The role of the upper echelon in the value chain management

Abstract

Purpose – The purpose of this study was to analyze the impact of top management teams on firms' value chain action intensity and value chain activity heterogeneity. Design/methodology/approach – The study was conducted from an emerging market perspective. The sample was based on the secondary data collected from three fast-growing industries in India: automobile, pharmaceutical and fast-moving consumer goods over the three-year period from 2009 to 2012. The Panel Poisson and Tobit regression have been used to conduct this study. Findings – Drawing upon the upper echelon theory, the author found that a top management team's educational level, functional heterogeneity and total organizational tenure influence value chain action intensity and value chain activity heterogeneity. Originality/value – The author introduces the concept of value chain action intensity and value chain action heterogeneity and investigates the role of the upper echelon in influencing intensity and heterogeneity.