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Research on the Relationship between Top Management Team Cognitive Conflict and Corporate Performance in Private Enterprises

Author: ShenZhenLin
Tutor: WeiWenBin
School: Suzhou University
Course: Business management
Keywords: private enterprise top management team cognitive conflict corporate performance
CLC: F224
Type: Master's thesis
Year: 2011
Downloads: 100
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It is the Top Management Team (TMT) who makes important strategic decisions and plays a leading role in the enterprise’s managing activities and direction of development. Due to the differences on knowledge background and cognitive abilities for TMT, the conflict in team’s decision-making process inevitably comes into being, and this conflict is functional or destructive still need to be further distinguished, with the aim of exploring the effects of TMT cognitive conflict on corporate performance.This paper takes Upper Echelons Theory and Conflict Theory as the guide, using literature data method, questionnaire survey and empirical analysis method, from the perspective of TMT’s cognitive conflict discusses the effect of Private enterprise TMT cognitive conflict on the corporate performance and the intermediary mechanism. This research is altogether collected to 89 private enterprise TMT’s sample data, through the statistical software SPSS 18.0 to analyze the relevant data. This empirical study discovers that private enterprise TMT cognitive conflict has positive significantly effect on decision-making quality, decision commitment and corporate performance, decision-making quality and decision commitment have positive effect on corporate performance, also decision commitment and decision-making quality mediates partially the relationship between cognitive conflict and corporate performance. It has been discovered that decision commitment has positive significantly effect on decision-making quality, so the TMT’s function is not limited to formulating high quality decision-making, and more should improve the implementation effect of the decision-making, thus to realize the overall success of the decision-making. Finally, this paper put forward three aspects of management advice in allusion to private enterprise TMT:structure the top management team in conformity with the enterprise’s strategic choice; correctly recognize and reasonable guide cognitive conflict associated with task; realized the effective communication among top management team and improve the decision maker’s commitment.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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