Associate Professor Jun Li's sole-authored research on top management team functional complementarity and post-IPO firm performance has recently been accepted for publication at Long Range Planning, a leading international journal for the field of strategic management ("A" on the ABDC list).
Using a sample of 250 US biotechnology IPO firms that went public from 1991-2019, the paper examines how top management team (TMT) IPO reconfiguration – the managerial change between the time immediately before and after an initial public offering (IPO), affects firm performance in the post-IPO years, through the lens of TMT functional complementarity — the degree of differing functional knowledge held by the firm’s TMT. The results show that TMT with higher functional complementarity at the IPO time leads to higher post-IPO firm performance, measured by average return on assets in the three years after the IPO. This positive relationship is even stronger when a high percentage of original/founding managers are board of directors at the IPO time (insider board members).
