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Strategic consensus, top management teams, and innovation performance

Author

Listed:
  • Carmen Camelo
  • Mariluz Fernández‐Alles
  • Ana B. Hernández

Abstract

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.

Suggested Citation

  • Carmen Camelo & Mariluz Fernández‐Alles & Ana B. Hernández, 2010. "Strategic consensus, top management teams, and innovation performance," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(6), pages 678-695, September.
    • Handle: RePEc:eme:ijmpps:v:31:y:2010:i:6:p:678-695
    DOI: 10.1108/01437721011073373
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    References listed on IDEAS

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    Cited by:

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    2. Marieta Olaru & Vasile Dinu & Timo Keppler & Bogdan Mocan, 2015. "Study on the Open Innovation Practices in Romanian Smes," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(S9), pages 1129-1129, November.
    3. Ya You & Shuba Srinivasan & Koen Pauwels & Amit Joshi, 2020. "How CEO/CMO characteristics affect innovation and stock returns: findings and future directions," Journal of the Academy of Marketing Science, Springer, vol. 48(6), pages 1229-1253, November.
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    5. Syed Zulfiqar Ali Shah & Muhammad Anwar & Ch. Mazhar Hussain, 2021. "Top managers' attributes, innovation, and the participation in China–Pakistan Economic Corridor: A study of energy sector small and medium‐sized enterprises," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 385-406, March.
    6. Yuan, Yue, 2023. "Executive team heterogeneity and the moral hazard of equity pledging: Evidence from China," Finance Research Letters, Elsevier, vol. 52(C).
    7. Tomasz Sosnowski & Anna Wawryszuk-Misztal, 2019. "Diversity on management and supervisory board and accuracy of management earnings forecasts in IPO prospectuses," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(3), pages 347-363, September.

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