Empirical study on the relationship among ownership structures, cognitive diversity of top management team and entrepreneurial strategic orientation

Abstract

Abstract: Using panel data on the listed companies of the China's Small and Medium-sized Enterprises Board for 2006-2010 period, the article empirically examined the effects of cognitive diversity of top management team (TMT) on entrepreneurial strategic orientation (ESO), as well as the moderating effects of ownership structures including ownership concentration and equity restriction. The empirical results indicated that, except for the TMT's diversity of educational background, the diversities of TMT's age and tenure have significantly positive effects on age and tenure diversities ESO. Further, ownership concentration has significantly negative effect on the age and tenure diversities as well as negatively moderating effects on the relationship between these variables and ESO, but the direct effect and moderating effect of equity restriction is found to be positive. However, both ownership concentration and equity restriction don't have significantly moderating effect on TMT's age and tenure diversities and ESO. These findings have some theoretical and practical implications for optimizing ownership structure, building TMT and designing ESO within corporate.

Key words: cognitive diversity of TMT, ownership structures, entrepreneurial strategic orientation, R&D investment

CLC Number:

F279.23

Yang Lin. Empirical study on the relationship among ownership structures, cognitive diversity of top management team and entrepreneurial strategic orientation[J]. Science Research Management, 2014, 35(5): 93-106.

References

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