The Interface between CEO-TMT and its Effects on the Firm Performance

Abstract

This study employs the upper-echelons perspectives by examining the mediating role of psychological empowerment, and redresses the deficits by devoting attention to the interface between CEO-TMT exchange and TMT personality compositions-psychological empowerment and as well as affect firm performance. By collecting sample from firms in Jordan, using the structural equation model (SEM). The research results show that TMT personality traits have significant effects on psychological empowerment. CEO-TMT exchange moderates some of the relationships between TMT personality traits and psychological empowerment. An integrated consideration of TMT personality compositions and firm performance through the mechanism of psychological empowerment may provide a more complete picture of how the entire top executive research. CEO–TMT exchange can advance TMT psychological empowerment. CEOs leader as a view also are critical in most of top team effectiveness and firm performance. Limitations and implications are discussed.