An empirical study of top management characteristics and entrepreneurship on firms competence and performance

Abstract

Ever since Hambrick and Mason proposed upper echelon theory in 1984, top management team (TMT) issues have been received tremendous attentions from academician and practitioners. Especially in the dynamic, fast-moving, and global world, the importance of TMT has become inevitably important nowadays. TMT is the soul of organization in that they make strategic decisions which effect firms future. Furthermore, splendid performance stems from the firms learning ability, the attitude toward entrepre-neurial activities, and the emphasis of core competence, all of these issues which are affected by TMT characteristics. Hence, this study attempts to integrate relevant literature to develop a comprehensive research model, as well as to investigate the interrelationships among TMT characteristics, absorptive capacity, core competence, entrepreneurial orientation, managerial performance. Through a series of questionnaire survey, the results of this study indicate that TMT functional background diversity and educational background level have significantinfluences on a firms absorptive capacity, entrepreneurial orientation andcore competence have significant impacts on its core competence. Furthermore, afirms absorptive capacity and entrepreneurial orientation. Finally, the results also­suggested that firms characterized by higher entrepreneurial orientation, absorptivecapacity and core competence are more likely to gain excellent managerial performance.