The Effect of Top-management Team Heterogeneity on Performance in Institutions of Higher Education

Abstract

ABSTRACTEmpirical studies aiming to test theories connecting management to organizational performance in public administration have generally focused on a single executive at the apex of the organization. Yet organizations are increasingly governed by top-management teams (TMTs) composed of two or more individuals. In these team settings, managers have varying levels and types of previous experience, education, and socialization, and these backgrounds and skill sets can lead managers to hold different values that affect decision-making processes and, consequently, organizational performance. Whether higher levels of heterogeneity are linked to variation in outcomes, however, is debated and has rarely been examined in the context of large public bureaucracies. Using data on university presidents and provosts in U.S. higher education, this study finds that heterogeneity in top-management teams does affect performance indicators for some, but not all, goals of access, affordability, and quality.