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Tenure Performance

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Submitted By dawson2010
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The Top Manager-Adviser Relationship in Strategic Decision Making during Executive Life Cycle: Exploring the Impediments to Strategic Change

ABSTRACT
The purpose of this study is to examine how strategy persistence would be induced from top manager-adviser relationships in strategic decision making during executive life cycle. Prior studies have shown that a top manager’s tenure is characterized as inverted U-shaped relationship between a top manager’s tenure and organizational performance that a top manager is effective during initial time in office, but as a span of top manager’s tenure become long, organizational performance is decline. However, little has been known about the reason of the inverted U-shaped relationship. To investigate this question, we apply the concept of the decision maker-adviser model to the argument. Upper echelons theorists have found that the top executives are critical to shaping the characteristics of the firm. However, since this research stream has emphasized on the decision making of Chief Executive Officer (CEO) or Top Management Team (TMT), relational aspects of strategic decision making between top managers and adviser have not been sufficiently argued. In response to this theoretical gap, we will discuss the relational aspect of strategic decision making between top managers and advisers.

Keywords: Upper echelons theory, executive life cycle, decision maker-adviser model.

INTRODUCTION

Over the past 20 years, growing evidence has indicated that top managers affect organizational performance (Carpenter, Gletkanycz, & Sanders, 2004; Certo, Lester, Dalton, & Dalton, 2006). Upper echelons theory (Hambrick & Mason, 1984) suggests that senior executives serve as an interface that helps an alignment between organization and its environment, and thus their decisions and actions are likely to impact the organization

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