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An empirical study on the relation between characteristics of enterprise Top Management Team and strategic decision in industry cluster of China

Jiajun Gu

International Journal of Human Resources Development and Management, 2008, vol. 8, issue 1/2, 96-110

Abstract: A hypothesis model about how the characters of Top Management Team (TMT) influence strategic decision making has been put forward, based on the theory of TMT character. We investigated the corporations in China industry cluster and utilised correlation analysis and Structure Equation Modelling, before examining dependent variable to result variable direct influence. The study found that the average tenure and the average level of education of TMT have significant influence on the quality, cost and speed of strategic decision-making. The average age of the TMT members does not have significant influence on the speed of strategic decision-making, and the heterogeneity of tenure about the TMT members has no prominent influence on the quality of the strategic decision making either.

Keywords: top management team; TMT; strategic decision making; industry clusters; China; correlation analysis; structure equation modelling; education levels. (search for similar items in EconPapers)
Date: 2008
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Handle: RePEc:ids:ijhrdm:v:8:y:2008:i:1/2:p:96-110