This paper aims to introduce the concept of top management team (TMT) regulatory focus to explain the differences in executive motivation. Upper echelons research has demonstrated that top managers’ willingness to deviate from their current strategies is a key determinant of organizational success. However, it is not clear why some TMTs are motivated to embrace strategic change while others are motivated to favor the strategic status quo.
Recent work in the psychology of motivation is used to develop a conceptual model explaining how the regulatory focus of TMTs can impact their outlooks toward strategic change.
It is theorized that there is a positive (negative) relationship between promotion (prevention)-focused TMTs and strategic change. It is also theorized that executives’ performance aspirations, firm maturity and the stability of the environment will influence the relationship between regulatory focus and strategic change.
Although the theoretical explanations provided by past research on top manager motivation are psychological in their general focus, with few exceptions research has not sought to understand the specific deep-level, socio-cognitive characteristics that shape executives’ perceptions of strategic change. By developing an understanding of the psychological determinants of strategic change, as well as the interplay between these determinants and firm- and environment-level factors, this paper represents a step in the direction of explaining why some TMTs are motivated to embrace strategic change while others seem “locked-in” to the status quo.
