Top management team attraction as a strategic asset: A longitudinal simulation test of the Resource Based View

Abstract

The Resource Based View's (RBV) main prescription is that strategic assets are sustainable sources of superior industry returns. In the current research, we examined the ability of top management team attraction (TMTA) to operate as a strategic asset and produce sustainable competitive advantage. We used a longitudinal study of 83 simulation teams functioning as top management teams of competing airlines to demonstrate that top management team attraction was positively associated with superior returns, and that this relationship increased over time. Our study benefits both theorists and managers. The key implication for theorists is that TMTA can positively impact firm performance over time, thereby providing strong support for the RBV. The key implication for managers is that taking steps to enhance TMTA and team dynamics can create competitive advantage for their firms.