administration and Economics.
    8. Christoph Feichter & Frank Moers & Oscar Timmermans, 2022. "Relative Performance Evaluation and Competitive Aggressiveness," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 60(5), pages 1859-1913, December.
    9. 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.
    10. Houghton, Susan M. & Smith, Anne D. & Hood, Jacqueline N., 2009. "The influence of social capital on strategic choice: An examination of the effects of external and internal network relationships on strategic complexity," Journal of Business Research, Elsevier, vol. 62(12), pages 1255-1261, December.
    11. Hermann Achidi Ndofor & David G. Sirmon & Xiaoming He, 2015. "Utilizing the firm's resources: How TMT heterogeneity and resulting faultlines affect TMT tasks," Strategic Management Journal, Wiley Blackwell, vol. 36(11), pages 1656-1674, November.
    12. 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.
    13. Yasar Mehmet & Gerede Ender, 2020. "Identification of factors affecting competitive tension in the domestic air transport market in Turkey," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(2), pages 118-139, June.
    14. Yasar Mehmet & Gerede Ender, 2020. "Identification of factors affecting competitive tension in the domestic air transport market in Turkey," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(2), pages 118-139, June.
    15. Cord H. Burchard & Juliane Proelss & Utz Schäffer & Denis Schweizer, 2021. "Bad news for announcers, good news for rivals: Are rivals fully seizing transition‐period opportunities following announcers' top management turnovers?," Strategic Management Journal, Wiley Blackwell, vol. 42(3), pages 579-607, March.
    16. Ana Câmara & Federico Aime & Oleg Petrenko, 2023. "We act therefore we are: A theory of action‐driven strategy," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(8), pages 4722-4738, December.

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