Does top management team diversity promote or hamper foreign expansion?

Prior research suggests that top management team (TMT) diversity increases strategic innovation. We extended this argument to the case of entering new geographic areas. In addition to exploring the cognitive implications of TMT diversity, as done in prior research, we explored when diversity may lea...

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Veröffentlicht in:Strategic management journal 2007-07, Vol.28 (7), p.663-680
Hauptverfasser: Barkema, Harry G., Shvyrkov, Oleg
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container_title Strategic management journal
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creator Barkema, Harry G.
Shvyrkov, Oleg
description Prior research suggests that top management team (TMT) diversity increases strategic innovation. We extended this argument to the case of entering new geographic areas. In addition to exploring the cognitive implications of TMT diversity, as done in prior research, we explored when diversity may lead to the formation of subgroups within TMTs hampering communication and the propensity to enter new geographic areas. We also examined how these positive cognitive and negative social implications change over time as TMT members interact over the years. The hypotheses were tested using ordinal probit analysis and data on 2,159 expansions of 25 companies over a period of more than three decades.
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source Jstor Complete Legacy; Wiley Online Library Journals Frontfile Complete
subjects Business innovation
Business studies
Corporate strategies
Countries
Cultural diversity
Demography
Educational innovation
Empirical research
Ethnicity
executive demography
Expansion
faultlines
foreign expansion
Foreign investments
Functional diversity
Geodetic position
Group decision making
Innovations
International market
Internationalization
Investment strategies
Management research
Management science
Senior management
Social interaction
Strategic management
Studies
top management team
Upper management
title Does top management team diversity promote or hamper foreign expansion?
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