The Research Of The Relationship Between Top Management Team Faultlines,Technological Innovation And Firm Performance

Under the current economic situation,the world economy is still in a period of recovery,and China's economy is at a critical stage of transformation and upgrading.Innovation has become an important driving force to guide the economic and social development of the country,and it occupies the primary position of our economic development concept.It is an important driving force for China's industrial upgrading and economic development.The innovation drive is already the long-term direction and focus of the development of Chinese enterprises.At present,with the rise of the knowledge economy driven by the Internet,the speed of technology renewal is quicker.Besides the difficulty of technology innovation is increased,and the competition is becoming increasingly fierce.In order to cope with the unpredictable business environment,enterprises need to be competitive through technological innovation.The senior management team is in the position of the strategic command center and plays a key role in the decision-making and implementation.How to optimize the TMT structure to improve performance is a major problem that many scholars and companies are concerned about.As a high concentration of corporate power and interests,the senior management team often pays more attention to the effectiveness of its work and even personal interests.As a result,sub-teams are often split during the actual development of the strategy.In addition,in the context of China's unique "relationship"culture,the degree of closeness and distance in interpersonal communication is mainly concerned with the "circle",that is,people will form a small circle in their interactions.Besides,scholars have found that compared to the whole team,the internal cohesion of the sub-teams is stronger and the stability is higher.Therefore,the members often tend to maintain the interests of the sub-teams and form a situation in which the team splits.Therefore,in the context of China,it is necessary to consider the impact of team division on the senior management team.This research starts from the perspective of the fracture of the heterogeneous TMT team and explores the internal mechanisms of different types of TMT faultlines on corporate performance,and it examines the mediating role of technological innovation in this area.At the same time,considering that the senior management team's strategy is often influenced by the ownership structure of the company,this study selects the ownership concentration as a regulatory variable to examine its impact on the relationship between the TMT faultlines and technological innovation.Empirical research shows:(1)Bio-demographic faultlines significantly negatively affect technological innovation,but its impact on corporate performance is not significant;(2)Task-related faultlines have a significant positive impact on technological innovation and corporate performance;(3)Technological innovation partially mediated the relationship between corporate performance and task-related faultlines;(4)Ownership concentration negatively regulates the relationship between the bio-demographic faultlines and the task-related faultlines and technological innovation.The main innovation points of this study are as follows:The theory of faultlines is introduced into TMT research,and the influence of different TMT faultlines on technological innovation and enterprise performance is studied.The empirical results show that the bio-demographic faultlines significantly negatively affect technological innovation,while task-related faultlines have a significant positive impact on technological innovation and enterprise performance.And technological innovation partially mediated the relationship between corporate performance and task-related faultlines.At the same time,the research empirically proves the moderating role of power allocation structure(share concentration)to senior executives' strategic formulation,and expands the research of the inner path mechanism of TMT faultlines.The limitation lies in the fact that the number and scope of sample is limited,and the research of the internal role path needs to be further deepened.