Top Management Team Nationality Diversity and Firm Performance: A Multilevel Study

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    This research reexamines the equivocal relationship between top management team (TMT) diversity and firm performance. Combining upper echelons theory with insights from institutional theory, we establish a new, timely dimension of TMT diversity—nationality diversity—and develop an integrated multilevel framework explaining how its performance implications vary across contextual settings. We find that nationality diversity is positively related to performance; and this effect is stronger in (a) longer tenured teams, (b) highly internationalized firms, and (c) munificent environments. More generally, our research demonstrates that the consequences of TMT diversity depend on the (1) specific attributes of diversity being considered and (2) firm and industry conditions under which strategic decisions take place.
    Original languageEnglish
    JournalStrategic Management Journal
    Volume34
    Issue number3
    Pages (from-to)373-382
    ISSN0143-2095
    DOIs
    Publication statusPublished - 2013

    Keywords

    • Top Management Teams
    • Performance
    • Multilevel
    • Multinational Teams

    Cite this

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    title = "Top Management Team Nationality Diversity and Firm Performance: A Multilevel Study",
    abstract = "This research reexamines the equivocal relationship between top management team (TMT) diversity and firm performance. Combining upper echelons theory with insights from institutional theory, we establish a new, timely dimension of TMT diversity—nationality diversity—and develop an integrated multilevel framework explaining how its performance implications vary across contextual settings. We find that nationality diversity is positively related to performance; and this effect is stronger in (a) longer tenured teams, (b) highly internationalized firms, and (c) munificent environments. More generally, our research demonstrates that the consequences of TMT diversity depend on the (1) specific attributes of diversity being considered and (2) firm and industry conditions under which strategic decisions take place.",
    keywords = "Top Management Teams, Performance, Multilevel, Multinational Teams",
    author = "Nielsen, {Bo Bernhard} and Sabina Nielsen",
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    }

    Top Management Team Nationality Diversity and Firm Performance : A Multilevel Study. / Nielsen, Bo Bernhard; Nielsen, Sabina.

    In: Strategic Management Journal, Vol. 34, No. 3, 2013, p. 373-382.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - Top Management Team Nationality Diversity and Firm Performance

    T2 - A Multilevel Study

    AU - Nielsen, Bo Bernhard

    AU - Nielsen, Sabina

    PY - 2013

    Y1 - 2013

    N2 - This research reexamines the equivocal relationship between top management team (TMT) diversity and firm performance. Combining upper echelons theory with insights from institutional theory, we establish a new, timely dimension of TMT diversity—nationality diversity—and develop an integrated multilevel framework explaining how its performance implications vary across contextual settings. We find that nationality diversity is positively related to performance; and this effect is stronger in (a) longer tenured teams, (b) highly internationalized firms, and (c) munificent environments. More generally, our research demonstrates that the consequences of TMT diversity depend on the (1) specific attributes of diversity being considered and (2) firm and industry conditions under which strategic decisions take place.

    AB - This research reexamines the equivocal relationship between top management team (TMT) diversity and firm performance. Combining upper echelons theory with insights from institutional theory, we establish a new, timely dimension of TMT diversity—nationality diversity—and develop an integrated multilevel framework explaining how its performance implications vary across contextual settings. We find that nationality diversity is positively related to performance; and this effect is stronger in (a) longer tenured teams, (b) highly internationalized firms, and (c) munificent environments. More generally, our research demonstrates that the consequences of TMT diversity depend on the (1) specific attributes of diversity being considered and (2) firm and industry conditions under which strategic decisions take place.

    KW - Top Management Teams

    KW - Performance

    KW - Multilevel

    KW - Multinational Teams

    U2 - 10.1002/smj.2021

    DO - 10.1002/smj.2021

    M3 - Journal article

    VL - 34

    SP - 373

    EP - 382

    JO - Strategic Management Journal

    JF - Strategic Management Journal

    SN - 0143-2095

    IS - 3

    ER -