Top management team’s intellectual capital and firm performance

Intellectual capital (IC), which is frequently associated with firm performance, is an organisational intangible asset, and is commonly categorised into three core components: human, structural, and relational capital. By integrating the Upper Echelon Theory and the Resource-Based View of the firm, this paper aims to study not only the net effect of TMT diversity in human capital on performance but also the moderator effect of corporate strategy (Product and International diversification) on performance. The research focuses on a longitudinal study for a sample of multinational enterprises from diverse industries (trading, service, finance, and technology) whose headquarters are in Spain. The study contributes towards the comprehension of the complexity embodied in the Check relation strategy firm decision, TMT’s IC and firm performance. This paper answers the call to explore new causal relations that influence firm performance that can therefore help managers to adopt the best decision-making strategies, and to shed light on the inconsistent and inconclusive results derived from the literature.