1st  WORKSHOP  ON  TOP  MANAGEMENT  TEAMS  &  BUSINESS  STRATEGY  RESEARCH:  RESPONSES  AND  ADAPTABILITY  IN  TURBULENT  TIMES  (Valencia,  March  22nd  and  23rd,  2010)  

¡  Introduction  ¡  Research  Objective  ¡  Literature  Review  ¡  Research  Method  ¡  Conceptual  Model  ¡  Result  ¡  Conclusion  ¡  Limitations  

¡  Top  management   team  composition   is   a   big  issue   in   international   business   and  management  research,    

¡  limited  academic   literature   investigate  about  this   is   in   Indonesia,   especially   on   mining  company.  

¡ Most   studies   have   been   conduct   in   US   and  Europe.   So   the   result   for   these   studies  reflecting   diversity   and   cultural   of   the  underlying  US  and  Europe  population.  

¡  The   Indonesia   economy   system   is   based   on  agricultural   production   and   extraction   of  natural   resources,   especially   oil,   natural   gas,  coal,  timber,  and  fish.    

¡  Indonesia  business  system  today  is  very  much  a  reflection  of  the  legacy  of  former  president  Soeharto  (1966  –  1998)  

¡  Does   the   compos i t ion   o f   the   Top  Management   Team   affect   the   Indonesia  mining  companies  performance?  

Pegels  and  Yang  (2000:697),  Vroom  and  Pahl,  1971)  

State  that  older  managers  tend  to  avoid  risk  while  the  young  

one  tend  to  pursue  more  risky  and  innovative  growth  strategies  

AGE  

At  demographic  level,  the  diversity  of  the  team  refers  to  variables  such  as  age  which  

are  the  dominant  measure  of  difference  in  the  team.  

Foreigner  

• Lublin   (2005),   corporate   boards   of   MNCs  are  going  global,    • particularly  in  Europe  90%  contrast  in  US  only  35  %  

• Veen   and   Marsman   (2008)   nationality  diversity   is   an   important   requirement   for  quality   of   strategic   decision.   More  foreigner   in   TMTs   in   companies   has   a  better   performance   than   just   a   few  foreigner  

Gender  Glunk,  Heijltjes  and  Olie  (2001)  found  that   gender   distribution   to   be   highly  comparable   among   the   three  countries;   there   are   few   women  executives  in  the  30  companies  in  UK,  Denmark  and  The  Netherlands  

Educational  Level  

Dahlin  et  al  (2005),  education  diversity  in  TMT  affects  the  range  and  depth  of  the  use  of  positive  information,  and  may  negatively  

affect  the  combination  of  information.    

Herrmann  and  Datta,  2005;  Hambrick  and  

Mason,  1984,  subsection  should  be  a  

complementary  

DEDUCTIVE  METHOD  

18  MINING  COMPANIES  LISTED  BEI    

174  EXECUTIVES  

AGE    

-­‐0.76  

FOREIGNER  

0.120  

GENDER  

0.042  

EDUCATION  LEVEL  

-­‐0.234  

ROA  

¡  From  the  ANOVA  table,  the  significant  value  =  0.298>α,  it  can   be   concluded   that   the   independent   variables  simultaneously   does   not   affect   the   dependent   variables,  so  in  other  words  the  top  management  team  composition  does  not  affect  the  company  performance.  

AGE  –  ROA  0.300>α  

FOREIGNER  –  ROA  0.435>α  

GENDER  –  ROA  0.728>α  

EDUCATIONAL  LEVEL  –  ROA  0.077>α  

¡  The  conclusion  was  that  the  independent  variables  simultaneously   does   not   affect   the   dependent  variables,   so   top   management   team   composition  does  not  affect  the  company  performance.  Also  all  variables   including   age,   foreigner,   gender   and   the  level   of   education   of   the   top   management   team  have  no  influence  on  the  performance  of  Indonesia  mining  companies  

¡  LIMITED  SAMPLE,  18  COMPANIES  ¡  LIMITED   VARIABLE   FOR   MEASURE   THE  COMPANY  PERFORMANCE  

¡  ONLY  ONE  YEAR  ANNUAL  REPORT  

THANK  YOU  FOR  YOUR  ATTENTION    

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