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Adopting an information-processing perspective and drawing on work in social psychology, this study examined the effects of top management team size and chief executive officer (CEO) dominance on firm performance in different environments. Data from 47 organizations revealed that firms with large teams performed better and firms with dominant CEOs performed worse in a turbulent environment than in a stable one. In addition, the association between team size and CEO dominance, and firm performance, is significant in an environment that allows top managers high discretion in making strategic choices but is not significant in a low-discretion environment.
Haleblian et al. (Sun,) studied this question.