Upper Echelon Theory: Role of Community and Strategy

Abstract

In this paper I argue that community plays an important role in shaping the values and characteristics of top management teams. It builds on upper echelon theory to posit that community level characteristics are instrumental in framing the cognitions of CEOs and top executives. Strategic decisions made by managers in organizations represent the significant impact community has on top management teams. Examining the influence community has on top management teams provides additional implications about why certain firms perform better than others.

Keywords

• upper echelon theory
• strategic management
• top management
• corporate governance