Top management team functional background diversity and firm performance: Examining the roles of team member colocation and environmental uncertainty

Albert A. Cannella, Jong Hun Park, Ho Uk Lee

Research output: Contribution to journalArticle

285 Citations (Scopus)

Abstract

Prior findings on the association between top management team (TMT) functional diversity and firm performance have been inconsistent. We consider the moderating effects of internal context (colocation of TMT members) and external context (environmental uncertainty) on the TMT diversity-firm performance relationship. Additionally, we consider both dominant and intrapersonal functional diversity. In our results from 207 U.S. firms in 11 industries, the effects of TMT functional diversity on firm performance become more positive as the proportion of TMT members with offices in the same location increases. The effects of intrapersonal functional diversity also become more positive as environmental uncertainty increases.

Original languageEnglish (US)
Pages (from-to)768-784
Number of pages17
JournalAcademy of Management Journal
Volume51
Issue number4
StatePublished - Aug 2008
Externally publishedYes

Fingerprint

Environmental uncertainty
Firm performance
Top management teams
Co-location
Uncertainty
Functional diversity
Industry
Proportion
Team diversity
Moderating effect

ASJC Scopus subject areas

  • Business and International Management
  • Management of Technology and Innovation
  • Strategy and Management
  • Business, Management and Accounting(all)

Cite this

Top management team functional background diversity and firm performance : Examining the roles of team member colocation and environmental uncertainty. / Cannella, Albert A.; Park, Jong Hun; Lee, Ho Uk.

In: Academy of Management Journal, Vol. 51, No. 4, 08.2008, p. 768-784.

Research output: Contribution to journalArticle

@article{c55022fcca304aff8afacd9da173407d,
title = "Top management team functional background diversity and firm performance: Examining the roles of team member colocation and environmental uncertainty",
abstract = "Prior findings on the association between top management team (TMT) functional diversity and firm performance have been inconsistent. We consider the moderating effects of internal context (colocation of TMT members) and external context (environmental uncertainty) on the TMT diversity-firm performance relationship. Additionally, we consider both dominant and intrapersonal functional diversity. In our results from 207 U.S. firms in 11 industries, the effects of TMT functional diversity on firm performance become more positive as the proportion of TMT members with offices in the same location increases. The effects of intrapersonal functional diversity also become more positive as environmental uncertainty increases.",
author = "Cannella, {Albert A.} and Park, {Jong Hun} and Lee, {Ho Uk}",
year = "2008",
month = "8",
language = "English (US)",
volume = "51",
pages = "768--784",
journal = "Academy of Management Journal",
issn = "0001-4273",
publisher = "Academy of Management",
number = "4",

}

TY - JOUR

T1 - Top management team functional background diversity and firm performance

T2 - Examining the roles of team member colocation and environmental uncertainty

AU - Cannella, Albert A.

AU - Park, Jong Hun

AU - Lee, Ho Uk

PY - 2008/8

Y1 - 2008/8

N2 - Prior findings on the association between top management team (TMT) functional diversity and firm performance have been inconsistent. We consider the moderating effects of internal context (colocation of TMT members) and external context (environmental uncertainty) on the TMT diversity-firm performance relationship. Additionally, we consider both dominant and intrapersonal functional diversity. In our results from 207 U.S. firms in 11 industries, the effects of TMT functional diversity on firm performance become more positive as the proportion of TMT members with offices in the same location increases. The effects of intrapersonal functional diversity also become more positive as environmental uncertainty increases.

AB - Prior findings on the association between top management team (TMT) functional diversity and firm performance have been inconsistent. We consider the moderating effects of internal context (colocation of TMT members) and external context (environmental uncertainty) on the TMT diversity-firm performance relationship. Additionally, we consider both dominant and intrapersonal functional diversity. In our results from 207 U.S. firms in 11 industries, the effects of TMT functional diversity on firm performance become more positive as the proportion of TMT members with offices in the same location increases. The effects of intrapersonal functional diversity also become more positive as environmental uncertainty increases.

UR - http://www.scopus.com/inward/record.url?scp=51549090657&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=51549090657&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:51549090657

VL - 51

SP - 768

EP - 784

JO - Academy of Management Journal

JF - Academy of Management Journal

SN - 0001-4273

IS - 4

ER -