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Assessing psychological and environmental factors influencing the long-term orientation of TMTs
PurposeThis study identifies and examines psychological and environmental factors that influence the long-term orientation of top management teams (TMTs).Design/methodology/approachData on S&P 500 companies from 2011 to 2020 are collected from the Compustat database. Additional variables were me...
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Published in: | Journal of advances in management research 2023-04, Vol.20 (2), p.265-290 |
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Main Authors: | , |
Format: | Article |
Language: | English |
Subjects: | |
Citations: | Items that this one cites |
Online Access: | Get full text |
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Summary: | PurposeThis study identifies and examines psychological and environmental factors that influence the long-term orientation of top management teams (TMTs).Design/methodology/approachData on S&P 500 companies from 2011 to 2020 are collected from the Compustat database. Additional variables were measured through content analysis of earnings conference calls. This study used two-stage least squares regression with fixed effects to analyze the data and test the hypotheses. Appropriate diagnostic tests were conducted to ensure validity and eliminate endogeneity.FindingsThe results indicate that a chief executive officer’s (CEO) promotion focus positively and significantly influences the TMT's long-term orientation. However, the influence of prevention focus is statistically insignificant. Furthermore, the results indicate that environmental hostility moderates both relationships.Practical implicationsThe TMT's long-term orientation can be improved through the insights provided by this study.Originality/valueTo the authors’ knowledge, this is the first study to examine the collective effects of psychological and task environmental factors on the long-term orientation of the TMT. Additionally, this study sheds light on the internal dynamics of the top-management team. |
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ISSN: | 0972-7981 2049-3207 |
DOI: | 10.1108/JAMR-02-2022-0029 |