EFFECT OF TOP MANAGEMENT TEAM DIVERSITY ON FMCGs' PERFORMANCE

Abstract

This study examined the effect of top management team diversity (captured by top management cultural diversity and top management gender diversity) on fast-moving consumer goods (FMCGs) performance. The study employed a survey design by administering a structured questionnaire to 520 FMCG employees of FMCGs. The research instrument (questionnaire) was administered to the targeted respondents in January 2023. The study employed a linear regression model with STATA version 14 software. The findings reveal that top management cultural diversity and top management gender diversity have positive and significant individual effects on FMCGs performance, with coefficients and probability values of β1 =0.342, P-value < 0.0s, and β2 =0.594, P-value < 0.05. The adjusted coefficient of determination (Adjusted R2) suggested that 46.1% variation in FMCGs performance is accounted for by top management team diversity elements (top management cultural diversity and top management gender diversity). Therefore, it can be concluded that top management team diversity (top management cultural diversity and top management gender diversity) significantly positively affect the performance of FMCGs. Therefore, the performance of FMCGs is determined by their level of diversity, particularly their top management's cultural diversity and top management's gender diversity. In line with the findings of this study, the following recommendations are made: FMCGs should encourage top management cultural diversity through the engagement of top managers from diverse cultural orientations, as this tends to enhance their performance. Additionally, FMCGs should encourage top management gender diversity through the engagement of top managers from diverse gender, as this tends to enhance their performance. Furthermore, the Manufacturers Association of Nigeria and government agencies should encourage diversity among FMCGs.