The Impact of Top Management Team Demography on Firm Performance in China

Liqun Wei; Chung Ming Lau; Michael N Young; Zhihui Wang

doi:10.1057/palgrave.abm.9200130

The Impact of Top Management Team Demography on Firm Performance in China

Liqun Wei, Chung Ming Lau, Michael N Young, Zhihui Wang

Department of Management, Marketing and Information Systems

Research output: Contribution to journal › Journal article › peer-review

Abstract

This study examines the relationship between the demographic characteristics of top management teams (TMT) and firm performance in China. TMT members from Chinese firms were interviewed to see if the issues identified in the extant literature were relevant. This qualitative procedure was followed because of the exploratory state of upper echelons research in China. The second part of the study describes an empirical study conducted on a sample of publicly listed firms from a variety of industries. We tested the impact of average age as well as TMT heterogeneity on firm performance. In brief, we found that the average age of the TMT was positively related to performance. We also found negative relationships between TMT education heterogeneity and experience heterogeneity with firm performance. We develop an explanation for these results based on Chinese culture and the transitional state of the Chinese economy.

Original language	English
Pages (from-to)	227-250
Number of pages	24
Journal	Asian Business & Management
Volume	4
Issue number	3
DOIs	https://doi.org/10.1057/palgrave.abm.9200130
Publication status	Published - 11 Aug 2005

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10.1057/palgrave.abm.9200130

Cite this

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title = "The Impact of Top Management Team Demography on Firm Performance in China",

abstract = "This study examines the relationship between the demographic characteristics of top management teams (TMT) and firm performance in China. TMT members from Chinese firms were interviewed to see if the issues identified in the extant literature were relevant. This qualitative procedure was followed because of the exploratory state of upper echelons research in China. The second part of the study describes an empirical study conducted on a sample of publicly listed firms from a variety of industries. We tested the impact of average age as well as TMT heterogeneity on firm performance. In brief, we found that the average age of the TMT was positively related to performance. We also found negative relationships between TMT education heterogeneity and experience heterogeneity with firm performance. We develop an explanation for these results based on Chinese culture and the transitional state of the Chinese economy.",

author = "Liqun Wei and Lau, {Chung Ming} and Young, {Michael N} and Zhihui Wang",

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AB - This study examines the relationship between the demographic characteristics of top management teams (TMT) and firm performance in China. TMT members from Chinese firms were interviewed to see if the issues identified in the extant literature were relevant. This qualitative procedure was followed because of the exploratory state of upper echelons research in China. The second part of the study describes an empirical study conducted on a sample of publicly listed firms from a variety of industries. We tested the impact of average age as well as TMT heterogeneity on firm performance. In brief, we found that the average age of the TMT was positively related to performance. We also found negative relationships between TMT education heterogeneity and experience heterogeneity with firm performance. We develop an explanation for these results based on Chinese culture and the transitional state of the Chinese economy.

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