Top management teams characteristics and firms performance: literature review and avenues for future research

Purpose The purpose of this paper is to review the empirical literature on the relationship between the characteristics of the top management teams (TMTs) and the performance of entrepreneurial firms. Design/methodology/approach A literature review was carried out on 33 empirical studies related to TMTs and performance through analyzing and summarizing the quantitative studies conducted in this area. Findings The results of the literature review show that the relationship between TMTs (demographics and heterogeneity) and the performance of entrepreneurial firms is not straightforward and further investigation is still needed in this area. Practical implications The author maps the theoretical and empirical research of TMT demographics and heterogeneity in relation to firms' performance and possible moderators and mediators, which govern the relationship between TMT composition and firms' performance. Originality/value The author presents a detailed future research agenda for the purpose of advancing the theoretical and empirical knowledge on TMT-performance links. The review provides a comprehensive picture of TMT-firms' performance literature and what should be done to enrich the literature.