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Organization Studies
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Power and Glory: Concentrated Power in Top Management Teams

Henrich R. Greve, PhD

Henrich R. Greve Norwegian School of Management, Oslo, Norway, henrich.greve{at}bi.no

Hitoshi Mitsuhashi

University of Tsukuba, Japan, hitoshi{at}sk.tsukuba.ac.jp

Strategic change is one of the most critical decisions that organizations make. We focus on the role of groups at the upper echelon of hierarchies and propose that concentrated power either in the CEO or the top management team is prone to be exercised, leading to a high rate of strategic change. We derive hypotheses on how formal and informal power concentration in top management teams have an effect on changes in corporate diversification. The findings suggest that power concentration strongly affects decision making.

Key Words: power • decision making • organizational change • top management teams

Organization Studies, Vol. 28, No. 8, 1197-1221 (2007)
DOI: 10.1177/0170840607075674
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