Top Management Team Diversity: A Review of Theories and Methodologies

Abstract

This paper reviews empirical research on top management team (TMT) diversity. A number of scholars have concluded that upper echelons findings, in particular in terms of the consequences of TMT heterogeneity, have been inconclusive. This review conducts an in-depth analysis of conceptual and methodological issues related to upper echelons diversity studies and offers some directions for future research. Sixty journal articles, published in ten top international journals over a 22-year period (1984-2005), were analyzed. The results suggest that upper echelons research is increasingly multidisciplinary in nature; however, in-depth inquiries into the antecedents of TMT composition and the multilevel contextual influences on the implications of TMT heterogeneity are still needed. This review finds that clarity about level of analysis, both theoretically and empirically, remains an important issue in the field and thus a multilevel approach is strongly encouraged. Moreover, the complexity of diversity as a theoretical construct needs to be acknowledged and operationalized accordingly in upper echelons studies.

Empresa Familiar, Equipos Directivos, Diversidad Y Ambidiestría en Las Pymes

“…Esto dificulta el enriquecimiento de la información que manejan y el uso de puntos de vista alternativos. Por tanto, la diversidad en el TMT puede resultar beneficiosa desde una perspectiva de toma de decisiones (Minichilli et al, 2010;Nielsen, 2010).…”

“…Estas variables se obtuvieron de los datos recogidos en los cuestionarios La literatura sobre TMT utiliza diferentes medidas de diversidad. En este trabajo la concebimos como separación, operativizada con el rango (Nielsen, 2010), esto es, diferencia entre la edad del directivo más viejo y la del más joven. Las variables que entran en el cálculo están medidas con la escala: 1 = menos de 20 años, 2 = entre 21 y 30 años, 3 = entre 31 y 40 años, 4 = entre 41 y 50 años, 5 = entre 51 y 60 años, y 6 = más de 60 años.…”

Board Heterogeneity and Organisational Performance: The Mediating Effects of Line Managers and Staff Satisfaction

“…However, while research in this area has become increasingly sophisticated, questions remain about the precise mechanisms that shape the relationship between TMT heterogeneity and performance (Nielsen, 2010). Carpenter et al (2004) note how the underlying framework used by Upper Echelons (UE) scholars tends to be a linear (or direct) one, assuming a relatively straightforward relationship between the demographics of TMT's, their strategic choices and performance outcomes.…”

“…In particular, attention has focused on the question of heterogeneity in TMTs and the extent to which this makes a difference (see Carpenter, Geletkanycz, & Sanders (2004) ;Homberg & Bui (2013); Nielsen (2010)). Central to this work is the argument that 'the demographic characteristics of executives' may be 'used as valid, albeit incomplete and imprecise, proxies of executives' cognitive frames and behaviours' (Hambrick, 2007;p.…”

“…Following calls from literature reviews on UE (Carpenter et al, 2004;Finkelstein & Hambrick, 1996;Nielsen, 2010), the study adopts an extensive notion of TMT, which includes the organisation top senior managers (the traditional focus of much UE research) and the other board directors, namely the nonexecutive members. TMT and governing board are, henceforth, used interchangeably.…”