Conceptual model of executive team members build change

Abstract: Different scholars executive team members change from their research perspective, the conclusions are different. This paper will summarize the results of previous studies based on the conceptual model was constructed to change the members of the executive team, the model major integrated high-order theory and agency theory, the study of three groups of antecedents executive team members change, and executive team members directly affect change.
Paper Keywords: executive team, agency theory, higher-order theory, social capital funded :: obtained in this paper in 2009, Anhui University of Finance and university subjects (ID: ACKYQ0937ZC) funding.
Introduction excellent management staff is the most valuable human resources to maintain a stable and efficient enterprises to obtain senior management team is the key to sustainable competitive advantage. However, in recent years, many companies have undergone senior management changes, such as a big shake Haier senior management, major changes in senior management personnel of the United States Electric, TCL Group and its subsidiary company executives frequent movement, Alibaba Group adjust the eight executives, particularly noteworthy is the advance and retreat of private enterprise issues intergenerational transmission phenomena and entrepreneurial team members, a large number of members of senior management changes to the academic community provides a good case study material, and how to use executive Team members changed to better explain and predict business performance, thus contributing to the sustainable development of enterprises and the healthy growth of a problem in theory and business circles of common concern. Many scholars working on the senior management team members change factors, but there are more scholars to study the impact of changes executive team members on organizational performance.
2. The members of the executive team changes antecedents Pfeffer (1983) proposed the use of sociology demographic characteristics model to study the stability of the executive team, on this basis, Hambrik and Mason (1984) put forward the famous 'high stage theory ', the theory that the senior management team of the demographic characteristics of variables can effectively explain and predict business performance. Over the next 20 years, scholars continue to confirm or challenge the higher-order theory, made a wealth of research results. One important direction is a member of the senior management team have done a lot of changes to the phenomenon, the results show that the characteristics of the senior management team, interpersonal and team environment and other external factors that affect the executive team changes. Domestic scholars mainly from the perspective of corporate governance research executives to change, the vast majority of samples used in the listed companies, such as Gong Yu Chi (2001) and senior research company performance changes and Zhu Hongjun (2002) for senior executives to replace The situation analysis, are used in the listed company data. In fact, the higher-order theory and agency theory is the strategic impact of the company's two different theoretical perspectives on the study of the senior management team, focusing on two different theories, Carpenter et al (2004) propose future research should focus on the integration of the two theories, and made more than one theoretical model, the model considers the external environment, organizational factors such as demographic characteristics antecedents and senior executive team member variables affect change and team composition, thereby affecting business performance.
2.1 external business environment is a social system, an inevitable resource exchange with the external environment. As a corporate executive team and the external environment, the key to 'contact' and must have the ability to obtain the necessary resources for the enterprise, an important role of the executive team is to strengthen contact with the external environment, Keck and Tushman (1995) rational - Economy On the view that the degree of stability within the team and the degree of environmental unconventional match. The dynamic nature of the external environment, the complexity and multidimensionality affect access to resources, opportunity identification and implementation of the strategy, thereby affecting the growth of enterprises. Executive team members change is a manifestation of the organization to adapt to the environment, when the team faced with complex, dynamic and unconventional work environment, such as poor team performance, highly diverse and intense industry competition, the team will face with many changes, including changes included members. DeFond and Park (1999) used the method to evaluate the relative performance of 301 listed companies in the United States between 1988-1993 executive changes occur as a sample empirical research, that the level of competition in the rate of change in senior management and the industry has a significant positive relationship: the higher the degree of competition in the industry, executives change the frequency is higher. In addition, the degree of improvement market is also the manager of the senior team members a reason for the change can not be ignored. Cultural factors also influence a regulatory factor in the change of the senior management team members, some scholars found: US businesses use the data findings with the use of Japanese corporate data results are very different.
2.2 According to agency theory organizational level, due to the characteristics of the agent behavior has an opaque, the principal must monitor the results of their actions, that the company's performance to reduce agent departure of its interests. Therefore, the performance of enterprises determine the likelihood of executives replaced. When the fall performance, increase the likelihood of executive turnover, a lot of research has focused on the relationship between the merits of replacing the company's senior executives and business performance. Impact of changes to domestic and foreign scholars have analyzed the top replacement for company performance, a major shareholder, was found unsatisfactory when the possibility of major shareholders to replace the company's performance and increase high-level replacement. The replacement of the relationship between the company and the executives acquisition research, is more typical of Martin and McConnell (1991) paper. This article takes the 1958-1984 years, 253 successfully implemented enterprise solutions for sample acquisition, investigated whether the transfer will affect the replacement of a controlling stake in the company executives. Denis (1995) found that when the purchase of the company's outside pressure, the mandatory replacement of senior executives is likely to occur. Factors affecting the level of research organizations from agency theory executive team members change can be summarized in three aspects: First, the relationship between transfer and senior members of the change of control between: By analyzing company mergers, acquisitions market level of activity and share buybacks relationship between factors and senior members of the change can be found outside of the control mechanisms of executive members of the change has significant influence; the second is by analyzing the relationship between the results of operations and changes among senior members; the third is the corporate governance mechanism the impact of changes on executive members, including external governance mechanisms and internal governance mechanisms. Furthermore, the nature, stage of development and strategic business updates and other firm characteristics variables also affect the executive team changes.
2.3 organizational behavior at the individual level executive team members have argued that the change will be affected by the demographic characteristics of the executives. According to ASA model Schneider (1987) proposed the formation of the executive team to follow 'a similar attraction' principle, the addition and withdrawal of members selectivity characteristics, entrants tend to choose their own on some features have certain similarities team, leavers are often quite different with other team members on some features. Pfeffer (1983) also believes that individuals choose to join with their own individual characteristics similar to the team, and when the difference is large, easily lead the individual to leave. Demographic characteristics of the gap between executives will affect the socialization process of team members, and ultimately affect the stability of the team and team performance. These variables include demographic characteristics of team members age, working time, education level, ethnicity, gender, etc. A lot of difference between the top management team research team members affected by the change, assume a linear relationship exists between the two, the greater the difference, the higher the turnover rate. Some scholars to question the assumption that the relationship between the two should not be a simple linear relationship monotonous. Pfeiffer and Riley believes that the senior management team (age and tenure) heterogeneity, the more will lead to conflict, the result will lead to more members of the left, the more similar the contrary, if the team members, then makes them limited promotion The more intense competitive opportunities, the results will also lead to more separation occurs, thus leaving the team the difference between the relationship should be non-linear U-shaped relationship.
3. The members of the senior management team directly affect changes in many studies on changes in executive member, directly to organize outcome variables, such as profit, operating performance and level of innovation and business growth and other metrics, as a result of changes in the executive team variable. Simple changes to the senior management team as an independent variable, due to the economic consequences of the change as the dependent variable, while ignoring the 'black box' in the operation of the process. This paper will directly affect members of the senior management team changes to do a review, in order to find open the 'black box' key.
3.1 Team cognitive theory implies a higher order team basic assumption that the executive team unobservable psychological factors such as cognitive and values can be observed by demographic characteristics to measure, with similar demographic characteristics of executive members Cognitive psychology and values are basically similar. Executive team members changed the perception changed teams, and to promote awareness of the heterogeneity of the senior management team the opportunity to the external environment, threats and understand their own strengths and weaknesses and to increase the content of the strategic plan. When members of the executive members to share knowledge with each other, share knowledge, members in the analysis and interpretation of the external environment, competitive situation it is easy to reach consensus, the development of improved efficiency of matching decisions and actions. Cannon-Bowers et al proposed a shared mental model that the team members in a similar way to organize and relevant knowledge tasks, roles, goals and abilities, shared mental model that reflects the executive team members have their own members knowledge and understanding of the character of the other members, and other aspects of temperament and social relations, and thus successfully, efficiently accomplish business decision task, the team's mental model is the task of interpretation of corporate strategy and perception. Senior management team and business performance for the content of understanding and planning strategies include positive correlation.
3.2 Social Capital traditional Chinese society is based on social relations, business success is largely dependent on the efforts of network administrators established relations with the outside world, for the high heterogeneity of the senior management team, its team members of society wide relationship with respect to the low heterogeneity executive team can integrate more social capital. Executive team members change affects social capital, social capital is to contact the team has actors and society as well as the ability to obtain scarce resources through this link, different personal characteristics and social status executive team members have social Capital is not the same. Gabbay & Leenders (1999) to define social capital executives: it is an intangible resource executives, this resource can help enterprises to obtain material, emotional information and assistance in order to achieve business goals. Heterogeneity higher executive team members, external networking team members more likely to diversify, the executive team can integrate external social capital quality is higher. He Yuanqiong, TIAN Zhi, Chen Yun (2007) that corporate executive team members must have the ability for companies to obtain the required resources, which include administrative and legal resources, survival and management resources, management and operational resources, spiritual and cultural resources, More importantly, the information resource. Their findings show that the empirical relationship executives and market environment, the non-market environment stakeholders is an important channel for the formation and development of their social capital. Which is the executive in the market environment, social capital, that executives should strengthen communication and exchanges with customers, suppliers, distributors and other stakeholders; non-market environment and its stakeholders, such as government officials, media, social the public, the market environment and the non-market environment, stakeholders of the enterprise is equally important.
3.3 operation of the executive team composition, structural features, including the senior management team, such as the executive team of the scale, hierarchy, leadership style, team executives and personnel characteristics, such as personality traits and demographic characteristics of members, will affecting the operation of the process of executive team members, including the coordination of these processes operate between members, communication, conflict management, leadership and motivation and other acts, interaction of team members directly affect the decision-making level, thereby affecting the strategic choices and organizational performance. Members of the executive team changes affect the team composition, thereby affecting the operation of the team process. In the structure of the executive team, the studies suggest that constitute the executive team can predict team communication and conflict. Williams and O'Reilly pointed out that the organization, the team demographics diversity within, outside groups and the emergence of the cognitive differences between individuals. In the demographic characteristics of the dominant variables such as age, gender, ethnicity than the hidden variables more often used as a standard of individual self-classification. Therefore, within the team, such as age heterogeneity caused by the satisfaction of the team members is reduced cohesion decline, reducing communication and cooperation within the team to improve the negative effects of conflict, many empirical studies support this view. Carpenter discusses the influence of the executive team content features in his study, he pointed out that the content features executive team, the senior management team is manager tenure as a member of the working group of the time, influenced his mode of interaction with other members ; the nature and depth of the team within the term also communicate with the relevant team. In the study of Greek enterprises, Papadakis & Barwise find the CEO's executive team in term will affect the degree of decentralization of decision-making time. TMT education and a sense of competition will affect the degree of mutual understanding and team decision-making process. Li Mao, Wang Guofeng and well Junta (2009) found that the dynamic process of the executive team three important factors - communication, conflict and decision-making quality of relationships, communication dimension of communication found in favor of the formation of a high quality specification decisions, The emotional conflict is not conducive to improving the quality of decision-making.
4. The members of the executive team model changes by more than literature analysis, this paper constructs a conceptual model of executive team members change (Figure 1). In this paper, the change and its impact on business growth from higher-order theory and agency theory, research executive team members. Quit executive team changes include former members of the executive team, or new members to join. Antecedents first senior team members from three changes: the external environment, including the intensity of competition in the industry, as well as the cultural background in which enterprises such as content manager market; including corporate performance, control and governance mechanisms, such as the transfer of content enterprise level; individual level age, tenure, education level and other team members' personal characteristics variables. Then the second part of the conceptual model, the team studied the impact of changes executive mechanism of business growth. According to the theory of higher order executive team demographic characteristics affect corporate performance, many scholars to verify the relationship between the senior management team heterogeneity and performance through empirical research, but did not reach the same conclusion. 贺小刚 and Shen Yu (2008) considers the entrepreneur team members appear to change, especially the mutation will have a significant impact on new ventures, not only due to the generation of alternate resources managed Penrose effect, but may be due to changes in cognitive entrepreneurs The resulting tissue dysfunctions. We believe that members of the executive team changes alter the degree of heterogeneity of the team, the team of cognitive and social relations teams, which have a significant impact on business growth. Among them, the team heterogeneity variables include changes after the team's age, tenure, education and professional experience, etc; team cognition team members on the business philosophy, cognitive ability and understanding as well as the opportunity to identify the values and vision and strategy, the formation of a shared mental model; the relationship between social capital, including internal and external team members have, internal relationship is the relationship between the members of the senior management team and other team members, shareholders, partners, employees, etc., external relations including government departments, industry associations , banks, customers, suppliers and vendors and other relationships. Members of the executive team changes altered the composition of the team members, thereby affecting the operation of the process, including coordination, communication, leadership and conflict, including a team. Cognitive heterogeneity executive team, as well as changes in the operation of the process of social capital team have affected the team decision quality, thereby affecting the sustained growth and healthy development of enterprises.

5. Summary of the conceptual model different scholars a senior team member turnover figure from their research executive members change research perspective, this paper summarizes the results of previous studies based on the construction of a conceptual model of executive team members change, the major integrated high-order model theory and agency theory, three groups of antecedents of executive team members change might come to different conclusions from previous studies. In addition, the executive team members have changed through the influence of a team of social capital, thereby affecting business growth, which is a new research path. Finally, many scholars believe that by collecting data of listed companies, the use of empirical research methods executive team members change, future research if you are using the case study method, which more closely comply with the reality, choose unusual and extreme case studies and more conducive to deep theory.
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