The Research On The Relationship Between The TMT Characters And The Strategic Change

The selection of this subject come from the ministry of education humanities fund in 2009 named The relationship between the TMT heterogeneity and the strategic change of China listed company.Top management team is very important to firm performance and organization development since it takes the mission of establishing and implementing corporate strategies. Research on top management team is also a widely concerned topic by scholars and managers in recent years. Tne studies on the relationship between top management team heterogeneity and firm performance are fruitful. However,existing empirical results are not explicit and consistent enough. The reason is that research methods are limited and several important moderating or intervening variables are neglected in those researches. Moreover, existing researches are from the developed countries that may restrict the application and popularization of the theory. Inconsistencies of TMT heterogeneity/performance relationships in prior researches show the necessity for further research. The content of this study is to apply the basic theory of top management team (Upper Echelons Theory) in the medicinal system reform context of China and analyze the relationship between top management team heterogeneity and firm performance. Meanwhile, this research introduces several important moderator variables in order to avoid the limitations of existing domestic researches. Researches on strategy change theories are sorted into two schools, namely the content school and the process school.Research methods include the organization adaptability method and the ecology method. In perspective of organizational ecology, this paper reviews representative literatures about strategy change theories and summarizes relevant research methods in this field, with the hope of evaluating the advantages and disadvantages of different research methods. In order to perfect the theory, this paper suggests an integrated research on complexity theory and ecology strategy change theory. Finally, this paper advances two development trends for the research on strategy change, with the hope of supplying a direction for management scholars’future research. Besides, researches on the complexity of strategy change are short of support from empirical data. Therefore, we can predict that considerable empirical research methods and cases will appear in this field. For developing countries and regions, the empirical research on Chinese enterprises’strategy change since the reform and opening-up policy is valuable. Compared with conditions in developed countries, the market environment and relevant laws in developing countries change frequently, so do enterprises’ strategy change and adjustment, especially for small and medium-sized enterprises. It will be a hot in the empirical researches on strategy change in the future.This paper base on the Medicine and health system reform in China from the 2009.About 30 years later from the reform and openness, we are in a economy systerm reform and industrial structure up time. The enterprise take on heavy task in this change to be the economy engine. Furthermore, the international situation become more and more severity after our country joined in the WTO. The chinese enterprise management face to the austere challenge.The government also adjust the industry policy. So, the circumstance which the enterprises in become more and more complex. It is impacted both of competition outside and policy inside. In this situation, our industry face to the more change and renewal. At the some time, with the market economy system become more and more perfecet, the native enterprises’international connection become more and more common. Under the pressure of inside and outside, the circumstance outside become more complex,and the business decision become more difficulty.So, how to deal with this dynamic circumstance is the most important problem for our enterprise. In my opinion, keep changing will be the only answer. But, how to investigate the strategic change will be the most siginificant problem for most of the scholar of the strategic management.Actually, The core of strategic management is to ceaselessly attribute the performance difference and strategic choice to some reason, in order to find out the formula for success which can enhance the sustainable competitive strength for a corporaton. From Porter’s industrial economics to resource-oriented theory, scholars in different schools have done a great deal of research in this field. Despite their achievements they all over-simply treat an organization as an abstract and rational individual. The Upper echelon, advanced by Hambrick and Mason, is an amendment former theories. They believes that the top management is the key factor for a corporation, they thought that we can find out the answer of the performance difference and strategic choice through the top management team’s psychological traits and their chatacters.In our opinion, the source of the strategy is the top management team. So, the aim of this paper is to find out the relationship between the Upper echelon and the strategic change.In consideration of the problems of this paper,we set 3 aspects of the content in this paper.The first one:most of the scholars in the strategy management don’t agree with the pure rationality hypothesis. No matter what is the essence of strategic change,but corporation strategy comes into being in the form of mentality in the managers’mind, especially the top managers.Top managers’strategy thoughts are the basic rudiments and the conflicts of them are the fundamental source. Thereby, from perspective of cognition studying the top managers’strategy and its change, which has profound theoretical meaning.Secondly, By researches we find that there are more failure cases than success cases in strategy change field in recent years. It indicates that strategy change’s motives and results, differing from the traditional idea, are not easier. Signifi can’t changes of environment re-shape the industry and the border of enterprises. Driven by consumers’needs and technological progresses, the globalization has great impacts on all industries. Managers and scholars name the sharp change as "hypercompetitive" (Ilinitch, D’Aveni & Lewin,1996). In a hypercompetitive environment, we should study strategy change from a new perspective.Thirdly, base on the tow contents of the paper,we argue that the strategic change will be the medirater between the TMT and the performance of the company. Then we use the date of the medical company in China to prove our hypothesis. And we hope the conclusion of this paper will help the company in China to carry out the system change.Today, the border of organizations tends to be fuzzier in the "hypercompetitive". The high failure rate of corporate strategy change arouses more thoughts on present strategy change theories. From analyses above, we know that there are also some paradoxes in the ecology-based strategy change theory. That is a difficulty in the research on strategy change.The process of this research is as followed:confirm the research direction,objects and problems; select the case company; set up the conception framework; analyse and compare relevant problems of the case; study the proposition and finally draw research conclusions and propose suggestions. This paper is divided into 7 chapters and 3 levels:First level(chapter1-2)is the fundamental part about the research clue of and setting up main points. It mainly presents the general summary,theory comment, research clue and theoretical foundation of strategic change; The second level(chapter3-5)is the main part,which focues on the positive analysis and analysis from the framwork of this paper; The third level(chapter6-7)is about research proposition, conclusion and suggestions. On the basis of summarizing confirming research and making conclusions,it puts forward the countermeasure and suggestion for strategic change of domestic enterprises.After reviewing existing literatures, this empirical research advances a research model and proposes relevant hypotheses. The pharmaceuticals China listed companies of Shanghai and Shenzhen is taken as a whole sample. Data is analyzed by SPSS (Version 17.0). The results are as following:Firstly, top management team age heterogeneity and educational heterogeneity are both negative related to firm performance.Secondly, there is negative moderate relationship between the interaction on proportion of state owned stock and top management team tenure heterogeneity in chinese medical listed company.Thirdly, there is negative relationship between the top management team heterogeneity and the dominate strategic change in chinese medical listed company.Fourthly, the attention of the top management team close to the enterprise problem with the top management team heterogeneity reduce in chinese medical listed company.Fifthly, the top management team will take the dominate strategic change when their attention close to the enterprise problem. Sixthly, there is positive relationship between the dominate strategic change and the performance of the company.Furthermore, Chinese institutional context and cultural traditions are quite unique. Analyzing the relationship of top management team heterogeneity and firm performance under Chinese social backgrounds will opposite the foreign conclusion and while several moderator variables being introduced, this research may extend the limitations of Upper Echelons Theory and broaden the application of this theory in China. It also contributes to a better understanding of the influence of Chinese top management team characteristics. The results enhance the substance of top management team theory. The selecting of the moderator variables and data procession method in this empirical research provides a new angle of view for further top management team theory in China. Furthermore, this research dig the orgnization adaptation cycle theory deeply and advance new theory model.