TOP MANAGEMENT TEAM CHARACTERISTICS AND STRATEGIC CHANGE OUTCOMES OF BRANCH SUPERMARKETS IN NAIROBI COUNTY
Mary Agono Okello - Masters Student, Management University of Africa, Kenya
Dr. Michael O. Ngala - Lecturer/Management Consultant, Management University of Africa, Kenya
ABSTRACT
Organizations of today operate in a progressively unpredictable global environment. The market has significantly transformed due to globalization, fierce competition, technological advancement and a customer focused market. Top management team characteristics are linked with organizations performance. However, previous studies on the relationship between TMT characteristics and performance have produced inconsistent and inconclusive results. It is for this empirical gap that this study sought to explore the influence of Top Management Team Characteristics on strategic change outcomes: A case of branch supermarkets in Nairobi County. Specifically, this study sought to; establish the effect of top management team behavioral characteristics on strategic change outcomes; determine the effect of top management team demographic characteristics on strategic change outcomes; to establish the effect of top management team size on strategic change outcomes; to determine the influence of top management cognitive characteristics on strategic change outcomes. This study was informed by several theories. These theories included: Upper Echelon Theory, Contingency theory and Resource Based Theory. The study targeted all the 21 branch supermarkets in Nairobi county. The study targeted specifically, top managers in each supermarket that is, human resource managers, audit and control manager, finance manager, IT manager and purchasing and supply manager. The target respondents were therefore 105 managers. The study employed a census since the population of study was small. Primary data was collected using a questionnaire. Descriptive statistics (means and frequencies) and inferential statistics (regression and correlation analysis) were used to perform data analysis. The study found a positive and significant relationship between top management behavioral, demographic and cognitive characteristics on strategic change outcomes. It was also found that team size and strategic change outcomes are positively and significantly related. The study concluded that having a top management that encourages democratic decision making positively influences strategic change outcomes. The study also concluded that motivated top management team is a prerequisite for organizational strategic change outcomes. It was further concluded that top management aggressiveness towards meeting the organizational objectives has a positive influence on organizational effectiveness. It was recommended that top management team members should have the relevant professional qualifications within their departments so as to provide relevance when formulating and implementing strategies. Organizations should also come up with policies on minimum qualifications for top management team members. The study also recommends that policies should be laid out in regards to the tenure of the top management team.
