Research On The Impact Of Senior Management Team Heterogeneity On Business Performance

Since the new century,the internal and external environment faced by Chinese enterprises in the development process is becoming more and more complicated,the competitive pressure is also becoming bigger.It is a major difficulty for enterprises'management teams to formulate the correct strategic decision-making to lead the enterprises in the complex environment,and the quality of enterprises' Top Management Teams is also an important factor for the level of strategic decision-making.It will have a significant impact on business performance.So the research on top management has been a research hotspot for Upper Echelons Theory.Top Management Team heterogeneity is a key issue in the field of Top Management Team.However,there are some inconsistences in the previous studies on the heterogeneity and performance.In the Top Management Team,CEO is the team's core leadership and he or she is responsible for enterprise's common management activities,his or her power will undoubtedly have an impact on the process of strategic development.In this paper,the CEO power is introduced into the study of the relationship between the heterogeneity of Top Management Team and the business performance.I will study this relationship from a new perspective,and the business performance is divided into short-term business performance and long-term business performance.This paper tries to provide theoretical support and practical countermeasures for the development and perfection of enterprise system in our country at this stage.Based on the Upper Echelons Theory,Organizational Hierarchy Theory and Human Resource Theory,this paper studies the influence of CEO power on the heterogeneity of Top Management Team,it based on the data from 2009 to 2016 in Shanghai and Shenzhen Stock Exchanges,besides this paper uses multiple linear regression and regulatory effect test and other methods to explore the relationship of Top Management Team heterogeneity and long-term and short-term business performance and how the CEO power will affect their relationship.The findings are as follows:(1)The Top Management Team heterogeneity of age,education level and profession background have a significant positive impact on the enterprises'short-term business performance,and the Top Management Team's tenure heterogeneity is negatively correlated with the enterprises' short-term business performance;(2)CEO Power negatively moderates the relationship between Top Management Team age and tenure heterogeneity and short-term business performance;(3)The Top Management Team heterogeneity of age,tenure and professional background is positively related to the long-term business performance;(4)CEO power negatively moderates the relationship between Top Management Team's age,tenure heterogeneity and long-term business performance.In the end,the corresponding countermeasures and suggestions are put forward according to the conclusion of the study.