ABSTRACT Drawing on the upper-echelons (UE) theory and strategic human resources management (SHRM) framework, this study aims to study the effects of top management team (TMT) characteristics on business strategy, strategic HR system relationship, and TMT behavioral integration as a moderating variable among the relationships. This research used both a survey and company data of 122 publicly listed firms in Taiwan to tested an integrated theoretical model relating to TMT characteristics (i.e., TMT demographic heterogeneity and TMT perception towards HR value), business strategies (i.e., differentiation strategy), strategic HR system (i.e., high performance work system ¡VHPWS) and TMT behavioral integration. The findings of this study included: (1) the direct positive relationship between the differentiation strategy and HPWS; (2) the significant relationship between the TMT demographic heterogeneity (i.e. TMT functionality heterogeneity and TMT educational background heterogeneity) and TMT perception towards HR value, and differentiation strategy; (3) the significant relationships between TMT perception towards HR value and differentiation strategy as well as its relationship with HPWS; and (4) a full moderation effect of TMT behavioral integration in the relationship between TMT perception towards HR value and HPWS. This study demonstrates significant associations between TMT, business strategy and HPWS. Reported results support some of the previously established relationships. Implications for future research are discussed.