Abstract:How to effectively manage TMT faultlines to fully integrate team cognitive resources is a popular topic in the field of strategic leadership research. However, there are fewer quantitative empirical studies exploring the interaction effect of TMT faultlines and structural interdependence on firm performance. In this study, we examine the nonlinear relationship between TMT faultlines and firm performance, and the moderation effects of team interdependence. Results of data analysis show that the relationship between different types of TMT faultlines and firm performance is varied form each other. That is, task related faultlines have an inverted Ushaped relationship with firm performance and social category faultlines have a Ushaped relationship with firm performance. Further, TMT horizontal interdependence and vertical interdependence would positively moderate the effect of TMT faultlines on firm performance and significantly enhance the positive effect of task related faultlines. Relative research and analysis of this article possesses important reference to optimizing top management team structure and improving team efficiency.