Top management team diversity and innovativeness: The moderating role of interfunctional coordination |
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Authors: | Seigyoung Auh Bulent Menguc |
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Institution: | Brock University, Faculty of Business, Department of Marketing, International Business, and Strategy, St. Catharines, ON, Canada L2S 3A1 |
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Abstract: | Top management team (TMT) diversity has received considerable attention in the academic literature as well as in the corporate arena. Our paper develops a contingent model on how top management team diversity acts as a form of human capital and can have a positive effect on innovativeness when it is effectively leveraged with favorable social capital. Our theoretical underpinning rests on the argument that greater interfunctional coordination is a source of internal social capital, which mitigates the costs while at the same time highlights the benefits associated with TMT diversity. By testing our model with TMT executives, the results generally supported our hypothesis in that the effect of TMT diversity on innovativeness was positive as interfunctional coordination increased. Implications for marketing theory and practice are discussed. |
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Keywords: | Diversity Top management teams Innovativeness Interfunctional coordination |
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