Upper Echelons Theory

Definition: Upper Echelons Theory states that an organization's strategic choices and performance outcomes are partially or even largely influenced by characteristics of its top-level management team (e.g., age, experience, education and values). In other words, who leads matters as UET assumes a correlation between the organizational outcome and managerial background characteristics.
UET was introduced by Donald C. Hambrick and Phyllis A. Mason in 1984.
The UET characteristics aforementioned play a role in explaining why companies in the same industry pursue different strategies, despite facing similar market conditions.

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