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

✍ Scribed by Walter J. Ferrier; Douglas W. Lyon


Publisher
John Wiley and Sons
Year
2004
Tongue
English
Weight
144 KB
Volume
25
Category
Article
ISSN
0143-6570

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✦ Synopsis


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.