dc.contributor.author | Mwangi, Patriciah G. | |
dc.contributor.author | Ogollah, Kennedy O | |
dc.contributor.author | Awino, Zachary B. | |
dc.contributor.author | Ogutu, Martin | |
dc.date.accessioned | 2016-05-09T09:50:46Z | |
dc.date.available | 2016-05-09T09:50:46Z | |
dc.date.issued | 2016-01 | |
dc.identifier.citation | Mwangi, Patriciah G, Awino, Zachary B, Ogollah, Kennedy O, Ogutu, Martin (2016). DBA Africa Management Review January Vol 6 No.1, 2016 pp 57-76 | en_US |
dc.identifier.uri | http://journals.uonbi.ac.ke/damr | |
dc.identifier.uri | http://hdl.handle.net/11295/95508 | |
dc.description.abstract | According to the upper echelons theory, TMT composition impacts on organizational
performance. However, empirical studies have found contradictory results with some
replication studies being unable to duplicate any previous findings. These
inconsistencies in empirical findings have led to the conclusion that the relationship
between TMT composition and firm performance is not a direct and straightforward
one as envisaged by the upper echelons theory. This has led to the search for the
variables that mediate or moderate this relationship. This study focused on family firms
and studied family firm specific variables of TMT composition namely family ratio,
number of generations in the TMT and number of nuclear units within the TMT. This
study established that the impact of TMT composition on firm performance in family
firms is mediated by group cohesion. This is because the family firm is fraught with
many dynamics among the family members some of which are not related to the
business. Due to this, it was concluded that whether or not the TMT composition in the
family firm impacted performance positively or not, was dependent upon the family’s
ability to pull in the same direction that is how cohesive the family was. In addition, it
was established that family firms pursuing complex strategies in terms of their products
or markets were likely to benefit the most from TMT composition. This is because the
strategic context triggered deliberations and information sharing which harnessed the
diverse skills availed by the TMT composition. Thus the strategy context moderated the
relationship between TMT composition and firm performance. It was also noted that a
complex strategic context was capable of triggering conflict and disagreements thus
negating the impact of TMT composition on firm performance. The study therefore
concluded that the impact of strategic context needed to be reviewed in light of the
group cohesiveness. Further it was noted that to fully understand the impact of TMT
composition on family firm performance, the moderating effect of strategic context and
the intervening effect of group cohesion needed to be considered. Due to the uniqueness
of the characteristics of family firms and the convergence of ownership and
management in family firms, the resource based view, stewardship and agency theories
needed to be considered in addition to the upper echelons theory when explaining the
impact of TMT composition on family firm performance. It was observed that the
strategic management field had lagged behind in research on family firms despite the
growing importance of family firms in modern day economies. In line with this it was
suggested that policy makers needed to design policies and legal frameworks that are
appropriate to family firms. The study encouraged families to get involved in the
management of their firms and foster cohesiveness among TMTs in order to derive
optimal results for their businesses. | en_US |
dc.language.iso | en | en_US |
dc.publisher | University of Nairobi | en_US |
dc.rights | Attribution-NonCommercial-NoDerivs 3.0 United States | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/3.0/us/ | * |
dc.subject | TMT Composition, cohesion, strategic context, family firms | en_US |
dc.title | Group Cohesion and Strategic Context On The Relationship Between Top Management Team Composition And Performance Of Family Firms: A Critical Review Of Literature | en_US |
dc.type | Article | en_US |