Competitive repertoire simplicity and firm performance: The moderating role of top management team heterogeneity

Walter J. Ferrier · Douglas W. Lyon

99 citations0/0 files storedManagerial and Decision Economics

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

Abstract

Abstract We extend Miller and Chen's (Strategic Manage J 1996; 17: 419–439) recent research on the impact of competitive repertoire simplicity on firm performance by exploring the extent to which top management team (TMT) demographic heterogeneity moderates this relationship. These authors found that competitive repertoire simplicity among firms in the airline industry was negatively related to firm performance. By contrast, our findings from a multi‐industry study suggest that strategic repertoire simplicity is positively related to performance for firms led by heterogeneous TMTs, and negatively related for less heterogeneous TMTs. Accordingly, this finding advances theory within competitive dynamics and strategic leadership. Copyright © 2004 John Wiley & Sons, Ltd.

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References

1980Competitive Strategy: Techniques for Analyzing Industries and Competitors 2006The Core Competence of the Corporation 1984Upper Echelons: The Organization as a Reflection of Its Top Managers 1984Upper Echelons: The Organization as a Reflection of Its Top Managers 1956An introduction to cybernetics 1971Industrial Market Structure and Economic Performance.1990WHAT'S IN A NAME? REPUTATION BUILDING AND CORPORATE STRATEGY.1990Econometric Models and Economic Forecasts

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