The Moderating Effect Of TMT Heterogeneity And Environmental Uncertainty On Strategic Change Performance

The practice of Chinese enterprises strategic management is facing the hugeimpact brought out by severe competition, institutional and technologicalenvironment changes. Many enterprises have realized the strateg ies can not adapt tothe dynamic and competitive environment. Only by adjusting enterprise strategyappropriately can they obtain competitive advantage. But strategic change is notalways beneficial. How can enterprises promote enterprise strategic adjustmenteffectively to help them win the survival and gain higher performance in thedynamic environment? What factors in organization and environment can affect theimplementation effect of strategic change? These problems cause the studies forthinking the relationship between strategic change and performance (strategicchange performance).Based on the Resource-Based View, this paper discusses strategic changeperformance. Then, from the enterprise insider and outsider perspective, it considersthe influence of the organizational and environmental factors on the enterprisestrategic change performance. First, top management team as the strategic decisionmakers and executors in enterprises, their structure characteristics will undoubtedlyinfluence the implementation effect of st rategic change. This paper used the paneldata on the manufacturing industry listed in2007~2009to examine how TMTheterogeneity moderates the relationship between strategic change and firmperformance. Second, the strategy changes in enterprise aim at seeking survival andbetter performance. The strategic environment has been seen as an important factorinfluencing the performance of enterprise strategy change. In this paper, the paneldata of manufacturing listed companies in2003~2011was used to examine howenvironmental uncertainty moderates the relationship between the relationship ofstrategic change and firm performance.It is found that the level of strategic change has an inverted U-shapedrelationship with firm performance. As the level of change increases from slight tomoderate, performance increases; as the level of change increases from moderate togreat, performance declines. Further, tenure heterogeneity, education heterogeneityand experience heterogeneity as job-related TMT heterogeneity moderate theinverted U-shaped relationship. However, no moderating effect is found for age heterogeneity as non-job-related TMT heterogeneity. Moreover, the result shows thatenvironmental dynamics and complexity strengthen the positive relation betweenstrategy change and the performance, but alleviate the negative relationship. Finally,the linkage effects of TMT heterogeneity and environmental uncertainty areconsidered. The moderating effect of TMT heterogeneity on the relationship ofstrategic change and firm performance are comparatively analysed in differentenvironment.And the empirical result shows that environmental complexitystrengthens the moderating effect of TMT heterogeneity.