CEO-TMT Exchange Quality and Firm Performance: The Role of Competitive Behaviors

• Main Authors: Pei-chun Lin, 林佩諄
• Other Authors: Hao-Chieh Lin
• Format: Others
• Language: en_US
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/77982994382644291815

碩士 === 國立中山大學 === 國際經營管理碩士學程 === 104 === This study draws upon the upper echelons, competitive dynamics and leader- member exchange (LMX) perspectives to investigate how CEO-top management team (TMT) exchange quality affects firm competitive aggressiveness, and then firm performance. The mediating effect of competitive aggressiveness and the moderating role of CEO-TMT exchange differentiation are also explored. The unit of analysis is at firm level. Based on a survey sample including 341 executives in 134 companies collected from 1,800 TSE, OTC and ROTC firms listed in the Taiwan Economic Journal (TEJ) database, the findings reveal a good model fit and support all of the hypotheses. Specifically, CEO-TMT exchange quality is positively related to competitive aggressiveness, which in turn positively affects firm performance, as assessed by the Return on Asset (ROA). The mediating role of competitive aggressiveness as well as the negative moderating effect of CEO-TMT exchange differentiation are also supported. This research contributes to the upper echelons, LMX and competitive dynamics theories by identifying the role of CEOs from the other TMT members and examining their socio-psychometric dynamics. The study also contributes to the LMX theory by expanding the examination from typical lower-level employees to TMT-level. An examination of CEO-TMT exchange and its association with competitive aggressiveness also extends the competitive dynamics perspective, which thus far remains largely silent on the role of CEO in the competitive arena. Implications for practices and future directions are discussed well.