Managing Industrial and Environmental Crises: The Role of Heterogeneous Top Management Teams

Business and Society 36 (4):334-361 (1997)
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This study examines firms that have experienced an industrial and/or environ-mental crisis and proposes that top management team (TMT) characteristics will affect a firm's ability to minimize the severity of these crisis events. Specifically, heterogeneity in the TMT will exhibit a curvilinear (U-shaped) relationship with the severity of firm crises. Our results suggest that a moderate level of age and tenure heterogeneity are positively related to a firm's ability to successfully minimize the severity of crises. Variance in educational backgrounds was unrelated to crisis severity. Functional background heterogeneity exhibited a curvilinear relationship with crisis severity but was not U-shaped as hypothesized.



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