The Research On The Relationship Between TMT Characteristics And Turnaround Strategy

Nowadays, Chinese enterprises are faced with increasing competition and pressurefor surviving in a rapidly changing organizational environment. When faced with suchdevelopment difficulties, many companies failed to take effective measures to change theunfavorable situation. The process of strategic transition and the key factors of influencingthe process have attracted more and more attention from scholars and practitioners. Ascritical business resource of enterprises, the values and cognitive models of executiveteams are important for enterprise turnaround strategies.By introducing the attention-based view, this thesis explores the influentialmechanism of TMT demographic characteristics on turnaround strategy. It develops theframework that TMT demographic characteristics may affect the attention configuration soas to influence firms’ turnaround strategy (including strategic and business levels). Thisstudy collects data from113successful turnaround enterprises listed on Shanghai StockMarket and analyzes the data by panel data analysis methods. The results show that theattention model is impacted by the TMT demographic characteristics, and the attentionaffects the choice of turnaround strategy. The findings reveal the influential process ofTMT characteristics on the choice of turnaround strategy, which is helpful for expandingand enriching upper echelons theory.This thesis finally comes up with some practical suggestions for Chinese firms. In theprocess of turnaround, companies should concern about the configuration of TMT so thatTMT would be able to identify key factors accurately, develop response measures activelyand adjust the enterprise development timely to ensure the business turnaroundsuccessfully.