Extending EO and the Role of the Top Management Team

This chapter centers on the top management team, which is an under-explored context in EO research. I begin the chapter by tackling the question if the firm wants to maximize its EO, should it universally have entrepreneurially minded senior executives; that is, to be an entrepreneurial firm, its senior leaders should themselves be inclined toward entrepreneurship. I also briefly consider the perspective sometimes raised in the EO literature that a firm’s performance yield from EO may be a function of counterbalance among the executive team—a CEO with a high tolerance for entrepreneurial risk may benefit from a chief operating officer with a modest risk tolerance. I then explore differences across senior executive roles, and how those roles may enable or constrain the firm’s EO. I then investigate the role of performance evaluations, and how the firm’s appraisal structure may enable or constrain EO. Lastly, I consider the role of middle management in the firm’s EO, specifically through the lens of strategic execution.