What Is a TMT?

Many people still credit organizational performance to the decisions of a heroic, single CEO. CEOs, so it is assumed, steer organizations according to a “one-captain-on-a-ship” approach. They are the ones to be credited for successes or blamed for losses. Yet organizational reality is that many organizations nowadays have a TMT instead of a single decision maker at the top.2 That is, the CEO creates a team of executives around him or her, and strategic decisions are made within the team.

The concept of TMT was introduced in the organizational literature more than 20 years ago by Hambrick and Mason.3 These authors simply referred to a TMT as “the firm’s officers.” More recently, researchers have specified a TMT to be “the aggregate ...

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