Top management team characteristics, decision-making style, and organizational performance

The purpose of this paper is to clarify the relationships among top management team (TMT) characteristics, strategic decision-making styles, and performance. A pair of questionnaires was distributed for each firm; one is for the leader, and the other is for the follower. Using structural equation modeling with data collected from 198 pairs of samples in Taiwan, the results indicated that TMT characteristics, including risk-taking propensity, innovative personality, and effective communication ability did have effects on strategic decision-making styles, which, in turn, affected the performance of each company. The contribution to theory and managerial implications of this study as well as directions for future research are discussed.