The Relationship between Top Management Team Characteristics and Firm Performance after ERP System Adoption

Abstract

Based on the upper-echelons theory, this paper examines the relationship between the top management team (TMT) characteristics and firm performance after enterprise resource planning (ERP) system adoption. In order to distinguish between two different operating types of businesses, namely, family firms and non-family firms, which provide different results regarding the relationship between the TMT characteristics and firm performance after ERP adoption, this study further divides the sample into two groups, that is, family firms and non-family firms.

The empirical results indicate that TMTs with a higher level of education and greater stock ownership have superior accounting and market performance after ERP adoption. CEO duality has a positive impact on accounting performance, but a negative impact on market performance after ERP adoption. In addition, this study also finds that TMTs are characterized by different management efficiencies in family firms and non-family firms. Finally, this study finds that the longer that the ERP system is adopted, the more insignificant is the effect of TMT characteristics on firm performance after ERP adoption.