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Bar-Ilan University
This study draws on social identity theory and examines perceived external prestige at
both the organization and team levels as well as collective team identification as
antecedents of top management team (TMT) behavioral integration. The results of data
collected from TMTs in 70 small-sized organizations indicate that compared with
perceived organizational external prestige, perceived TMT external prestige had a
greater effect on collective team identification, which, in turn, resulted in TMT
behavioral integration. The theoretical implications regarding the antecedents of TMT
behavioral integration in small-sized organizations are discussed.
Keywords: management team behavioral integration, collective team identification,
perceived external prestige
318
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management within an organization because organizational decision makers face trying interdependent strategic complexities and bear large
interreliant responsibilities for the organization
and its stakeholders. Constructs such as communication quality (OReilly et al., 1993), social interaction among TMT members (i.e., social integration; OReilly, Caldwell, & Barnett,
1989; Smith et al., 1994), cohesion (e.g., Ensley, Pearson, & Amason, 2002), debate and
decision comprehensiveness (Simons, Pelled, &
Smith, 1999), leadermember exchange
(Mooney & Sonnenfeld, 2001), interpersonal
conflict and agreement seeking (Knight, Pearce,
Smith, Olian, Sims, Smith, & Flood, 1999),
speed in decision-making processes (Eisenhardt, 1989), and political behavior within
TMTs (Eisenhardt & Bourgeois, 1988), which
have been investigated in previous studies, may
not capture the essence of TMT task- and social-related processes. According to Hambrick
(1994), constructs such as social integration
(OReilly et al., 1989), which refers to the psychological or affective linkage between the individual and the group, or cohesiveness, which
refers to the attraction among members, may
not represent aspects underlying effective teamwork among TMT members.
To address the need to develop a more inclusive construct that would capture the essence
and substance of TMT processes, Hambrick
(1994) developed the concept of behavioral integration, which is defined as the degree to
which the group engages in mutual and collaborative interaction (Hambrick, 1994, p. 188).
TMT behavioral integration is intended to reflect three key, interrelated, and reinforcing features of the TMT processes, namely, the teams
(a) quantity and quality (richness, timeliness,
accuracy) of information exchange, (b) level of
collaborative behavior, and (c) emphasis on
joint decision making (Hambrick, 1994).
Although some researchers have recently
explored Hambricks work, they have mainly
examined the implications of TMT behavioral
integration on the team and organizational functioning. For example, Li and Hambrick (2005)
found that behavioral (dis)integration (the inverse of behavioral integration) in joint venture
management groups is negatively related to
subsequent performance. Lubatkin, Simsek,
Ling, and Veiga (2006) documented the effect
of TMT behavioral integration on a firms
319
ambidextrous orientation and performance. Carmeli and Schaubroeck (2006) tested the implications of TMT behavioral integration on decision quality and organizational decline. Carmeli
(2008) documented the effect of TMT behavioral integration on various performance measures of service organizations.
However, two key issues have yet to receive
sufficient attention. First, only scant consideration has been given to the determinants of
TMT behavioral integration. A review of the
literature indicates that only Simsek et al.
(2005) have dealt empirically with the factors
that give rise to behavioral integration, and they
focused on salient CEO-level, team-level. and
firm-level determinants (size, age, and performance). Ling, Simsek, Lubatkin, and Veiga
(2008) examined more proximate intervening
mechanisms to explain the link between transformational leadership and corporate entrepreneurship, including the behavioral integration at
the interface of the CEO and the TMT. Carmeli
and Waldman (2010) focused on the role leaders normative expectations and supportive behaviors in facilitating a behavioral context characterized by information sharing, joint decision
making, and collaboration. Second, research on
TMTs has been conducted extensively on large
(often publically traded) firms. This has left us
with only limited knowledge about the applicability of TMT variables to small-firm settings
(Ensley et al., 2002; Weinzimmer, 1997), a research context that has been understudied despite growing acknowledgment of its crucial
role for economic growth and job creation in
both developing and developed economies
(Storey, 1994; Winborg & Landstromb, 2001).
Upper echelon researchers have shown that
small- to mid-size privately owned firms perhaps provide the most suitable setting for research on TMTs because empirical testing of
the determinants of behavioral integration are
likely to be more robust in this setting than in
larger public firms where more complex organizational systems and governance mechanisms
may influence behavioral integration (Simsek et
al., 2005).
Drawing on social identity theory, the present
study attempted to address the above issues by
examining how perceived external prestige at
both the organization and team levels and collective team identification give rise to TMT
behavioral integration among small, privately
320
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from ones personal identity (encompassing salient unique personal characteristics) but also
from ones social identity (encompassing central, distinctive, and enduring group characteristics; Abrams, 1992; Ashforth & Mael, 1989;
Hogg & Abrams, 1988; Kramer, 1993; Tajfel,
1982; Turner, 1982). Social identity theory
(Hogg & Abrams, 1988; Tajfel & Turner, 1979)
and self-categorization theory (Turner, 1982;
Turner, Hogg, Oakes, Reicher, & Wetherell,
1987) suggest that individuals form a social
identity, conceptualized as that aspect of a persons self-concept based on their group membership (Turner, 1999).
Identification refers to a relatively enduring
state that reflects an individuals readiness to
define him or herself as a member of a particular
social group (Haslam, 2001, p. 383). By extension, social identification refers to the perception of oneness with or belongingness to
some human aggregation (Ashforth & Mael,
1989, p. 21). When a person sees the identity of
a particular social group or organization as salient, distinctive, central, and enduring, and he
or she incorporates it into his or her selfconcept, he or she is likely to develop a high
level of identification (Ashforth & Mael, 1989;
Dutton, Dukerich, & Harquail, 1994; Pratt,
1998).
Scholars tend to view social identification as
an individual-level construct. For example, Dutton et al. (1994) define organizational identification as the cognitive connection between the
definition of an organization and the definition a
person applies to him or herself (p. 242). As
such, identification is characterized by individ-
Perceived
Organization
External Prestige
TMT Identification
TMT Behavioral
Integration
Perceived TMT
External Prestige
Figure 1. The hypothesized research model of how perceived external prestige of both the
organization and the top management team (TMT) and collective team identification can lead
to a high level of behavioral integration in the organizations TMT.
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ual-level self-perceptions describing the perceived overlap between a persons identity and
a groups identity (Elsbach, 1999, p. 165), a
process occurring when one integrates beliefs
about ones organization into ones identity
(Pratt, 1998, p. 172). However, in this study, we
suggest that identification can also be viewed
and treated as a group-level phenomenon. That
is, we examine collective team identification,
which refers to members shared sense of identification with a work group (i.e., a sense of
collective team identification; Van der Vegt &
Bunderson, 2005). Collective team identification is referred to as the significance that members of a given group attach to their membership
in that group (Van der Vegt & Bunderson,
2005, p. 533). Consistent with the Van der Vegt
and Bunderson (2005) approach, in this study
collective team identification refers to a shared
sense of identification held by TMT members.
Why should collective team identification
facilitate mutual and collective interactions between TMT members (i.e., behavioral integration)? Social identity is the cognitive mechanism that makes group behavior possible
(Turner, 1999) because when people in a work
team develop strong identification, they redefine
the self as we rather than I and share common ground. Furthermore, information exchange, collaborative behavior, and joint decision making are likely to increase when team
members are more willing to engage in such
activities. What determines this willingness of
team members is to a large extent the strength of
their identification with the team because identification is the basis for motivation to engage in
a given task (Foote, 1951). When team members develop strong identification toward the
group to which they belong and become closely
identified with what the group represents, they
are likely to make individual efforts on behalf of
the whole. These efforts include information
sharing, collaborative behaviors, and joint decision-making activities. Members are likely to
value and work for a collective purpose rather
than their individual interests when a strong
collective identification emerges.
Research has demonstrated that ones attachment to a social group is related to cooperative
behaviors (Dukerich, Golden, & Shortell, 2002)
and citizenship behaviors (e.g., Carmeli, 2005).
Consistent with this line of research, we reason
that when a strong sense of collective team
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322
Method
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323
Measures
Perceived TMT external prestige. This
measure refers to how the TMT members think
outsiders (i.e., focal competitors) view and assess their team. Following Smidts et al. (2001),
we constructed three items to reflect perceived
external prestige at the team level. Responses
were assessed on a 5-point scale (ranging from
1 strongly disagree to 5 strongly agree).
The items were Our competitors accredit our
TMT with a favorable reputation, Our competitors view our TMT as a prestigious group,
and Our competitors think highly of our
TMT. The Cronbachs alpha for this measure
was .77.
Perceived organization external prestige.
This measure refers to how the TMT members
think outsiders (i.e., focal competitors) view
and assess their organization. We drew on the
Smidts et al. (2001) scale and constructed three
items measuring perceived organization external prestige. Responses were assessed on a
5-point scale (ranging from 1 strongly disagree to 5 strongly agree). The items were
Competitors accredit our organization with a
favorable reputation, Competitors view our
organization as a prestigious system, and
Competitors think highly of our organization.
The Cronbachs alpha for this measure was .78.
Collective team identification. This measure was constructed by adapting the five-item
scale developed by Smidts et al. (2001). The
participants were asked to assess on a 5-point
scale (ranging from 1 strongly disagree to
5 strongly agree) the extent to which members identify with the team at both the cognitive
and affective levels. Items were Members feel
strong ties with this TMT, Members experience a strong sense of belonging to this TMT,
Members feel proud to work for this TMT,
Members are sufficiently acknowledged in this
TMT, and We are glad to be a member of this
TMT. The Cronbachs alpha for this measure
was .81.
TMT behavioral integration. To measure
TMT behavioral integration, we used the nineitem scale developed and validated by Simsek,
Lubatkin, Veiga, and Dino (2002) and Simsek
et al. (2005), who followed previous attempts to
operationalize this construct (Mooney & Sonnenfeld, 2001; Hambrick, 1998) or related concepts such as social integration (Smith et.,
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324
Table 1
Means, Standard Deviations, and Correlations
Variable
1.
2.
3.
4.
5.
6.
p .10. p .01.
SD
3.84
4.51
4.35
4.40
5.74
1.25
0.37
0.43
0.51
0.62
.21
.01
.11
.01
.19
.04
.12
.02
.11
.43
.46
.20
.69
.37
.50
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steps as the essential steps in establishing mediation (p. 260). The first step is not required,
but a path from the initial variable to the outcome is implied if [the two middle steps] are
met (Kenny et al., p. 260). Furthermore, the
last step is necessary only to show a complete
mediation effect. Accordingly, we tested successive segments of our model by evaluating
whether these steps were met.
To test full mediation, we performed various
regression equation analyses, which are shown
in Table 2 and illustrated in Figure 2. Although
only Hypotheses 3a and 3b concerned mediation, each of the hypotheses was evaluated using the procedures for testing mediation outlined by Baron and Kenny (1986) and Kenny et
al. (1998). Model 2 in Table 2 presents the
results of the second regression, in which collective team identification was regressed on perceived organization external prestige and per-
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Table 2
Hierarchical Regression Results for the Mediating Effect of Collective Team Identification in the
Relationship Between Both Perceived Organization External Prestige and Perceived TMT External
Prestige and TMT Behavioral Integration
Model (t)
Variable
1
TMT behavioral
integration
2
Collective team
identification
3
TMT behavioral
integration
4
TMT behavioral
integration
3.26
4.39
3.20
3.37
.19 (1.83)
.01 (.07)
.03
.01
1.24
.62
.50 (4.76)
.25
22.66
.28
.25
.53
.19 (1.76)
.01 (0.04)
.03
.01
1.24
.62
.50 (3.27)
.25
22.66
.28
.25
.53
Constanta
Sector (1 manufacturing,
0 service)
TMT size
R2
Adjusted R2
F for R2
SE of the estimate
Collective team identification
R2
F for R2
R2
Adjusted R2
SE of the estimate
Perceived organization external
prestige
Perceived TMT external prestige
R2
F for R2
R2
Adjusted R2
SE of the estimate
Note. TMT top management team.
a
Unstandardized coefficients.
p .05. p .01.
.16 (1.35)
.03 (0.29)
.03
.01
1.24
.62
.06 (0.45)
.33 (2.62)
.13
4.98
.16
.11
.58
.07 (0.79)
.06 (0.66)
.00
.00
.01
.52
.21 (2.15)
.62 (6.43)
.52
35.49
.52
.49
.36
.05 (0.38)
.02 (0.16)
.00
.07
.28
.23
.54
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Perceived
Organizations
External Prestige
.06 (-.05)
.21**
TMT Identification
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Perceived TMTs
External Prestige
.50** (.50** )
TMT Behavioral
Integration
.62***
.33* (.02)
Beta coefficients in parentheses are based on regression equations including the connectedness mediator.
*
Figure 2. The relationship between perceived top management team (TMT) external
prestige, TMT identification, and TMT behavioral integration.
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more carefully examine causal relationships, future research might benefit from research collaboration pursuing a longitudinal or multisource study across cultures. This type of effort
would allow researchers to generalize findings
and confirm or challenge current theories on
upper echelons in general and TMTs in particular.
Although our study contributes to the literature by examining two levels of perceived external prestige, future research efforts should
also be directed toward examining other multiple levels and, most important, why and how
identification with different foci may influence
members willingness to engage in behavioral
integration activities. Finally, future work could
explore the potential moderators between prestige and identification as well as between identification and behavioral integration. In other
words, research should attempt to define the
conditions in which external prestige does or
does not give rise to identification, and under
which conditions identification does or does not
augment behavioral integration in TMTs.
Conclusion
TMTs play a key strategic role in directing
and managing a firm. Although researchers
have noted the need to go beyond studying
TMT demographic characteristics and enrich
our understanding of TMT processes (Hambrick, 1994; Lawrence, 1997), little is known
about the ways TMT behavioral integration
evolves, especially in the setting of small firms,
which have a critical impact on both developing
and developed economies. Our study addressed
this fundamental question by examining how
social identity theory informs us about why
perceived external prestige at both the organization and TMT levels and collective team identification facilitate behavioral integration in
TMTs. Although both are important, we found
that perceived TMT external prestige has a
greater effect than perceived organization external prestige on collective team identification,
and that collective team identification mediates
the relationship between both types of external
prestige and TMT behavioral integration. Our
study thus sheds new light on the determinants
of TMT behavioral integration, reaffirms and
extends social identity theory to the context of
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