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The impacts of top management team characteristics on entrepreneurial strategic orientation: The moderating effects of industrial environment and corporate ownership

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Purpose ‐ The paper aims to empirically examine the questions of how top management team (TMT) characteristics, including TMT heterogeneity and vertical dyads differences between TMT and Board Director, influence entrepreneurial strategic orientation, as well as how industry environment and corporate ownership moderate those relationships. Design/methodology/approach ‐ The paper designs the panel data on the listed companies of China's Small and Medium-sized Enterprises Board for the period 2006-2010, and uses hierarchical regression analysis and grouping regression analysis when examining the relationships among variables involved. Findings ‐ The paper provides empirical insights about how top management team (TMT) characteristics, including TMT heterogeneity and vertical dyads differences between TMT and Board Director, influence entrepreneurial strategic orientation, as well as how industry environment and corporate ownership moderate those relationships. It suggests that, except for TMT educational background, the heterogeneity of TMT age, gender, functional experience, and the vertical dyad differences between TMT and board chairperson significantly and positively impact ESO. Furthermore, industry environment and corporate ownership will moderate the relationship between TMT characteristics and ESO. Originality/value ‐ This paper fulfills an identified need to study how top management team characteristics influence entrepreneurial strategic orientation, as well as how industry environment and corporate ownership moderate those relationships.
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Keywords: Business strategy; Corporate governance; Entrepreneurship

Document Type: Research Article

Publication date: 11 March 2014

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