Changes In The Top Management Team: Performance Implications Of Altering Team Composition

This study focuses on the performance implications of changes in the top management team using an eleven-year period longitudinal research design with a sample of 45 of the largest corporations in the Netherlands. The central argument of this paper builds on the idea that exits and entries of top management team members have a significant impact on subsequent firm performance due to the resulting changes in the composition of the team. Two aspects of team composition – organizational tenure and age - are examined in more detail. Specifically it is argued that changes in the top team which lead to higher degrees of dissimilarity between members of the team on the two aspects examined, will have a negative effect on performance. Results indicate that exits and entries indeed have performance implications in the years following the change. These performance effects can, however, not be attributed to increasing age or tenure dissimilarity.management and organization theory ;

Continuity And Renewal At The Top: Performance Effects Of The Level, Extent, Type And Frequency Of Top Management Team Changes

This study examines performance effects of changes in the top management team using an eleven-year period longitudinal research design with a sample of 45 major Dutch multinationals. Since changes at the top are a multi-faceted phenomenon, we study the topic from four different angles. Results indicate that the level of change in terms of CEO versus non-CEO changes and the extent of change in terms of the proportion of managers entering or exiting the team do not influence subsequent firm performance. Type and frequency of change however do matter. Our results indicate that renewal of top management teams in terms of non-retirement exits and limited outside entries can be beneficial for firm performance in the following year, especially when exits and entries are well aligned. On the other hand, a certain degree of continuity is also warranted. Too many outside entries at the same time were found to be disadvantageous in the short-run, while many CEO successions in a row were found to be disadvantageous in the longer-run.management and organization theory ;

Conflict, Trust, and Effectiveness in Teams Performing Complex Tasks: A Study of Temporal Patterns

In this study we analyze the evolution of intra-team conflict and trust in teams that perform complex tasks. Using a longitudinal research design with six time intervals over a period of ten months, we collected data on 41 teams. Our findings suggest the existence of two distinct temporal patterns. One pattern develops in a stable manner and is characterized by high levels of trust and relatively low levels of task and relationship conflict. The other pattern is unstable with low, deteriorating levels of trust and high, amplifying levels of task and relationship conflict. These patterns are associated with significant differences in team effectiveness. On a self-perception as well as a stakeholder measure of team effectiveness, teams with stable patterns outperformed teams with unstable patterns.management and organization theory ;

Turnover at the Top:: Demographic Diversity as a Determinant of Executive Turnover in The Netherlands

The current study examines diversity-related causes of executive turnover. Based on an integration of Schneider's (1987) ASA model and Pfeffer's (1983) organizational demography theory, it is hypothesized that individual demographic dissimilarity and team-level demographic heterogeneity are positively related to individual executive turnover. Results indicate that individual dissimilarity in age and TMT tenure are solid predictors of individual executive turnover. Furthermore, our test of cross-level hypotheses shows that a high degree of heterogeneity within the team does not increase the likelihood of individual executive turnover if individual dissimilarities are taken into account. The study reinforces the importance of top team demographic composition in explaining executive turnover.Top management teams Executive turnover Diversity

Internationalization of Top Management Teams in Europe

One issue in the international business literature that has been virtually ignored is the internationalization of top management teams. This study examines the extent of national diversity in the composition of top management teams in two highly internationalized European countries, Sweden and The Netherlands. Results indicate that the national diversity of top management teams in these countries has not progressed to the same level as the internationalization of the companies at large.International management Top management teams National diversity