What a Diverse Top Management Team Means: Testing an Integrated Model

Prior research has produced inconsistent results on the relationship between top management team (TMT) diversity and firm performance. Drawing on the information–social categorization framework, this study is designed to investigate both the mechanism and the contextual factors underlying the relationship between TMT cognitive diversity and firm performance by examining them in a unified model so as to better understand how a diverse TMT works. Based on a multi‐sourced survey of top managers from 118 Chinese firms, this study finds that team interdependence and team cohesion moderate in the linkage between TMT cognitive diversity and elaboration of task‐related information. In addition, TMT's elaboration of task‐related information mediates the interactive effects of TMT cognitive diversity and team interdependence on firm performance as well as the interactive effects of TMT cognitive diversity and team cohesion on firm performance.     

Linking top management team age heterogeneity to firm performance: juxtaposing two mid-range theories

Previous research on top management team heterogeneity and firm performance has focused almost exclusively on the non-visible attributes (e.g. functional background, tenure) of cultural diversity as opposed to the visible attributes (e.g. age, race and gender). The few studies there are show inconsistent results. For example, most field work - consistent with social identity theory notions - shows that cultural diversity, in isolation has negative organizational consequences. Only a few laboratory studies, however - consistent with information and decision-making theories - show that diversity in groups relates to favourable organizational outcomes. As social identity theory suggests, we find that top management team (TMT) age heterogeneity, in isolation, relates negatively to return on assets. On sales growth (i.e. organizational growth), the relationship is positive, lending support for information and decision-making theories. However, we find a curvilinear relationship between TMT age heterogeneity and sales growth, supporting both the mid-range theories. More specifically, TMT age heterogeneity is positively related to sales growth at low and medium levels and negatively related to sales growth at high levels. In addition, results reveal that context moderates linear and non-linear relationships. The results provide evidence of the importance of cultural diversity in TMTs for competitive advantage but also suggest the complexities of increasing it to observe these benefits.     

Global team members’ performance and the roles of cross-cultural training,cultural intelligence,and contact intensity: the case of global teams in IT offshoring sector

Abstract

This study investigates an unexplored form of global team prevalent in the Information Technology (IT) offshoring sector where IT service providers work alongside with client representatives in a global team context. Guided by theories of intelligence and intergroup contact, this study investigates global team members’ individual-level task performance. Specifically, this study examines the development of global team members’ cultural intelligence (CQ) following cross-cultural training. This study also determines the effects of improved CQ on individual-level task performance and examines the moderating role of contact intensity on the relationship between improved CQ and individual-level task performance. Data on the development of CQ, participation in cross-cultural training, and contact intensity were collected from 225 global team members while data on task performance were obtained from each of the global team members’ supervisors. The results of the statistical analyses reveal that: (i) CQ improved following participation in cross-cultural training sessions; (ii) improved CQ is positively and significantly related to individual-level task performance; and (iii) contact intensity moderates the relationship between improved CQ and individual-level task performance. These findings have a number of theoretical and practical implications for international organizations such as those in the IT offshoring sector.     

Strategic alliance team diversity,coordination, and effectiveness

Drawing upon literatures on strategic alliances, teams, and diversity, we propose that strategic alliance team diversity warrants further examination. We suggest that strategic alliance team coordination moderates the relationship between strategic alliance team diversity and effectiveness. Specifically, we hypothesize that coordination strengthens the negative relationship between observable diversity characteristics of nationality and gender and team effectiveness. We also argue that coordination strengthens the positive relationship between nonobservable diversity characteristic of functional background and team effectiveness. Results from 109 team members, 44 team leaders, and 34 alliance executives involved with 44 strategic alliance teams in 15 firms partially support our hypotheses.     

Demographic Diversity in the Boardroom: Mediators of the Board Diversity–Firm Performance Relationship

Whereas the majority of research on board diversity explores the direct relationship between racial and gender diversity and firm performance, this paper investigates mediators that explain how board diversity is related to firm performance. Grounded in signalling theory and the behavioural theory of the firm, we suggest that this relationship operates through two mediators: firm reputation and innovation. In a sample of Fortune 500 firms, we find a positive relationship between board racial diversity and both firm reputation and innovation. We find that reputation and innovation both partially mediate the relationship between board racial diversity and firm performance. In addition, we find a positive relationship between board gender diversity and innovation.     

Age diversity and firm performance in an emerging economy: Implications for cross‐cultural human resource management

This study tests the effect of age diversity on firm performance among international firms. Based on the resource‐based view of the firm, it argues that age diversity among employees will influence firm performance. Moreover, it argues that two contextual variables—a firm's level of market diversification and its country of origin—influence the relationship between age diversity and firm performance. By testing relevant hypotheses in a major emerging economy, that is, the People's Republic of China, this study finds a significant and positive effect of age diversity and a significant interactive effect between age diversity and firm strategy on profitability. We also find a significant relationship between age diversity and firm profitability for firms from Western societies, but not for firms from East Asian societies. The paper concludes by discussing the implications of this study's findings. © 2011 Wiley Periodicals, Inc.     

Affective diversity and emotional intelligence in cross-functional sourcing teams

In cross-functional sourcing teams, differences in goals and personality traits can lead to tensions and reduced effectiveness. Diversity in teams can be conceptualized as surface-level diversity (e.g., gender, nationality) or as deep-level diversity (e.g., personality, attitudes). This study investigates the potentially negative effects of one category of deep-level diversity – namely, affective trait diversity – on sourcing team performance and how such negative effects might be mitigated through team members' emotional intelligence. The study analyzes a sample of 88 sourcing teams (234 team members) using moderated regression analyses. Sourcing team cohesion is found to fully mediate the relationship between affective diversity and team performance, while the collective emotional intelligence of the sourcing team positively moderates the diversity-cohesion relationship (moderated mediation). Thus, this study provides insights into both the mechanics of team diversity and the critical role of collective emotional intelligence in sourcing teams and thereby enables supply managers to better understand cross-functional team setups and effectiveness.     

The impact of racial and gender diversity in management on financial performance: how participative strategy making features can unleash a diversity advantage

How does racial and gender diversity in the management ranks affect the bottom line? Our findings indicate that participative strategy making (PSM) positively moderates the relationship between both racial and gender diversity in management and firm performance measured as return on assets. Specifically, PSM strengthens the positive relationship that exists between racial diversity in management and firm performance. Although no main effect is observed for gender diversity in management, our results reveal that gender diversity in management is positively related to performance when PSM is high. However, we find that gender diversity in management is negatively related to performance when PSM is low, while gender homogeneous management experience superior performance. We offer implications for diversity research to embrace and consider the role of PSM and ‘inclusiveness’.     

Optimizing team conflict dynamics for high performance teamwork

In the current review we consider theory and research involving task, relationship, and process conflict. We examine relationships with team performance and innovation with an eye toward recent meta-analytic findings. We then review recent research investigating the interplay of team conflict types in the form of team conflict profiles. We advance the Team Conflict Dynamics Model to connect conflict profiles with key variables in the nomological net: psychological safety, conflict management, and team performance. This model considers dynamics by examining conflict transformations over time, reciprocal effects of conflict management processes, and negative feedback loops. Moreover, the model incorporates contextual features involving team design and the organizational environment. This review is needed in order to integrate recent meta-analytic findings, conflict profiles, conflict dynamics, and contextual factors into a parsimonious model useful for guiding future research and practice.     

Socio‐demographic factors and shared leadership behaviors in dispersed teams: Implications for human resource management

Companies increasingly make use of geographically dispersed teams to capture knowledge residing at different locations. In this context, shared leadership is considered a key enabler of team performance. Taking a functional perspective on shared leadership, we thus investigate the relationship between shared leadership behaviors and team performance in dispersed teams. Furthermore, we analyze how socio‐demographic factors that are characteristic for dispersed teams (i.e., high female‐to‐male ratio, high mean age, and high levels of national diversity) affect shared leadership behaviors. Based on data from 96 dispersed teams, we show that shared leadership behavior fosters team performance. Further, we find the socio‐demographic characteristics typical for dispersed teams to foster shared leadership. Theoretical and managerial implications for human resource management are discussed. © 2012 Wiley Periodicals, Inc.     

Team autonomy,organizational commitment and company performance – a study in the retail trade

The study focuses on the relationship between perceived team autonomy and company performance through highlighting organizational commitment as a mediating factor in this relationship. Data collected in 2007 came from 25 small-sized companies in the retail trade, covering both the employer and employee levels (n = 369). This study aims to shed light on the following questions: first, is team autonomy associated with organizational commitment and company performance? Second, does commitment mediate the relationship between team autonomy and company performance? Results indicated that team autonomy was both directly and indirectly positively associated with company performance. Furthermore, organizational commitment partially mediated the relationship between team autonomy and company performance. Theoretical and practical implications of these findings are discussed.     

知识型员工绩效的影响因素研究——基于货币激励方式与团队氛围的双重视角

本文通过实验研究的方法,研究了货币激励与团队氛围对知识型员工绩效的影响,并分析了内部动机在上述两组关系中的影响作用。研究结果表明:从货币激励的角度来看,货币激励并不一定会提高知识型员工的绩效,和固定工资相比,与绩效挂钩的薪酬有时反而不利于工作业绩的提高。从团队氛围角度来看,被试者感受到的团队氛围越浓厚,越有利于带来更高的绩效。进一步研究发现,任务绩效会随内部动机的提高而提高,并且,货币激励与团队氛围均会通过影响内部动机进而影响任务绩效。因此,当货币激励对知识型员工绩效产生负效应时,可以通过营造较好的团队氛围提高员工的内部动机进而提高其绩效水平,这为提高员工绩效提供了除货币激励外一种新的方法途径。     

Do external diversity practices boost focal firm performance? The case of supplier diversity

Based on the resource-based view, we propose that external diversity practices such as supplier diversity may affect firm performance. We find that the relationship between supplier diversity and short-term performance (i.e. productivity) is moderated by context such that firms in declining industries experience positive productivity effects while firms in munificent industries witness negative effects. For longer-term profitability (i.e. Tobin's q), we do not find support for a positive relationship between supplier diversity and long-term performance. However, positive supplier diversity effects emerge in munificent environments. Overall, in support of the strategic human resource management approach, we conclude that the effect of external supplier diversity on firm performance is contingent upon environmental munificence, which documented the necessity to include supplier diversity as a relevant component of a comprehensive diversity and equality management system.     

On discouraging environments in team contests: Evidence from top-level beach volleyball

This contribution empirically investigates the adverse effects of unbalanced competition and negative feedback in team contests in the field. Using a unique data set sourced from top-level beach volleyball, I provide evidence for discouragement effects in line with contest theory. The analysis identifies a non-linear relationship between ex ante contestant heterogeneity and performance. Overall, no gender differences can be found. Finally, it shows that age diversity in teams helps to overcome setbacks.     

The gender diversity–performance relationship in services and manufacturing organizations

Empirical findings on the link between gender diversity and performance have been inconsistent. This paper presents three competing predictions of the organizational gender diversity–performance relationship: a positive linear prediction derived from the resource-based view of the firm, a negative linear prediction derived from self-categorization and social identity theories, and an inverted U-shaped curvilinear prediction derived from the integration of the resource-based view of the firm with self-categorization and social identity theories. This paper also proposes a moderating effect of industry type (services vs. manufacturing) on the gender diversity–performance relationship. The predictions were tested in publicly listed Australian organizations using archival quantitative data with a longitudinal research design. The results show partial support for the positive linear and inverted U-shaped curvilinear predictions as well as for the proposed moderating effect of industry type. The curvilinear relationship indicates that different proportions of organizational gender diversity have different effects on organizational performance, which may be attributed to different dynamics as suggested by the resource-based view and self-categorization and social identity theories. The results help reconcile the inconsistent findings of past research that focused on the linear gender diversity–performance relationship. The findings also show that industry context can strengthen or weaken the effects of organizational gender diversity on performance.     

Exploring the performance effects of visible attribute diversity: the moderating role of span of control and organizational life cycle

Research on how cultural diversity – especially visible attributes such as race and gender – impacts organizational performance remains practically nonexistent. We examine the effect of racial diversity and gender diversity on firm performance utilizing a contingency framework. Empirical findings from a field study support the hypothesized contingent effects of an organization's structure, specifically managerial span of control, on both racial and gender diversity's pre-assumed benefits. In addition, the study highlights the role of life-cycle stage when modelling the diversity–performance relationship. Future research directions and managerial implications are discussed.     

Dealing with differences: the impact of perceived diversity outcomes on selection and assessment of minority candidates

Although many strategies have been employed to specifically recruit and select minority employees, the selection rates for designated minority groups are often lower than those for the majority group. Minority candidates with high cultural maintenance (CM) are particularly vulnerable to cultural bias in selection procedures, a process which has proved difficult to change. This paper aims to examine whether these effects may be moderated by recruiters’ perceived diversity outcomes; whether they view diversity as beneficial or threatening to the organization's performance. In an experimental study, participants belonging to a cultural majority group played the role of recruiters (n = 99). Their diversity perceptions were manipulated by asking them to think about, and discuss, either positive or negative outcomes of cultural diversity in the workplace. They were then asked to rate fictional profiles of minority candidates for a job opening. The results confirm that CM of minority candidates has a negative main effect on the ratings they receive in assessment procedures. However, as predicted, this effect is moderated by diversity perceptions. Recruiters who perceive individual differences in the workplace as positive and beneficial, give higher ratings to candidates who maintain their own culture. This provides a promising insight in possible ways to reduce cultural bias in selection procedures.     

Stimulating teachers’ team performance through team-oriented HR practices: the roles of affective team commitment and information processing

Abstract

Teams of teachers are increasingly held accountable for the quality of education and educational reforms in vocational education and training institutions. However, historically teachers have not been required to engage in deep-level collaboration, thus team-oriented HR practices are being used to promote teamworking in the sector. This paper examines the relationship between team-oriented HR practices and team performance in terms of innovation and efficiency via teachers’ affective team commitment and engagement in information processing. To examine these associations, a team-oriented HRM research instrument was developed and validated based on the ability-motivation-opportunity model (N = 970, 130 teams) and hypothesised associations were examined using multilevel structural equation modelling (N = 704, 70 teams). The results show positive relationships between the team-oriented HR practices of recruitment, team development, team evaluation and teamwork facilitation, and team innovation. Additionally, all practices except team development were positively related to team efficiency. The relationships between team-oriented HR practices and these team performance indicators were often partially or fully mediated by affective team commitment and information processing. Because affective team commitment and information processing sometimes only partially mediated the links between team-oriented HR practices and team performance, other underlying mechanisms await identification.     

重大工程高层管理团队冲突、行为整合与工程绩效研究

为揭示重大工程高管团队冲突对工程绩效的作用机理,构建了以重大工程高管团队冲突为自变量、行为整合为中介变量、工程绩效为因变量的中介模型,并通过215位高管问卷样本进行实证研究,实证结果表明重大工程高管团队任务冲突对工程绩效有显著的正向影响,关系冲突对工程绩效有显著的负向影响。合作行为和信息交换和在团队冲突和工程绩效之间存在显著的部分中介效应。     

Are multinational teams more successful?

Teams have become increasingly multinational in many sectors. The impact of national diversity on team performance is, however, controversial. On the one hand, multinational teams may have access to a greater variety of task-relevant expertise, which should increase the team performance. On the other hand, national diversity may complicate team collaboration and increase team conflict. Applying panel econometrics to 4284 team observations in a globalized sector, we find evidence that multinational teams perform worse than teams with less national diversity.