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The impact of TMT diversity on corporate restructuring activities

Author

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  • Kirkland, Christine Madonna
  • Keltner, Hillary C.
  • Zheng, Xin (Michelle)

Abstract

Diversity within the top management team (TMT) plays a critical role in driving successful corporate restructuring, yet its full potential often goes unrecognized. This article provides a practical review of how TMT diversity—categorized into job-related dimensions (e.g., tenure, education, experience) and nonjob-related dimensions (e.g., gender, age, culture)—impacts key restructuring activities such as mergers and acquisitions (M&As), alliances, divestitures, strategic change, and research and development (R&D). We identify three benefits of TMT diversity in organizations: it improves decision-making, fosters creativity and innovation, and enhances risk management and strategic alignment. By synthesizing insights from the latest research, we offer actionable guidance for managers to leverage TMT diversity to create value through more effective restructuring strategies. This article underscores the importance of recognizing diversity as a strategic asset in navigating complex corporate changes.

Suggested Citation

  • Kirkland, Christine Madonna & Keltner, Hillary C. & Zheng, Xin (Michelle), 2026. "The impact of TMT diversity on corporate restructuring activities," Business Horizons, Elsevier, vol. 69(2), pages 147-159.
  • Handle: RePEc:eee:bushor:v:69:y:2026:i:2:p:147-159
    DOI: 10.1016/j.bushor.2025.11.002
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