Journal of Management studies - Journal of Management Studies 48:1 January 2011 doi 10.1111\/j.1467-6486.2010.00932.x Top Management Team Functional

Journal of Management studies - Journal of Management...

This preview shows page 1 - 3 out of 27 pages.

Top Management Team Functional Diversity and Firm Performance: The Moderating Role of CEO Characteristics Tine Buyl, Christophe Boone, Walter Hendriks and Paul Matthyssens University of Antwerp; University of Antwerp; Maastricht University; University of Antwerp abstract Past research indicates that the effect of TMT functional diversity on firm performance is equivocal. We address this issue by focusing on the integrative role of the CEO, postulating that the CEO’s expertise and background characteristics affect the TMT functional diversity–firm performance relationship, because of their impact on the exchange and integration of distributed knowledge within the TMT. Using a dataset of 33 Dutch and Belgian Information Technology firms we investigate the moderating role of three sets of CEO characteristics (functional background, status as founder, and shared experience with the other TMT members) on the relationship between TMT functional diversity and firm performance. Our results reveal that CEO and TMT characteristics do interact in realizing the potential advantages of distributed TMT functional expertise. INTRODUCTION Hambrick and Mason’s (1984) ‘upper echelons’ perspective triggered numerous studies on the impact of the demographic composition of an organization’s dominant coalition on organizational performance (for a review, see Certo et al., 2006). Taking an information-processing view (Certo et al., 2006; Edmondson et al., 2003; Finkelstein and Hambrick, 1990; Hambrick, 1994), we focus on diversity in the TMT (top management team) members’ functional background , which is an important source of expertise among executives (e.g. Bunderson and Sutcliffe, 2002). In the extant upper echelons research, it is recognized that TMT functional background diversity may both benefit and hamper organizational performance (Certo et al., 2006). On the one hand, functionally diverse teams have a larger pool of perspectives, skills, and non-overlapping knowledge at their disposal (Simons et al., 1999), and tend to have non-redundant peer networks increasing access to unique information (Ancona and Caldwell, 1992), stimulating effective Address for reprints : Tine Buyl, University of Antwerp, Faculty of Applied Economics, Department of Man- agement, Antwerp Centre of Evolutionary Demography, Prinsstraat 13, 2000 Antwerp, Belgium ([email protected]). © 2010 The Authors Journal of Management Studies © 2010 Blackwell Publishing Ltd and Society for the Advancement of Management Studies. Published by Blackwell Publishing, 9600 Garsington Road, Oxford, OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA. Journal of Management Studies 48:1 January 2011 doi: 10.1111/j.1467-6486.2010.00932.x
Image of page 1
decision-making (Certo et al., 2006). On the other hand, functional diversity might also provoke team fragmentation, which is a major source of ineffective functioning of TMTs (Hambrick, 1994; Hambrick and Mason, 1984).
Image of page 2
Image of page 3

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture