Abstract
The paper is based on the theory of top echelon theory and defines top management team competence by the concept of team human capital. The paper studies on the relation between the competence and enterprise's performance through heterogeneity and competence. Otherwise, it studies on the supply of team human capital and then gets a conclusion: The heterogeneity of TMT must be at a fit level in order to make an enterprise get the highest performance. We divide the competence into two parts: one is collaboration; the other is the knowledge special for production. In order to make an enterprise costs least, the first part had better be obtained through market but the second part should be obtained by training within the enterprise.