Study On Top Management Team Heterogeneity’s Effects On Innovation Performance In Company A

The top management team,as the maker and organizer of enterprise strategic decision,undertakes the mission of formulating and implementing enterprise strategy.Whether the structure of the top management team is reasonable is related to the ability of the enterprise to improve the level of innovation and the ability to innovate.Therefore,it is of great significance to study the impact of the heterogeneity of top management team on the innovation performance of enterprises.This article takes Company A as a case company to carry on the research,and at the same time,based on the perspective of life cycle,adopts the comparative analysis method,the factor analysis method,the gray correlation analysis method and other research methods,explores the impact of the top management team heterogeneity of the case company on innovation performance from the perspective of dynamic development.While verifying and revising the empirical research conclusions,in order to better understand the effect of the top management team heterogeneity of Company A in different periods on innovation performance,it will provide some references for company A and even more companies in the same industry to select members of top management team at different times.Firstly,in order to clarify the characteristics of the company A ’s top management team structure and the status of innovation,on the one hand,this article sorts out the management changes of the case company from 1997 to 2018,it analyzes the current status of company A’s executive changes from the number of executive changes,the reasons for the departure of executives,and the types of executive succession.On the other hand,the comparative analysis method is used to compare the innovation level of Company A with the industry from the perspective of R&D and patents to clarify its innovation level,after that,by analyzing the innovation level before and after the typical executive changes,the positive impact of company A’s executive change was further clarified.Secondly,in order to further explore that whether the change of executives in the case company could impact the levels of top management team heterogeneity,or whether the high or low levels of the heterogeneity of top management team can promote the improvement of enterprise innovation performance,and which top management team heterogeneity can improve the innovation performance,so the Herfindahl index and standard deviation were used to specifically measure the heterogeneity levels of the top management team of the case company,at the same time,the company’s innovation performance was analyzed by factor analysis method from three aspects: funding capacity,research and development capacity,and output capacity.Finally,combined with life cycle theory,creatively using correlation analysis method and gray correlation analysis method to explore the relationship between the two factors,and combined with the previous empirical research conclusions to evaluate and analyze the research results.By exploring the relationship between the heterogeneity of the top management team and the innovation performance of company A,this article finds that the effects of each heterogeneity are not the same at different stages of the development of the case company.Based on the research results obtained,this article puts forward some suggestions from the perspective of improving the ability of top management teams to improve enterprise innovation performance: increasing gender heterogeneity at the initial stage,increase the proportion of female executive to promote the formation of a good enterprise atmosphere;focusing on the heterogeneity of education levels,and achieve the complementarity of professional knowledge and practical skills of executive members;tapping occupational backgrounds heterogeneity,broaden the problem analysis thinking and comprehensive decision-making vision of the top management team;coordinating term heterogeneity,enrich the cognitive structure of the top management team and the foundation of social experience;balancing heterogeneity of overseas backgrounds to promote the combination of decision-making localization and foreign advanced experience.