A configurational perspective on subsidiary top management team national diversity and performance

Abstract

PurposeThe purpose of this paper is to investigate what role national top management team diversity (TMTD) plays in foreign-owned subsidiary performance. The authors develop a conceptual framework based on the asset bundling model and the neo-configurational perspective to argue that the impact of TMTD on subsidiary performance depends on its conjunction with other assets.Design/methodology/approachThe authors test our framework on a sample of subsidiaries located in the emerging economies of Thailand and Taiwan. The authors utilise structural equation modelling and fuzzy set qualitative comparative analysis techniques.FindingsThe results indicate that TMTD can contribute and hurt subsidiary performance depending on its bundling with other assets such as organisational network strength, competencies, as well as regional and cultural differences between the home and host country.Originality/valueThis is one of the first studies to empirically test the asset bundling model in the context of national TMTD in foreign-owned subsidiaries using a configurational approach.