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Top Management Teams’ Characteristics and Strategic Decision-Making: A Mediation of Risk Perceptions and Mental Models

Author

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  • Tungju Wu

    (College of Business Administration, Huaqiao University, Quanzhou 362021, China
    East Business Management Research Center, Huaqiao University, Quanzhou 362021, China)

  • Yenchun Jim Wu

    (National Taiwan Normal University, Taipei 10645, Taiwan
    National Taipei University of Education, Taipei 10671, Taiwan)

  • Hsientang Tsai

    (Department of Business Management, National Sun Yat-sen University, Kaohsiung 80424, Taiwan)

  • Yibin Li

    (College of Business Administration, Huaqiao University, Quanzhou 362021, China
    East Business Management Research Center, Huaqiao University, Quanzhou 362021, China)

Abstract

Strategic decision-making is a key factor of sustainability and development in enterprises. Moreover, the top management team (TMT) of an enterprise constitutes the base for decision-making. This study employed structural equation modeling to analyze questionnaires regarding TMTs’ characteristics and strategic decision-making, and tested the mediating effects of risk perceptions and mental models and the moderating effects of psychological ownership. We investigated 289 valid questionnaires on TMTs completed by representatives from enterprises in China and found risk perceptions and mental models that serve as a mediating factor and are affected by the TMTs’ characteristics and decision-making. We also found that psychological ownership exerts moderating effects between TMTs’ characteristics and decision-making. This paper concludes with a discussion of theoretical and managerial implications for enterprise owners.

Suggested Citation

  • Tungju Wu & Yenchun Jim Wu & Hsientang Tsai & Yibin Li, 2017. "Top Management Teams’ Characteristics and Strategic Decision-Making: A Mediation of Risk Perceptions and Mental Models," Sustainability, MDPI, vol. 9(12), pages 1-15, December.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:12:p:2265-:d:122052
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