Diversification and top management team complementarity: is performance improved by merging similar or dissimilar teams?
Article Abstract:
A study is conducted to examine the impact of the complementarity between the functional backgrounds of the top management team (TMT) of an acquiring company and that of the acquired firm on the performance of the merged organization. It uses data from a sample of 147 acquisitions that took place between 1986 and 1988. The study tests the following hypotheses: that management team complementarity will be positively related to post-acquisition corporate performance and will be inversely related to TMT turnover, that TMT turnover will be inversely related to post-acquisition performance, that TMT turnover mediates in the relationship between complementarity and post-acquisition performance, and that the impact of complementarity on performance will be greater for organizations with a related acquisition strategy than those without. The findings are discussed.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
The independent and joint effects of the skill and physical bases of relatedness in diversification
Article Abstract:
A multidimensional perspective on relatedness in diversification was formulated by investigating the independent and common effects of the skill and physical facets of the concept of relatedness. This study compared the manner by which the skill and physical bases identify relatedness and empirically tested the relationship of relatedness with performance. The data were culled from 158 major diversified manufacturing companies. Findings revealed that each base of relatedness did not have a significant influence on financial performance when examined singly. However, a combination of the two had a significant positive impact on performance. The results showed that different bases of relatedness can complement and extend each other.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Structure and process of diversification compensation strategy, and firm performance
Article Abstract:
Six hypotheses on how a company's performance may be influenced by the match between that company's approaches to compensation and to diversification were proposed. These hypotheses were tested using data collected from questionnaires returned by 243 companies. Findings of the study supported the assumption that a company's performance is enhanced when the compensation strategies it implements are in line with the extent and process of the diversification operations of the firm. Several issues pertaining to the relationship between compensation and diversification strategies that require further study were identified.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Criteria for Selecting a Treasury Management System. So you want to manage in the big leagues?
- Abstracts: R&D spending, domestic competition, and export performance of Japanese manufacturing firms. A sociological view on why firms differ
- Abstracts: Subdividers may use costs of future improvements to limit gains on sales. A simplified method for deciding whether to make fourth quarter asset purchases
- Abstracts: Literary criticism and the history of marketing thought: a new perspective on 'reading' marketing theory
- Abstracts: Customer-focused manufacturing strategy and the use of operations-based non-financial performance measures: a research note