The Influence of Top Management Teams in the Strategic Orientation and Performance of Small and Medium‐sized Enterprises

Alejandro Escribá‐Esteve · Luz Sánchez Peinado · Esther Sánchez Peinado

192 citations0/0 files storedBritish Journal of Management

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Team Dynamics and Performance Innovation and Knowledge Management Management and Organizational Practices

Abstract

Identifying which factors affect firms' performance is a critical issue in strategic management research. This paper addresses the influence of managerial team over the behaviour and performance of small and medium‐sized enterprises (SMEs). By treating top management team (TMT) characteristics as predictors of a firm's strategic orientation, we seek to provide a more complete understanding of how the characteristics of managerial teams shape decision‐making processes and SMEs' behaviours in order to successfully compete in low munificent environments. Based on primary data regarding managerial characteristics and firms' behaviours of a sample of 295 SMEs, our results confirm that a firm's strategic orientation plays a mediating role in explaining how TMT characteristics determine SMEs' performance.

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