The Impact of Metacognitive Knowledge and Experience on Top Management Team Diversity and Small to Medium Enterprises Performance
The aim of this study is to determine the impact of metacognition on top management team members and firm performance based on full team integration. A survey of 1500 small to medium enterprises (SMEs) was initiated and 140 firms were obtained in this study (with response rate of 9%). The result showed that different metacognitive abilities of managers [knowledge and experience] could enhance team decision-making and problem solving, resulting in greater firm performance. This is a significant finding for SMEs because these organisations have small teams with owner leadership and entrepreneurial orientation.
[1] Hambrick, D. C. (2007), ‘Upper Echelons Theory: An Update,’ Academy of Management Review, 32, 2, 334–343.
[2] West, G.P., III (2007), ‘Collective Cognition: When Entrepreneurial Teams, not Individuals, Make Decisions,’ Entrepreneurship Theory and Practice, 31, 1, 77-102.
[3] Colbert, A. E., Barrick, M. R., & Bradley, B. H. (2014). Personality and Leadership Composition in Top Management Teams: Implications for Organizational Effectiveness. Personnel Psychology, 67, 2, 351-387.
[4] Baron, R.A., and Henry, R.A. (2010), ‘How Entrepreneurs Acquire the Capacity to Excel: Insights from Research on Expert Performance,’ Strategic Entrepreneurship Journal, 4, 1, 49-65.
[5] Kozhevnikov, M. (2007). ‘Cognitive styles in the context of modern psychology: Toward an integrated framework of cognitive style’. Psychological Bulletin, 133,3, 464-481.
[6] Armstrong, S. J., & Hird, A. (2009). ‘Cognitive style and entrepreneurial drive of new and mature business owner-managers’. Journal of Business and Psychology, 24,4, 419-430.
[7] Wei, L.Q., and Wu, L. (2013), ‘What a Diverse Top Management Team Means: Testing an Integrated Model,’ Journal of Management Studies, 50, 3, 389-412.
[8] Perfect, T. J., & Schwartz, B. L. (2004). Applied Metacognition. Cambridge, UK: Cambridge University Press.
[9] Blume, B. D., & Covin, J. G. (2011). ‘Attributions to intuition in the venture founding process: Do entrepreneurs actually use intuition or just say that they do?’. Journal of Business Venturing, 26, 1, 137-151.
[10] Flavell, J.H. (1979), ‘Metacognition and Cognitive Monitoring: A New Area of Cognitive—Developmental Inquiry,’ American Psychologist, 34, 10, 906-911
[11] Schmidt, A.M. & Ford, J.K. (2003). Learning within a learner control training environment: The interactive effects of goal orientation and metacognitive instruction on learning outcomes. Personnel Psychology, 56, 2, 405–429.
[12] Flavell, J. H. (1987). ‘Speculations about the nature and development of metacognition’. In F. E. Weinert & R.H. Kluwe (Eds.), Metacognition, Motivation and Understanding: 21-29. Hillsdale, NJ: Erlbaum.
[13] Haynie, J.M., Shepherd, D.A., and Patzelt, H. (2012), ‘Cognitive Adaptability and an Entrepreneurial Task: The Role of Metacognitive Ability and Feedback,’ Entrepreneurship Theory and Practice, 36, 2, 237-265.
[14] Mathieu, J., Maynard, M. T., Rapp, T., and Gilson, L. (2008), ‘Team Effectiveness 1997-2007: A Review of Recent Advancements and a Glimpse into the Future,’ Journal of Management, 34, 3, 410-476.
[15] Magni, M., Proserpio, L., Hoegl, M., and Provera, B.(2009).The role of team behavioural integration and cohesion in shaping individual improvisation. Research Policy, 38(6), 1044–1053.
[16] Simsek, Z., Veiga, J.F., Lubatkin, M.H., and Dino, R.N. (2005), ‘Modelling the Multilevel Determinants of Top Management Team Behavioural Integration,’ Academy of Management Journal, 48, 1, 69-84.
[17] Raes, A. M., Bruch, H., & De Jong, S. B. (2013). How top management team behavioural integration can impact employee work outcomes: Theory development and first empirical tests’. Human Relations, 66, 2, 167-192.
[18] Escribá-Esteve, A., Sánchez-Peinado, L., & Sánchez-Peinado, E. (2009). ‘The influence of top management teams in the strategic orientation and performance of small and medium-sized enterprises’. British Journal of Management, 20, 4, 581–597.
[19] Ling, Y., Simsek, Z., Lubatkin, M.H., Lyon, E., & Veiga, J.F. (2008). ‘Transformational leadership’s role in promoting corporate entrepreneurship: Examining the CEO-TMT interface’. Academy of Management Journal, 51,3, 557–576.
[20] Zahra, S.A., and Wiklund, J. (2010), ‘The Effect of Top Management Team Characteristics on Product Innovation among New Ventures: The Moderating Role of Behavioural Integration’, in Academy of Management Proceedings, pp. 1-6.
[21] Li, H., and Atuahene-Gima, K. (2001), ‘Product Innovation Strategy and the Performance of New Technology Ventures in China,’ Academy of Management Journal, 44, 6, 1123-1134.
[22] Simsek, Z., & Heavey, C. (2011). The mediating role of knowledge-based capital for corporate entrepreneurship effects on performance: A study of small to medium-sized firms. Strategic Entrepreneurship Journal, 5(1), 81–100
[23] Ling, Y. & Kellermanns, F.W. (2010). The effects of family firm specific sources of TMT diversity: The moderating role of information exchange frequency. Journal of Management Studies, 47(2), 322-344.
[24] Olson, B.J., Parayitam, S., and Bao, Y. (2007), ‘Strategic Decision Making: The Effects of Cognitive Diversity, Conflict, and Trust on Decision Outcomes,’ Journal of Management, 33,2, 196-222.
[25] Alexiev, A.S., Jansen, J.J.P., Van den Bosch, F.A.J., and Volberda, H.W. (2010), ‘Top Management Team Advice Seeking and Exploratory Innovation: The Moderating Role of TMT Heterogeneity,’ Journal of Management Studies, 47, 7, 1343-1364.
[26] Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modelling in practice: A review and recommended two-step approach. Psychological bulletin, 103(3), 411-423.
[27] Williams, K.Y., & O’Reilly, C.A. (1998). Demography and diversity in organizations: A review of 40 years of research. In B.M. Staw & L.L. Cummings (Eds.), Research in Organizational Behaviour: 77–140.Greenwich, CT: JAI Press.
[28] Porath, C. L., & Bateman, T. S. (2006). Self-regulation: From goal orientation to job performance. Journal of Applied Psychology, 91(1), 185-192.
[29] Mitchell, J.R., Shepherd, D.A., & Sharfman, M.P (2011). Erratic strategic decisions: When and why managers are inconsistent in strategic decision making. Strategic Management Journal, 32(7), 683–704.
[30] Brettel, M., & Rottenberger, J. D. (2013). Examining the Link between Entrepreneurial Orientation and Learning Processes in Small and Medium-Sized Enterprises. Journal of Small Business Management, 51 (4), 471-490
[31] Harmancioglu, N., Grinstein, A., & Goldman, A. (2010). Innovation and performance outcomes of market information collection efforts: The role of top management team involvement. International Journal of Research in Marketing, 27(1), 33-43.
[32] Nielsen, B. B., & Nielsen, S. (2013). Top management team nationality diversity and firm performance: A multilevel study. Strategic Management Journal, 34(3), 373-382.
[33] Jackson, S. E., Joshi, A., & Erhardt, N. L. (2003). Recent research on team and organizational diversity: SWOT analysis and implications. Journal of Management, 29(6), 801-830.
[34] Lubatkin, M.H., Simsek, Z., Ling, Y., and Veiga J.F. (2006), ‘Ambidexterity and Performance in Small- To Medium-Sized Firms: The Pivotal Role of Top Management Team Behavioural Integration,’ Journal of Management, 32, 5, 646-672.
[1] Hambrick, D. C. (2007), ‘Upper Echelons Theory: An Update,’ Academy of Management Review, 32, 2, 334–343.
[2] West, G.P., III (2007), ‘Collective Cognition: When Entrepreneurial Teams, not Individuals, Make Decisions,’ Entrepreneurship Theory and Practice, 31, 1, 77-102.
[3] Colbert, A. E., Barrick, M. R., & Bradley, B. H. (2014). Personality and Leadership Composition in Top Management Teams: Implications for Organizational Effectiveness. Personnel Psychology, 67, 2, 351-387.
[4] Baron, R.A., and Henry, R.A. (2010), ‘How Entrepreneurs Acquire the Capacity to Excel: Insights from Research on Expert Performance,’ Strategic Entrepreneurship Journal, 4, 1, 49-65.
[5] Kozhevnikov, M. (2007). ‘Cognitive styles in the context of modern psychology: Toward an integrated framework of cognitive style’. Psychological Bulletin, 133,3, 464-481.
[6] Armstrong, S. J., & Hird, A. (2009). ‘Cognitive style and entrepreneurial drive of new and mature business owner-managers’. Journal of Business and Psychology, 24,4, 419-430.
[7] Wei, L.Q., and Wu, L. (2013), ‘What a Diverse Top Management Team Means: Testing an Integrated Model,’ Journal of Management Studies, 50, 3, 389-412.
[8] Perfect, T. J., & Schwartz, B. L. (2004). Applied Metacognition. Cambridge, UK: Cambridge University Press.
[9] Blume, B. D., & Covin, J. G. (2011). ‘Attributions to intuition in the venture founding process: Do entrepreneurs actually use intuition or just say that they do?’. Journal of Business Venturing, 26, 1, 137-151.
[10] Flavell, J.H. (1979), ‘Metacognition and Cognitive Monitoring: A New Area of Cognitive—Developmental Inquiry,’ American Psychologist, 34, 10, 906-911
[11] Schmidt, A.M. & Ford, J.K. (2003). Learning within a learner control training environment: The interactive effects of goal orientation and metacognitive instruction on learning outcomes. Personnel Psychology, 56, 2, 405–429.
[12] Flavell, J. H. (1987). ‘Speculations about the nature and development of metacognition’. In F. E. Weinert & R.H. Kluwe (Eds.), Metacognition, Motivation and Understanding: 21-29. Hillsdale, NJ: Erlbaum.
[13] Haynie, J.M., Shepherd, D.A., and Patzelt, H. (2012), ‘Cognitive Adaptability and an Entrepreneurial Task: The Role of Metacognitive Ability and Feedback,’ Entrepreneurship Theory and Practice, 36, 2, 237-265.
[14] Mathieu, J., Maynard, M. T., Rapp, T., and Gilson, L. (2008), ‘Team Effectiveness 1997-2007: A Review of Recent Advancements and a Glimpse into the Future,’ Journal of Management, 34, 3, 410-476.
[15] Magni, M., Proserpio, L., Hoegl, M., and Provera, B.(2009).The role of team behavioural integration and cohesion in shaping individual improvisation. Research Policy, 38(6), 1044–1053.
[16] Simsek, Z., Veiga, J.F., Lubatkin, M.H., and Dino, R.N. (2005), ‘Modelling the Multilevel Determinants of Top Management Team Behavioural Integration,’ Academy of Management Journal, 48, 1, 69-84.
[17] Raes, A. M., Bruch, H., & De Jong, S. B. (2013). How top management team behavioural integration can impact employee work outcomes: Theory development and first empirical tests’. Human Relations, 66, 2, 167-192.
[18] Escribá-Esteve, A., Sánchez-Peinado, L., & Sánchez-Peinado, E. (2009). ‘The influence of top management teams in the strategic orientation and performance of small and medium-sized enterprises’. British Journal of Management, 20, 4, 581–597.
[19] Ling, Y., Simsek, Z., Lubatkin, M.H., Lyon, E., & Veiga, J.F. (2008). ‘Transformational leadership’s role in promoting corporate entrepreneurship: Examining the CEO-TMT interface’. Academy of Management Journal, 51,3, 557–576.
[20] Zahra, S.A., and Wiklund, J. (2010), ‘The Effect of Top Management Team Characteristics on Product Innovation among New Ventures: The Moderating Role of Behavioural Integration’, in Academy of Management Proceedings, pp. 1-6.
[21] Li, H., and Atuahene-Gima, K. (2001), ‘Product Innovation Strategy and the Performance of New Technology Ventures in China,’ Academy of Management Journal, 44, 6, 1123-1134.
[22] Simsek, Z., & Heavey, C. (2011). The mediating role of knowledge-based capital for corporate entrepreneurship effects on performance: A study of small to medium-sized firms. Strategic Entrepreneurship Journal, 5(1), 81–100
[23] Ling, Y. & Kellermanns, F.W. (2010). The effects of family firm specific sources of TMT diversity: The moderating role of information exchange frequency. Journal of Management Studies, 47(2), 322-344.
[24] Olson, B.J., Parayitam, S., and Bao, Y. (2007), ‘Strategic Decision Making: The Effects of Cognitive Diversity, Conflict, and Trust on Decision Outcomes,’ Journal of Management, 33,2, 196-222.
[25] Alexiev, A.S., Jansen, J.J.P., Van den Bosch, F.A.J., and Volberda, H.W. (2010), ‘Top Management Team Advice Seeking and Exploratory Innovation: The Moderating Role of TMT Heterogeneity,’ Journal of Management Studies, 47, 7, 1343-1364.
[26] Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modelling in practice: A review and recommended two-step approach. Psychological bulletin, 103(3), 411-423.
[27] Williams, K.Y., & O’Reilly, C.A. (1998). Demography and diversity in organizations: A review of 40 years of research. In B.M. Staw & L.L. Cummings (Eds.), Research in Organizational Behaviour: 77–140.Greenwich, CT: JAI Press.
[28] Porath, C. L., & Bateman, T. S. (2006). Self-regulation: From goal orientation to job performance. Journal of Applied Psychology, 91(1), 185-192.
[29] Mitchell, J.R., Shepherd, D.A., & Sharfman, M.P (2011). Erratic strategic decisions: When and why managers are inconsistent in strategic decision making. Strategic Management Journal, 32(7), 683–704.
[30] Brettel, M., & Rottenberger, J. D. (2013). Examining the Link between Entrepreneurial Orientation and Learning Processes in Small and Medium-Sized Enterprises. Journal of Small Business Management, 51 (4), 471-490
[31] Harmancioglu, N., Grinstein, A., & Goldman, A. (2010). Innovation and performance outcomes of market information collection efforts: The role of top management team involvement. International Journal of Research in Marketing, 27(1), 33-43.
[32] Nielsen, B. B., & Nielsen, S. (2013). Top management team nationality diversity and firm performance: A multilevel study. Strategic Management Journal, 34(3), 373-382.
[33] Jackson, S. E., Joshi, A., & Erhardt, N. L. (2003). Recent research on team and organizational diversity: SWOT analysis and implications. Journal of Management, 29(6), 801-830.
[34] Lubatkin, M.H., Simsek, Z., Ling, Y., and Veiga J.F. (2006), ‘Ambidexterity and Performance in Small- To Medium-Sized Firms: The Pivotal Role of Top Management Team Behavioural Integration,’ Journal of Management, 32, 5, 646-672.
@article{"International Journal of Business, Human and Social Sciences:73707", author = "Jo Rhodes and Peter Lok and Zahra Sadeghinejad", title = "The Impact of Metacognitive Knowledge and Experience on Top Management Team Diversity and Small to Medium Enterprises Performance", abstract = "The aim of this study is to determine the impact of metacognition on top management team members and firm performance based on full team integration. A survey of 1500 small to medium enterprises (SMEs) was initiated and 140 firms were obtained in this study (with response rate of 9%). The result showed that different metacognitive abilities of managers [knowledge and experience] could enhance team decision-making and problem solving, resulting in greater firm performance. This is a significant finding for SMEs because these organisations have small teams with owner leadership and entrepreneurial orientation.
", keywords = "Metacognition, behavioural integration, top management team, performance.", volume = "10", number = "8", pages = "2852-5", }
