CHAPTER 2

Background—What theory reveals

Research involving Upper Echelons Theory (UET) in business has provided executives with a novel approach to improving corporate efficiency. Interestingly, unexpected patterns in data revealed valuable information for organizations regardless of the industry. However, researchers have had mixed and inconclusive results to support UET. Primarily, causal factors from mixed sample populations skewed the results. Furthermore, subtle changes to the original interpretation of the UET altered the fundamental scope of application. As an example, sampling multiple industries and hierarchies as singular entities led to results that assumed the need of other variables or theory for consideration.

Hambrick encouraged ...

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