Based on upper echelons theory and the logic embodied in the entrepreneurship, strategic choice, and resource-based view literatures, a theoretical model was developed showing the relationships between top management teams’ (TMT) entrepreneurial drive, TMT strategic choices, and superior industry performance, from which testable hypotheses were formed. The authors used a strategic management simulation model to gather the requisite data to perform their empirical testing. The results strongly support the hypotheses that TMT entrepreneurial drive is positively associated with superior industry performance and that the entrepreneurial orientation of the TMT’s strategic choices is positively associated with superior industry performance.This study also found evidence that the relationship between TMT entrepreneurial drive and superior industry performance is moderated by TMT’s strategic choices. These results have important implications in terms of how TMT’s entrepreneurial drive and their strategy choices can affect firm performance in today’s hypercompetitive environment.
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