Recent research has illustrated that demographic diversity influences the outcomes of public sector organizations. Most studies have focused on workforce diversity; by comparison, little is known about how managerial diversity affects organizational outcomes. This article focuses on gender diversity in the top management teams of public organizations and its relationship to financial performance. Theory suggests that management diversity can be a positive asset for organizations, allowing for the use of more diverse knowledge and human skill sets. Results of this study, however, suggest that organizations may only be able to leverage these advantages if they have a supporting management structure. In a longitudinal study of top management teams in Danish municipalities, the authors find that gender diversity in top management teams is associated with higher financial performance, but only in municipalities with a management structure that supports cross‐functional team work. These results are interpreted in light of existing theory, and implications are suggested.

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Although development in China is quite heterogeneous across regions, little research has explored how the value of Chinese firms’ political ties is contingent on the institutional and economic development of firms’ regional environment. This article explores some of the factors that moderate the benefit of political ties, differentiating between ties to central and local government. The study investigates how benefits of ties to central and local government are moderated by regional market and economic development, respectively. The study is based on a quantitative analysis of 858 listed Chinese firms. The results suggest that firms enjoy a positive effect of political ties but mainly ties to central government. The analysis, furthermore, finds these ties to be less valuable in economically well-developed regions. Market development, on the other hand, does not moderate the effects of local or central government ties.

This article investigates how executive succession influences the comprehensiveness of structural changes pursued by public organizations. Executive successions are important events for organizations that provide salient opportunities for introducing organizational change, yet little research has analyzed this relationship. The author argues that the less familiarity a new executive has with the organization and the field in which it works, the more likely it is that comprehensive organizational change will take place. Empirical results from quantitative analyses of executive succession events in Danish municipalities from 1984 to 2000 confirm this. Interestingly, the degree to which new practices are legitimized moderates the findings. Inside successors are more likely to conduct comprehensive structural changes after new practices receive normative and regulatory legitimacy. The article contributes to the literature on executive succession by highlighting how it is an antecedent to different types of organizational change. Contributions to practitioner and public management research are discussed.

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