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

Hao-Chieh Lin and Pei-Chun Lin

Journal of Business Research, 2019, vol. 95, issue C, 171-181

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.

Keywords: Upper-echelons; Competitive dynamics; Top management team (TMT); CEO-TMT interplay; Leader-member exchange (LMX) (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:95:y:2019:i:c:p:171-181

DOI: 10.1016/j.jbusres.2018.10.034

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