The Effect Of TMT Heterogeneity On Corporate Performance Under Industrial Dynamism Moderation

Domestic and foreign scholars have started the study of TMT(Top Management Team)heterogeneity since1980s. Over the years, the study of this topic has never been stopped, todaythe study extension continues development. The reasons for such results, on the one hand, with thebusiness environment becoming more and more complex, the company operator to knowledge ofthe field is becoming more and more widely. Boundaries between various knowledge areasbecome more blurred, cross each other and merge different kinds of knowledge, the knowledgeand skills form a single senior manager can not ensure the correctness of the decision making in acomplex environment. Therefore, it is necessary to build efficient TMT to run the company,especially for large companies. On the other hand, it is with the enlargement of the organizationscale, function and gradually developed, is closely related to organizational development andorganizational performance improvement. What kind of the composition of the TMT can improvethe company’s operating performance? This problem as a hot topic has been plagued thetheoretical researchers and practical workers a long time, and it is an eternal research topic.This paper mainly studied the TMT heterogeneity influence on corporate performance.Foreign scholar studies have shown that the heterogeneity of top management team are associatedwith organizational performance. So it has certain research significance in the field ofmanagement. China’s transition economy is different from western market economy. In themanagement environment, Listed companies performance of SME boards are affected by the TMTneed our in-depth study.The research that TMT heterogeneity of SME board listed companies hasan effect on corporate performance is of certain representativeness. First of all, relative to mainboard listed companies, SME board listed companies have the flexibility of policy formulation andexecution, so the conclusions studied are of more practical significance. Second, the industriesinvolved in the SME board listed companies have wider distribution, which can reflect thedevelopment situation of small and medium-sized enterprises in China to some extent. At the sametime, it is advantageous to analysis that the relationship between TMT heterogeneity and firmperformance presents different inclusions for the dynamic of different industry background.Finally, in the existing research, scholars have adopted different methods to define theperformance variables, who mostly used the single performance indicators. This article will usethe principal component analysis method to construct comprehensive performance indexevaluation system. In addition, based on the basis of literature review, this article will also adoptthe international general study method to put forward the conceptual model and researchhypothesis, give full consideration to the effect of moderator variables, use multiple regression andinteraction analysis to study the influence of TMT heterogeneity on corporate performance, as well as explain and analyze the result of the empirical research combined with the feature ofconcrete industry background.This paper selects463listed companies data from2011to2012in SME board. It studies theeffects of SME board listed companies TMT heterogeneity on firm performance, and analyzes theadjustment effects of industry characteristics on the relationship between the both. This studyshows that, the first, there are some correlation between the TMT heterogeneity and firmperformance. Second, the TMT heterogeneity and the TMT education background has a positiveeffect on firm performance. Third, the interaction of industry dynamics and the TMT educationbackground heterogeneity in executive team education background heterogeneity effect oncorporate performance plays a negative regulatory role. Finally, this paper conducts relateddiscussions and analyses on the study result, and puts forward relevant management strategies.