TMT Impact on the Organization

How can a TMT reap the benefits and avoid the traps of working in a team? Assuming that “good” performance of a TMT translates into an organization performing well, researchers have investigated which characteristics of the TMT matter the most for organizational performance. Two streams of research provide primary insight into these questions: research from the upper-echelons perspective in the strategy discipline and team research from the social and organizational psychology fields.

Composition of the Team

Scholars of strategy have studied TMTs from the perspective of the upper-echelons theory.25 This theory emphasizes the role of TMT composition in terms of TMT members’ demographic characteristics, such as age ...

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