Formation of TMT strategic consensus: the effects of collective team identification and information elaboration

Abstract

Purpose How is strategic consensus formed in top management team (TMT)? Prior literature provides inadequate evidence. A few scholars explore its antecedents from some perspectives (e.g. organizational or team structure) to address this gap but yield confusing results. This study aims to clarify the mechanism to reach TMT strategic consensus and explore both the effect of collective team identification and information elaboration. Design/methodology/approach Stepwise regression analysis is applied to explore the formation process of strategic consensus by using data collected from 126 TMTs of Chinese firms. Findings Results show that collective team identification has a positive effect on TMT strategic consensus, whereas information elaboration has a U-shaped effect. Further, the U-shaped relationship between information elaboration and TMT strategic consensus is strengthened by collective team identification. Originality/value This study provides a nuanced explanation of the antecedents of strategic consensus in TMT by exploring the effects of collective team identification and information elaboration. Particularly, this study proposes a U-shaped relationship between information elaboration and strategic consensus, which enriches TMT decision-making literature and consensus research. Moreover, by examining the moderating effect of collective team identification, this study articulates why TMT members fail to achieve strategic consensus even when they have sufficiently discussed the task-relevant information.