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.

How firms compete for an advantage is among the most critical questions in Business Strategy. While several researchers link executives to key strategic outcomes, much less is understood on how the Upper-Echelon team drives the actual competitive behavior of the firm, which is manifested in the launching of observable and purposeful competitive actions within the marketplace. Considering that competitive behavior research tends to overlook the importance of human assets, in general, and executive human assets, in particular, I explore how the knowledge, skills, and abilities of the Chief Executive (CEO), Top Management Team (TMT), and Board of Directors (BOD) impact a firm's competitive behavior. In addition, I examine how sources of Social Capital, or the relationships between these Upper-Echelon actors, influence a firm's competitive behavior. Moreover, I argue and test for the moderating influence of executive compensation on firm competitive behavior. Applying relational demography to capture Human Capital and sources of Social Capital within the U.S. Pharmaceutical Industry, I find some empirical support that executives do, indeed, affect firm competitive behavior. Overall, the empirical evidence indicates that the Human Capital of the CEO, TMT, and BOD can influence all dimensions of a firm's Competitive Intensity. Unexpectedly and, contrary to prediction, executive dissimilarity (not similarity) tended to greatly influence a firm's Competitive Activity and Repertoire Complexity. Also, the moderating impact of executive bonus and incentive pay was largely supported. This dissertation contributes to both the competitive behavior and Upper-Echelon literatures. Notably, this dissertation adds to the very limited work that attempts to theoretically link and empirically test for executive impact on firm competitive behavior. By so doing, it begins to open the "black box" on how human assets at the Upper Echelon affect strategic outcomes through a firm's competitive behavior. / Ph. D.