Browsing by Subject "Top Management Team"
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Item A power model of management team restructuring and executive exit in IPO-stage firms: antecedents and performance effects(Texas A&M University, 2005-11-01) Li, JunDespite an abundance of executive turnover research in the context of large public firms, little has focused on top executive change in entrepreneurial settings. This study attempts to develop a foundation of theory and evidence on management team restructuring and executive exit in new venture firms, especially for ventures which eventually go public. Taking a political perspective, the study develops and empirically tests a power model of management team restructuring and executive exit in the pre- and post-IPO periods. A central thesis of this study is that the relative power of the executive cadre shifts as an entrepreneurial firm converts from a private venture to a public company, due to the drastic change in firm political coalition structure and the skill requirements for executives. The change of power distribution among the top executives affects the likelihood of management team restructuring and executive exit. Both firm level and individual level factors were examined. The study also investigates the performance implications of pre-IPO management team restructuring and post-IPO executive exit. Empirical results support the major propositions of the power model. VC prestige was found to have a positive impact on management team restructuring and new executive entry before the IPO. Technical skills are negatively associated with pre-IPO executive exit but positively associated with post-IPO executive exit. The addition of new senior executives in the post-IPO period increases the likelihood of executive exit. In addition, when firm performance is low, adding new outside directors tends to increase the probability of executive exit in the post-IPO stage. The study found that firms that had restructured management teams before the IPO tend to have lower likelihood of executive exit in the post-IPO period. In the post-IPO stage, executives with prior public company managerial experience have a significantly lower likelihood of exit than non-managerial executives. Further, the study found that pre-IPO management team restructuring improves the firm??s pre-money market valuation at the IPO. The exits of managerial executives in the post-IPO period have negative effects on subsequent average ROA. The exits of financial executives negatively affect average shareholder return in the years following the exit events.Item Bridging the Macro-Micro Divide: An Examination of the Proximal Top Management Team Factors that Influence Strategy Implementation and Organizational Performance(2014-04-23) Mistry, SalOrganizational research has historically investigated strategy formulation while giving far less consideration to strategy implementation. This is surprising given that between 70 and 90 percent of formulated strategies fail. Moreover, the few studies that do address strategy implementation focus almost entirely on how the organization, a distal situational determinant, impacts strategy implementation. In addition to prior research focusing on distal situational determinants, most of these studies are conceptual or rely on qualitative or archival data. To fill this gap in theory and research, this dissertation proposes that an organization?s top management team (TMT) is a proximal determinant of strategy implementation, and more specifically, the TMT?s strategy implementation efforts. Indeed only by first understanding the strategists and their effects on TMT strategy implementation can one hope to gain clarity on the alarming rates of implementation failures. Drawing on ?macro-organizational? theory, this treatise develops a new theoretical framework that emphasizes TMTs as being an influential proximal determinant of strategy implementation. To my knowledge, no studies have examined the role that top executive teams have in strategy implementation. Furthermore, using ?micro-organizational? constructs, this dissertation examines the processes and structures that affect strategy implementation and organizational performance. In this sense, rather than argue (as many strategy scholars have) that distal organizational structures or processes influence strategy implementation, I argue a more proximal team structure of executive team interdependence and executive team processes influence the executive team?s strategy implementation, which, in turn, influences the organization?s performance. Accordingly, this dissertation offers an important theoretical contribution to both literature streams that move beyond extant conceptions that the distal organization and its attributes impact strategy implementation and bridges the prevalent micro-macro divide that exists in the literature today. Next, this dissertation provides a valuable empirical contribution by first applying a construct-oriented micro-organizational scholarly approach to tidy up extant strategy implementation and TMT process constructs and then submits these and other proposed factors to an empirical test. Last, given the strikingly high rates of strategy implementation failures, a practical implication of this dissertation is to help top executives optimize their structure, process, and strategy implementation tasks in order to enhance their organization?s performance.