Research Notes and Commentaries
Top management team nationality diversity and firm performance: A multilevel study
Article first published online: 15 OCT 2012
Copyright © 2012 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 34, Issue 3, pages 373–382, March 2013
How to Cite
Nielsen, B. B. and Nielsen, S. (2013), Top management team nationality diversity and firm performance: A multilevel study. Strat. Mgmt. J., 34: 373–382. doi: 10.1002/smj.2021
- Issue published online: 22 JAN 2013
- Article first published online: 15 OCT 2012
- Accepted manuscript online: 10 SEP 2012 08:37AM EST
- Manuscript Revised: 5 SEP 2012
- Manuscript Received: 18 JUN 2009
- top management teams;
- multinational teams
This research reexamines the equivocal relationship between top management team (TMT) diversity and firm performance. Combining upper echelons theory with insights from institutional theory, we establish a new, timely dimension of TMT diversity—nationality diversity—and develop an integrated multilevel framework explaining how its performance implications vary across contextual settings. We find that nationality diversity is positively related to performance; and this effect is stronger in (a) longer tenured teams, (b) highly internationalized firms, and (c) munificent environments. More generally, our research demonstrates that the consequences of TMT diversity depend on the (1) specific attributes of diversity being considered and (2) firm and industry conditions under which strategic decisions take place. Copyright © 2012 John Wiley & Sons, Ltd.