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Metacognition, entrepreneurial orientation, and firm performance : An upper echelons view
Najmaei, Arash Sadeghinejad, Zahra
Najmaei, Arash
Sadeghinejad, Zahra
Abstract
Upper echelons theory suggests that cognitive diversity in top management teams (TMTs) affects firms’ operation and performance. Prior research in this stream has focused primarily on lower-order cognitive factors, such as beliefs, perceptions, and preferences, rather than higher-order ones, known as metacognitive abilities. This study is an early, perhaps the first, attempt to begin this line of enquiry. Adopting a multidimensional view of entrepreneurial orientation, we propose that diversity in the metacognitive ability of top teams has different impacts on each dimension of the team’s entrepreneurial behavior and through this firm performance. Our empirical analysis, based on data from 105 TMTs of Australian small- and medium-sized enterprises (SMEs), partially supports our theorization. We found that while metacognitive diversity is positively associated with the innovative endeavors of TMTs, it has no significant effects on their risk-taking and proactive behaviors. We found additional evidence that each aspect of the TMT’s entrepreneurial orientation has a different implication for firm performance. Overall, our research offers novel and more nuanced insights into how and when diversity in the metacognitive ability of TMTs matters for the performance of the firm.
Keywords
top management team, diversity, metacognition, entrepreneurial orientation, firm performance
Date
2019
Type
Book chapter
Journal
Book
Contributions to management science
Volume
Issue
Page Range
79-114
Article Number
ACU Department
Peter Faber Business School
Faculty of Law and Business
Faculty of Law and Business
Collections
Relation URI
Source URL
Event URL
Open Access Status
License
All rights reserved
File Access
Controlled