The interface of the top management team and the board: a dynamic managerial capabilities perspective

Huynh, Kim, Wilden, Ralf, and Gudergan, Siegfried (2022) The interface of the top management team and the board: a dynamic managerial capabilities perspective. Long Range Planning, 55 (3). 102194.

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Although top management teams use their human capital, social capital, and cognition (i.e., dynamic managerial capabilities) to drive strategic change in their firms, faultlines within these teams may dampen the strategic change that they produce. While boards can enable but also restrict these change efforts, we know little about how precisely a board’s monitoring and advice-giving condition the impact of the top management team’s dynamic managerial capabilities on strategic change. We clarify how intense monitoring and advice-giving affect strategic change when faultlines between the top management team’s and board’s dynamic managerial capabilities are more or less salient. We explain that intense monitoring further stifles both the breadth and speed of strategic change that can be accomplished, and that this is more pronounced when the faultlines between the two bodies are strong. Furthermore, we outline that intensive advice-giving can be beneficial in improving the breadth of strategic change, but more so when these faultlines are weak and less so when they are strong. Notably we illuminate that the reverse happens in terms of speed of strategic change: intensive advice-giving can be detrimental engendering a further dampening of strategic change speed which is more pronounced when these faultlines are strong but less when they are weak.

Item ID: 72384
Item Type: Article (Research - C1)
ISSN: 1873-1872
Keywords: top management team ; board ; dynamic managerial capabilities ; dynamic capability ; strategic change ; monitoring ; advice-giving ; faultlines
Copyright Information: © 2022 Elsevier Ltd. All rights reserved.
Date Deposited: 28 Feb 2022 03:15
FoR Codes: 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3507 Strategy, management and organisational behaviour > 350718 Strategy @ 100%
SEO Codes: 28 EXPANDING KNOWLEDGE > 2801 Expanding knowledge > 280106 Expanding knowledge in commerce, management, tourism and services @ 100%
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