Study On China Listed SMEs: How Relations Of Top Management Teams Influence Its Growth

It is widely acknowledged that demography of Top Management Team (TMT) will have impact on enterprise growth. But the way that TMT's demography influences enterprise growth is unclear for The Small and Medium Enterprises (SMEs), since there have not been more studies of this topic thus far. Through the study of relationship between TMT's demography and enterprise growth, we try to understand the influence under the multiple social and political circumstance in order to come up with suggestions for firms in the future.SME "Second-generation" UE model about TMT's demographic characteristics influencing on enterprise growth was set up based on theoretical analysis. In this study, we try to explore how characteristics of TMTs will influence growth of Chinese businesses, through examining the relationship between TMTs' characteristics and the growth of 132 SMEs listed in Chinese stock exchange market, and discuss the implications of the empirical results from cultural, historical and the institutional perspectives.Demography of TMT contains eight factors: ages, formal education, tenure, career backgrounds, specialty skills, labor experience, age heterogeneity and education heterogeneity. During the empirical study, we first come up with hypotheses and selected samples, independent variables and dependent variables. Through the descriptive statistics and correlation analysis, we get the empirical results.Demography of TMT is not much related to the firms' growth. The TMT's average education and specialty skills are positively related to the firm's growth; TMT's non-technical occupation background has negative impact on growth; age, labor experience, age heterogeneity and education heterogeneity don't have a significant impact on growth. In conclusion, based on the analysis of the empirical study, it is urgent that we should pay more attention to the TMT's demography and build up an effective and efficient mechanism of TMT.