Key Processes Between the TMT and Middle Managers

Information Exchange

TMT researchers have often built on information-processing theory—introduced in chapter 2—to suggest that strategic decision quality is influenced by the amount and type of information that the TMT gathers, interprets, and synthesizes during decision making.26 Because strategic decisions are complex and of major significance to an organization, achieving high-quality decisions requires the incorporation of as much relevant information as possible, as well as appropriate and creative ways of combining this information.27

Most prominently in this research stream, Hambrick and Mason argued in their upper-echelons theory that important sources of differences come from TMT members’ ...

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