Strategic Change: The Influence of Managerial Characteristics and Organizational Growth

Strategic change in the organization is best seen as a Multidimensional observable fact comprises of environmental configuration and internal knowledge. After matching this conceptualization of change with a model of organizational knowledge, we achieve a better perceptive about the types of change strategies that firms will pursue, the processes they should use to execute strategies and the expected performance outcomes from these strategies. This study examined how top management and chief executive team characteristics cooperate with firm performance to influence strategic change. Results indicate that poor performance, long chief executive and top management team tenures, and high diversity in top management team tenure are associated with greater levels of strategic change. In addition, poor performance moderated the relationship between managerial characteristics and strategic change, increasing the likelihood of the latter.