Top management team diversity, group process, and strategic consensus

Top management team diversity, group process, and strategic consensus This study integrated concepts from upper echelons, group process and social cognition theories to investigate how demographic diversity and group processes influence strategic consensus within the top management team (TMT), where strategic consensus is defined as the degree to which individual mental models of strategy overlap. Data from 76 high‐technology firms in the United States and Ireland were used to examine three alternative models. The results showed that while demographic diversity alone did have effects on strategic consensus the overall fit of the model was not strong. Adding two intervening group process variables, interpersonal conflict and agreement‐seeking, to the model greatly improved the overall relationship with strategic consensus. For the most part, TMT diversity had negative effects on strategic consensus. The model with superior fit showed both direct and indirect effects of diversity on strategic consensus. Copyright © 1999 John Wiley & Sons, Ltd. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Management Journal Wiley

Top management team diversity, group process, and strategic consensus

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Publisher
Wiley
Copyright
Copyright © 1998 John Wiley & Sons, Ltd.
ISSN
0143-2095
eISSN
1097-0266
DOI
10.1002/(SICI)1097-0266(199905)20:5<445::AID-SMJ27>3.0.CO;2-V
Publisher site
See Article on Publisher Site

Abstract

This study integrated concepts from upper echelons, group process and social cognition theories to investigate how demographic diversity and group processes influence strategic consensus within the top management team (TMT), where strategic consensus is defined as the degree to which individual mental models of strategy overlap. Data from 76 high‐technology firms in the United States and Ireland were used to examine three alternative models. The results showed that while demographic diversity alone did have effects on strategic consensus the overall fit of the model was not strong. Adding two intervening group process variables, interpersonal conflict and agreement‐seeking, to the model greatly improved the overall relationship with strategic consensus. For the most part, TMT diversity had negative effects on strategic consensus. The model with superior fit showed both direct and indirect effects of diversity on strategic consensus. Copyright © 1999 John Wiley & Sons, Ltd.

Journal

Strategic Management JournalWiley

Published: May 1, 1999

References

  • Performance and consensus
    Bourgeois, Bourgeois
  • Expertise and problem categorization: The role of expert processing in organizational sense‐making
    Day, Day; Lord, Lord
  • Consensus on strategy formulation and organizational performance: Competitors in a fragmented industry
    Dess, Dess
  • Management and organizational change: A note on the railroad industry
    Grimm, Grimm; Smith, Smith
  • Strategic decision models: Integrating different perspectives
    Hitt, Hitt; Tyler, Tyler
  • Formulating strategic problems: Empirical analysis and model development
    Lyles, Lyles
  • The top management team and corporate performance
    Norburn, Norburn; Birley, Birley
  • The dominant logic: A new linkage between diversity and performance
    Prahalad, Prahalad; Bettis, Bettis
  • Top management team group factors, consensus, and firm performance
    Priem, Priem
  • Top management team strategic consensus, demographic homogeneity and firm performance: A report of resounding nonfindings
    West, West; Schwenk, Schwenk

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