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Strategic consensus, top management teams, and innovation performance

Listed author(s):
  • Carmen Camelo
Registered author(s):

    Purpose - The purpose of this paper is to analyze how the educational level and diversity of a firm's top management team (TMT), moderated by strategic consensus, influence its innovation performance. Design/methodology/approach - Using Poisson regression analysis, the proposed models were tested on 97 innovative Spanish firms selected from the Dun and Bradstreet database of 2000. Findings - Results show that a higher educational level in the TMT has a positive and direct effect on innovation performance, while functional diversity and diversity in TMT tenure have a direct and negative effect. However, in a situation of strategic consensus in the TMT, the relationship between functional diversity and innovation is positive. Originality/value - The paper makes several contributions to previous research. First, few studies have considered the influence of the characteristics and composition of the TMT on the organization's innovation performance. Second, this paper responds to the calls of researchers to enrich the upper echelon theory by considering strategic consensus as a process of interaction between the members of the TMT that modifies the relationship between TMT diversity and the firm's innovation performance.

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    Article provided by Emerald Group Publishing in its journal International Journal of Manpower.

    Volume (Year): 31 (2010)
    Issue (Month): 6 (September)
    Pages: 678-695

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    Handle: RePEc:eme:ijmpps:v:31:y:2010:i:6:p:678-695
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    1. Ed Clark & Anna Soulsby, 2007. "Understanding Top Management and Organizational Change Through Demographic and Processual Analysis," Journal of Management Studies, Wiley Blackwell, vol. 44(6), pages 932-954, 09.
    2. Rapert, Molly Inhofe & Velliquette, Anne & Garretson, Judith A., 2002. "The strategic implementation process: evoking strategic consensus through communication," Journal of Business Research, Elsevier, vol. 55(4), pages 301-310, April.
    3. John E. Ettlie & William P. Bridges & Robert D. O'Keefe, 1984. "Organization Strategy and Structural Differences for Radical Versus Incremental Innovation," Management Science, INFORMS, vol. 30(6), pages 682-695, June.
    4. Coombs, R. & Narandren, P. & Richards, A., 1996. "A literature-based innovation output indicator," Research Policy, Elsevier, vol. 25(3), pages 403-413, May.
    5. Guoquan Chen & Dean Tjosvold & Chunhong Liu, 2006. "Cooperative Goals, Leader People and Productivity Values: Their Contribution to Top Management Teams in China," Journal of Management Studies, Wiley Blackwell, vol. 43(5), pages 1177-1200, 07.
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