neglected the characteristics’ structural feature. As the carrier of characteristics
diversity, the upper echelons’ influence on the team and the enterprise is the
comprehensive reflection of their characteristic attributes. Looking at some
characteristics in the distribution of the team in isolation has certain limitation. The
Faultline Theory provides a new perspective for upper echelons’ characteristic
diversity research.
At present, the faultline research in our country is still in the initial stage, and upper
echelons’ faultline study is less. Because the upper echelons’ cognitive basis, value
orientation, decision-making and implementation ability are not easy to measure,
therefore, from the upper echelons demography characteristic diversity, this paper
discuss the relationship between upper echelons’ faultlines and the enterprise
performance based on calculation of their faultline strength and faultline distance, and
through the integration of upper echelons’ diversity research, team process, Upper
Echelon Theory and Faultline Theory. We obtained the effective sample data of upper
echelons from 46 enterprises mainly through the questionnaire and checking
references. We analyze TMT and the board of directors’ faultlines influences on
enterprise performance with the data. The research result can provide empirical
support for enterprises to improve leadership structure and enterprise performance.
This research idea is: Chapter 1 is introduction, mainly including the research
background and significance, the research object, the definition ,research methods
and innovation points; Chapter 2 is literature review about the upper echelons
diversity research, the upper echelons theory, upper echelons team process research
and faultline theory. This paper analyzes the research status at home and abroad and
reviews, laying the foundation for the next step of the design of the variable. The third
chapter is study design. The research constructs the conceptual model of the
relationship of the upper echelons faultline-team process-enterprise performance.
Related assumptions are put forward and the design of the questionnaire is introduced.
Chapter 4 is empirical study. The research sample and data collection are introduced,
and analysis of scale reliability and validity are showed. The descriptive statistical
analysis, correlation analysis, clustering analysis, hierarchical regression analysis and
regression coefficient test in turn by regression analysis are made with spss17.0
statistical software.
The results are as follows:
(1) The faultline strength and faultline distance of the board of directors and TMT
faultline distance have no significant influence on enterprise performances, however,
TMT faultline strength has a significant direct and indirect influence, and it’s
negative.
(2) TMT faultline strength produces negative effect on team communication, team
trust, equilibrium degree of power allocation and shared goals, and positive on the
team's relationship conflict and task conflict.
(3) Team process variables, such as team communication, power allocation, task
conflict and shared goals, play a significant mediating effect in the relationship
between TMT faultline strength and enterprise performance.
Key Words: Upper Echelons, the Board of Directors, TMT, Faultline,