Ken A. Smith

Top Management Team Demography and Process: The Role of Social Integration and Communication

Examines the effect of team demography on firm performance. Three models of team demography, process, and firm performance are considered: direct demography, process, and the intervening model. The demography model, which holds that team demography is the sole determinant of performance outcomes, is modeled in terms of heterogeneity, team tenure, and team size. The process model, which purports that demography and process contribute separately to performance outcomes, measures demography in the same terms as the demography model and measures process in terms of social integration, informal communication, and communication frequency. The intervening model proposes that team demography affects team process and in turn influences process. Data were collected from 53 U.S. high-technology firms, through interviews and surveys of the firm CEOs and their top management teams. The results show little support for the demography model, while partial support is shown for the intervening model. Team process is shown to have a direct impact on performance while demography is shown to have direct and indirect effects. These results indicate that keeping team size small enhances informal communication and social integration. It is evidence that the relationship between team demography, process and performance is not straightforward. (SRD)

Top management team diversity, group process, and strategic consensus

This study integrated concepts from upper echelons, group process and social cognition theories to investigate how demographic diversity and group processes influence strategic consensus within the top management team (TMT), where strategic consensus is defined as the degree to which individual mental models of strategy overlap. Data from 76 high-technology firms in the United States and Ireland were used to examine three alternative models. The results showed that while demographic diversity alone did have effects on strategic consensus the overall fit of the model was not strong. Adding two intervening group process variables, interpersonal conflict and agreement-seeking, to the model greatly improved the overall relationship with strategic consensus. For the most part, TMT diversity had negative effects on strategic consensus. The model with superior fit showed both direct and indirect effects of diversity on strategic consensus. Copyright

Interfirm Alliances in the Small Business: The Role of Social Networks

In light of the increasing importance of strategic alliances in shaping competition, this study explored whether the social network of small firm executives can be leveraged to facilitate the establishment of interfirm alliances. Analyses are based on a mail survey of 149 small manufacturing firms in the northeast United States. Results indicate that the social networks of senior executives account for 11–22 percent of the variance in the degree to which firms engage in alliances, depending on the type of alliance. Results also show that the number of interfirm alliances is positively related to several networking properties (propensity to network, strength of ties, and network prestige). Findings are discussed in the context of network theory, social embeddedness, and the overall implications for management researchers and practitioners.

Transactors, Transformers and Beyond. A Multi-Method Development of a Theoretical Typology of Leadership.

Extends the transactional‐transformational model of leadership by deductively developing four theoretical behavioral types of leadership based on a historical analysis of leadership literature. Then, in an exploratory empirical phase, uses two data sets to inductively develop alternative models of leadership types. Finally, with a third data set, tests several theoretically plausible typologies using second‐order confirmatory factor analysis (CFA). The results of the CFA generally support the existence of four leadership types: directive leadership, transactional leadership, transformational leadership, and empowering leadership.

Nationality and work role interactions: A cultural contrast of Israeli and U.S. entrepreneurs' versus managers' needs

Abstract The globalization of business ventures and the parallel search for sources of international competitive advantage have stimulated research relating cultural differences to entrepreneurial and managerial behaviors. Recent work by McGrath, MacMillan, and Scheinberg (1992) encouraged studies of managers and entrepreneurs in different cultures, suggesting that these comparisons may “… shed additional light into the interrelations between social structure, wealth creation, and cultural beliefs” (McGrath el at. 1992, p. 116). This study follows that advice. Cultural differences are powerful determinants of behavior, and many studies support the notion that managerial behavior must adapt to the national cultural setting to achieve success. A growing stream of entrepreneurial behavior research has explored differences in motivational needs between entrepreneurs and non-entrepreneurs of different countries, and found parallel differences across cultures. Given these views, we might expect to find need differences between entrepreneurs and managers within countries however, some entrepreneurship researchers have concluded that U.S. managers and entrepreneurs are more alike than different. To better understand need profile differences between and within cultures, we use a theory that suggests that culture is an important determinant of work behavior. The process through which culture affects work behaviors is described in “Cultural Self-representation Theory” (Erez and Earley, 1993). Based upon this theory, inferences from the entrepreneurial archetype, and analysis of the contrast between the cultures of Israel and the U.S., we propose that: (1) entrepreneurs and managers have different motivational needs within some national cultures, and (2) across national cultures there are systematic differences in motivational needs. Based on these premises, an interaction hypothesis between work role and nationality is suggested because of the importance of both culture and work role in determining motivational need differences. Data are collected from over 370 Israeli and U.S. entrepreneurs and managers. Results support cultural self-representation theory for the Israeli-U.S. and entrepreneur-manager case, because interactions between nationality and work role are exposed for various needs. This finding suggests that cultural differences are indeed important for understanding management motivational needs in different nations, and that the effectiveness of entrepreneurial approaches to management may be culture-sensitive. The study illustrates work-role differences between Israeli managers and entrepreneurs. We confirm past conclusions about U.S. entrepreneur-manager need similarities, and suggest that these need similarities are supported by the individualistic culture within U.S. organizations.

Organizational learning and resource‐based theory: an integrative model

In recent years, resource‐based theory has emerged as one of the most promising theoretical frameworks in the field of strategic management. Unfortunately, past articulations of the theory have adopted a static orientation, with the result that organizational learning ‐ a dynamic process ‐ has been excluded from the discussion. Presents a model designed to incorporate organizational learning effects into the resource‐based view. Then applies the model to a number of case examples to demonstrate the importance of including organizational learning as a component of resource‐based theory. Concludes that organizational learning is itself a strategic capability or resource important to the process of building and maintaining competitive advantage.

Tough times make tough bosses: A meso analysis of ceo leader behavior

Abstract This research investigates relationships between financial performance of the firm and subsequent chief executive officer (CEO) leader behaviors. The study was inspired by previous microlevel research that found that leaders respond to poorly performing subordinates with greater use of directive behaviors and punishment. Extrapolating from these microlevel findings, we posited that CEOs of firms with poor financial performance will demonstrate greater “strongman” or “tough” leader behaviors than CEOs of higher performing firms. Leader behavior descriptions were collected from the subordinates of CEOs at 56 high technology firms in a large metropolitan area. Generally, the results supported the notion that CEOs of poorer performing firms were “tougher” in their leader behavior toward direct-report members of their top management team than CEOs of higher performing companies. This research is an example of “meso” level research, where an organizational-level dimension—financial performance—is correlated with an individual-level dimension—leader behavior.