Negative performance feedback and structural changes within top management teams

Aktan, Aras Can and Castellucci, Fabrizio (2023) Negative performance feedback and structural changes within top management teams. In: 83rd Annual Meeting of the Academy of Management, Boston, Massachusetts, USA

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The research on top management teams (TMTs) has mostly focused on the composition, processes, incentives, and leaders of TMTs, with limited attention to the structural aspects. In this study, we develop a comprehensive model for TMT structural reconfigurations by integrating the TMT structural interdependence framework with the behavioral theory of the firm. By characterizing decision makers as boundedly rational that rely on performance feedback, we investigate how negative performance feedback influences TMT horizontal, vertical and reward interdependence. After analyzing data from 260 Standard and Poor (S&P) firms between 2007 and 2018, we find that when firms face negative performance feedback, its TMT horizontal interdependence decreases but its TMT vertical and reward interdependence increases. Additionally, we discover that TMT horizontal and reward interdependence are impacted more from social and vertical interdependence more from historical aspirations. The findings of this study introduce important contributions into the literatures on top management teams and behavioral theory of the firm.
Item Type: Papers in Conference Proceedings
Divisions: Sabancı Business School > Management and Strategy
Sabancı Business School
Depositing User: Can Aktan
Date Deposited: 04 Oct 2023 10:16
Last Modified: 04 Oct 2023 10:16

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