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Power and glory: concentrated power in top management teams

Author: Mitsuhashi, Hitoshi ; Greve, Henrich R.INSEAD Area: Entrepreneurship and Family EnterpriseIn: Organization Studies, vol. 28, no. 8, 2007 Language: EnglishDescription: p. 1197-1222.Type of document: INSEAD ArticleNote: Please ask us for this itemAbstract: Strategic change is one of the most critical decisions that organizations make. We focus on the role of groups at the upper echelon of hierarchies and propose that concentrated power either in the CEO or the top management team is prone to be exercised, leading to a high rate of strategic change. We derive hypotheses on how formal and informal power concentration in top management teams have an effect on changes in corporate diversification. The findings suggest that power concentration strongly affects decision making.
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INSEAD Article Europe Campus
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Strategic change is one of the most critical decisions that organizations make. We focus on the role of groups at the upper echelon of hierarchies and propose that concentrated power either in the CEO or the top management team is prone to be exercised, leading to a high rate of strategic change. We derive hypotheses on how formal and informal power concentration in top management teams have an effect on changes in corporate diversification. The findings suggest that power concentration strongly affects decision making.

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