When Opportunities and Challenges Co-exist: A Three-way Interaction on TMT Strategic Dissent and Firm Performance

Prior studies of strategic dissent and firm performance have yielded inconclusive findings. The lack of contextual consideration is an important attribution which remains unexplored, especially until simultaneous effect of multiple environmental factors is identified, the bivariate relationship is not well understood. The authors thus provide a three-way interaction analysis. Dynamic and munificent environment are believed to exert moderating effects, maintaining that dynamism moderates in the linkage between TMT strategic dissent and organizational profitability, whereas the interplay will be contingent upon the capacity to which an environment supports growth of the firms. Specifically, our findings reveal that the tendency, for a dissent strategic TMT to have a positive effect on performance when dynamism is low rather high, is stronger under low environmental munificence.