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Top management team diversity, individualism–collectivism, and MNE performance

Bibliographic Data

ID12701557
AuthorsAdrian Gil (Howard Payne University), Lance Eliot Brouthers (Kennesaw State University), Dawn L Keig (0000-0003-0428-4170, Whitworth University, corresponding author)
Year2019
Volume19
Issue3
Pages273-290
Publication date2019-08-28
Open AccessYes
TypeARTICLE
VenueInternational Journal of Cross Cultural Management (JOURNAL)
Journal identifiersISSN: 1470-5958 • E-ISSN: 1741-2838
PublisherSAGE Publishing (PUBLISHER • US)
DOI10.1177/1470595819870819
OpenAlexW2970912023
LanguageEN
Citations received4
References cited71

Existing theories of diversity typically focus on a limited range of usually American research settings and on a relatively narrow range of types of diversity. Here, we examine a less commonly used measure of diversity, top management team (TMT) functional diversity, for a sample of non-US multinational enterprises (MNEs) from a cross-cultural perspective. We theorize and empirically test the notion that the individualism–collectivism dimension of national culture moderates the relationship between TMT diversity (measured by functional heterogeneity) and firm performance such that greater functional diversity among TMTs in collectivistic national cultures improves firm performance, while greater functional diversity among TMTs in individualistic national cultures weakens MNE performance. Our empirical results based on a sample of MNEs from 25 countries support our hypotheses. The relationship between TMT functional heterogeneity and firm performance is strongly negative in highly individualistic national cultures but positive in collectivistic national cultures. Managerial implications, limitations, and future research directions are discussed

Business · Collectivism · Cultural diversity · Diversity (politics · Economic geography · Economics · Empirical research · Hofstede's cultural dimensions theory · Individualism · Multinational corporation · Perspective (graphical · Political science · Sample (material · Sociology · Corporate Finance and Governance · Family Business Performance and Succession · Gender Diversity and Inequality · Psychology · Social Psychology

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Citations per year0.8
Citation span2021 - 2026 (6)
Highly citedNo

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