The Interaction Effects of Top Management Team Attributes and Environment on Organizational Growth

• Main Authors: D. Agus Harjito, Zunaidah Sulong
• Format: Article
• Language: English
• Published: Universitas Islam Indonesia 2009-08-01
• Series: Jurnal Siasat Bisnis
• Online Access: http://journal.uii.ac.id/index.php/JSB/article/view/990

This paper attempts to explore how TMT (Top Management Team) attributes interact with environment dimensions to influence organizational growth. Specifically, this study will examine environmental dimensions as a potentially important moderator of the association between TMT attributes and organizational growth. However, the overall findings provide mixed results for the hypotheses tested. The results of direct effect show that: (1) organizational growth exhibits a significant positive relationship with TMT tenure; (2) TMT functional heterogeneity is insignificant with no change in the variance of organizational growth; and (3) positive but insignificant relationship between industrial heterogeneity and organizational growth. Furthermore, the interaction effect results indicate that: (1) as munificence increases, the relationship between TMT tenure and organizational growth shows increasingly positive; (2) concentration, dynamism and munificence moderate the relationship between TMT functional heterogeneity and organizational growth; (3) finally, the interaction effect also provide mixed results, such: as environment concentration increases, the relationship between TMT industrial heterogeneity and organizational growth increases positively; by contrast, as environment dynamism increases, the relationship between TMT industrial heterogeneity and organizational growth increases negatively; while the interaction between TMT industrial heterogeneity and environment munificence is not significant to explain the organizational growth.<br /><br />Key words: Organization growth, environment, management team.<br />