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Top Management Team Functional Diversity and Firm Performance: The Moderating Role of CEO Characteristics

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  • Tine Buyl
  • Christophe Boone
  • Walter Hendriks
  • Paul Matthyssens

Abstract

Past research indicates that the effect of TMT functional diversity on firm performance is equivocal. We address this issue by focusing on the integrative role of the CEO, postulating that the CEO's expertise and background characteristics affect the TMT functional diversity–firm performance relationship, because of their impact on the exchange and integration of distributed knowledge within the TMT. Using a dataset of 33 Dutch and Belgian Information Technology firms we investigate the moderating role of three sets of CEO characteristics (functional background, status as founder, and shared experience with the other TMT members) on the relationship between TMT functional diversity and firm performance. Our results reveal that CEO and TMT characteristics do interact in realizing the potential advantages of distributed TMT functional expertise.

Suggested Citation

  • Tine Buyl & Christophe Boone & Walter Hendriks & Paul Matthyssens, 2011. "Top Management Team Functional Diversity and Firm Performance: The Moderating Role of CEO Characteristics," Journal of Management Studies, Wiley Blackwell, vol. 48(1), pages 151-177, January.
  • Handle: RePEc:bla:jomstd:v:48:y:2011:i:1:p:151-177
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    File URL: http://hdl.handle.net/10.1111/j.1467-6486.2010.00932.x
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    Cited by:

    1. Lo, Fang-Yi & Fu, Pao-Hung, 2016. "The interaction of chief executive officer and top management team on organization performance," Journal of Business Research, Elsevier, vol. 69(6), pages 2182-2186.
    2. repec:bla:jomstd:v:54:y:2017:i:7:p:961-985 is not listed on IDEAS
    3. Céline Bérard & Séverine Saleilles, 2016. "Sustainability-driven entrepreneurship and high-growth SME: How to combine Davids’ and Goliaths’ worlds?," Post-Print halshs-01459141, HAL.
    4. Faems, Dries & Subramanian, Annapoornima M., 2013. "R&D manpower and technological performance: The impact of demographic and task-related diversity," Research Policy, Elsevier, vol. 42(9), pages 1624-1633.
    5. Tekleab, Amanuel G. & Karaca, Ayse & Quigley, Narda R. & Tsang, Eric W.K., 2016. "Re-examining the functional diversity–performance relationship: The roles of behavioral integration, team cohesion, and team learning," Journal of Business Research, Elsevier, vol. 69(9), pages 3500-3507.
    6. Cacciolatti, Luca & Lee, Soo Hee, 2016. "Revisiting the relationship between marketing capabilities and firm performance: The moderating role of market orientation, marketing strategy and organisational power," Journal of Business Research, Elsevier, vol. 69(12), pages 5597-5610.
    7. Yuan, Wenlong & Bao, Yongjian & Olson, Bradley J., 2017. "CEOs’ ambivalent interpretations, organizational market capabilities, and corporate entrepreneurship as responses to strategic issues," Journal of World Business, Elsevier, vol. 52(2), pages 312-326.
    8. Daniel Hoegele & Sascha L. Schmidt & Benno Torgler, 2016. "The importance of key celebrity characteristics for customer segmentation by age and gender: Does beauty matter in professional football?," Review of Managerial Science, Springer, vol. 10(3), pages 601-627, July.
    9. repec:kap:sbusec:v:48:y:2017:i:3:d:10.1007_s11187-016-9805-y is not listed on IDEAS

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