Cognitive Diversity among Upper-Echelon Executives: Implications for Strategic Decision Processes

Diversity among executives is widely assumed to influence a firm's strategic decision processes, but empirical research on this linkage has been virtually nonexistent. To partially fill the void, we drew upon three separate studies to examine the impact of executive diversity on comprehensiveness of strategic decision-making and extensiveness of strategic planning. Contrary to common assumptions of researchers and executives, our results suggest that executive diversity inhibits rather than promotes comprehensive examinations of current opportunities and threats, and inhibits rather than promotes extensive long-range planning. In light of the cumulative research showing that firm performance is related to both comprehensiveness and extensiveness, our results provide evidence for an indirect connection between executive diversity and firm performance.