Top Management Teams Demographics, Group Process and Strategic Consensus: Empirical Review

Abstract

Globalization has brought diversity in organization. This has both positive and negative repercussion on productivity of an organization. High global competition, technological advancement, product innovation, and volatile market conditions has created high competitive pressure on organization hence there is a dilemma of maintaining high performance.  The companies need to make strategies, where the top management demographic and group process are needed receipt for strategic consensus. This allows the organization to make sound, quality and timely decision that fosters growth and high performance in both short and long run strategic plans. The main aim of this research is to investigate the effect of top management demography, group process on the strategic consensus in an organization.  Theories used included upper echelon which emphasis on importance of individual top manager's character and linked it with organization performance. Resource-Based View (RBV) theory laid emphasis on capabilities and resource allocation, Top Management Team are the major decision makers on allocation of these resource and proper distribution of the organization capabilities. The paper relied on industrial organization economics theory that anchors the strategy construct between top management and strategic consensus.   Group process was supported by the group process theory that provide knowledge on the nature of the groups and how the interrelate with individuals and other groups.  These theories was found to have independently framework with not interrelationship with each other creating disconnect within the knowledge and hence knowledge gap.  Hence each theory is not sufficient to provide solution to top management diversity crisis. The empirical review indicates trend in diversity of organizations and performance on the contrary less has been done on strategic consensus. The gap generated in conceptual review allow further studies on top management demography and strategic consensus. The research hypothesis that since top management demography affect performance in larger number of scholars.  It will significantly affect strategic consensus. On group process the gap arises in the conceptual as well as empirical literature based on the concentration on diversity leaving the group process and team work process on strategic consensus. The research postulated that that age of team members, education background, functional experience, TMT average tenure and ethnic and gender diversity are factors that are linked with strategic consensus.