The Interaction Effects of Top Management Team Attributes and Environment on Organizational Growth

D. Agus Harjito () and Zunaidah Sulong ()

Jurnal Siasat Bisnis, 2005, vol. 1, issue 10

Abstract: This paper attempts to explore how TMT (Top Management Team) attributes interact with environment dimensions to influence organizational growth. Specifically, this study will examine environmental dimensions as a potentially important moderator of the association between TMT attributes and organizational growth. However, the overall findings provide mixed results for the hypotheses tested. The results of direct effect show that: (1) organizational growth exhibits a significant positive relationship with TMT tenure; (2) TMT functional heterogeneity is insignificant with no change in the variance of organizational growth; and (3) positive but insignificant relationship between industrial heterogeneity and organizational growth. Furthermore, the interaction effect results indicate that: (1) as munificence increases, the relationship between TMT tenure and organizational growth shows increasingly positive; (2) concentration, dynamism and munificence moderate the relationship between TMT functional heterogeneity and organizational growth; (3) finally, the interaction effect also provide mixed results, such: as environment concentration increases, the relationship between TMT industrial heterogeneity and organizational growth increases positively; by contrast, as environment dynamism increases, the relationship between TMT industrial heterogeneity and organizational growth increases negatively; while the interaction between TMT industrial heterogeneity and environment munificence is not significant to explain the organizational growth.Key words: Organization growth, environment, management team.

Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:uii:jsbuii:v:1:y:2005:i:10:id:990

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