Predicting the Multi-Level Relationships between Top Management Team Personality as a Micro Foundation of Dynamic Capabilities, Learning and Firm Performance.

The current study provides empirical evidence and an empirical examination of the micro-foundations of dynamic capabilities through an examination of dynamic managerial capabilities and Chief Executive Officer (CEO) and Top Management Team (TMT) personality. This marks a move away from the inherent theoretical and conceptual nature of the dynamic capabilities literature. It does so by empirically testing the extent to which personality can be used to predict dynamic managerial capabilities. The concept of dynamic managerial capabilities captures the critical role leaders within the firm play. There are no mechanisms that capture dynamic managerial capabilities and this research develops a tool to measure dynamic managerial capabilities at the CEO and TMT level.

Firstly, this research identifies and measures dynamic managerial capabilities at the CEO/TMT level and links the dynamic managerial capabilities of sensing, seizing and transforming to personality. It, in turn provides empirical support that the personality of the CEO/TMT can be used to predict dynamic managerial capabilities within the firm. It therefore positions personality as a micro-level foundation of dynamic capabilities. Secondly, it identifies that dynamic capabilities do not lead to firm performance and this in turn raises concern surrounding the importance placed on dynamic capabilities within the field of strategic management. This research finds no empirical support for a relationship between the capabilities of the TMT to sense, seize and transform and firm performance. Finally, this research provides support for the importance of learning within the firm and identifies that learning is a predictor of firm performance. Learning is therefore shown in this research to be a mechanism through which organisations develop and evolve macro-level dynamic capabilities.

This research therefore contributes to both an understanding as to the role personality plays but also offers a platform from which to measure the dynamic managerial capabilities of sensing, seizing and transforming at the individual and team level. Offering a multi-level exploration, this research offers an empirical examination of personality and dynamic managerial capabilities, which transcends across the organisations in question. The results of this research thus contribute to knowledge in understanding personality as a micro level origin of dynamic capabilities and the upmost importance of learning as a mechanism to support more macro level dynamic capabilities.