Abstract
The current economic climate has changed the landscape of business dramatically in the perspective of global environment. Hence, in order to respond for the global changes in term of economic, social, politic and technology, organization should enhance the right mix of top management teams (TMT) for current and future progression and growth of the organization. Diversity of top management team plays an important role to determine the performance of the organization. This conceptual paper is to examine the impact of top management team diversity traits on firm performance. The study will adopt quantitative research design with secondary data, for the average of five years. Secondary data mainly involves financial data that will be obtained financial databases such as DATASTREAM based on 200 nonfinancial large companies in Malaysia. The multiple regression analysis and cross-sectional study will be used to test the hypothesis. Issues surrounding top management team’s diversity, upper echelon theories and the mixed findings from previous research are offered as potential avenues for empirical research. Therefore, the line of inquiries needs a fundamental work and empirical analysis using above methodology. The preliminary results leading toward for a better understanding of the factor that explains how top management diversity translates into greater organizational achievements and argues the need to analyse the characteristics of top management teams and their composition more extensively, especially in the context of large companies. This is a cross-sectional study, variables, concepts, constructs and hypotheses will be carefully constructed and developed to meet the objectives of the study. Multivariate analyses will be adopted, and in this regard, panel data analyses using the E- VIEW/STATA statistical software will be used to suit the requirement of considering both crosssectional and time series data in the analyses.
Highlights
Top management team diversity has become an essential tool that creates a competitive edge in today’s corporate world
Diversity of top management teams can be referring to demography factors such as gender, age, tenure, experiences, educational level, race, religion, styles and values which will impact on the decision-making process
The mixed results on the outcomes, has opened the path to researcher to further explore diversity traits until it comes to a solid conclusion and close the gap that exists which can help the corporate world to identify the right mixture of diversity of top management team, how it converts to strategic choice and impact on firm performance
Summary
Top management team diversity has become an essential tool that creates a competitive edge in today’s corporate world. Diversity of top management teams can be referring to demography factors such as gender, age, tenure, experiences, educational level, race, religion, styles and values which will impact on the decision-making process. This concept is concluded broadly by pioneer scholarly with the introduction of Upper Echelon theory (1984). Randel & Jaussi, 2003); (Zhang, Lowry, Zhou, & Fu, 2007)) On another glance of result, few scholarly concluded negative impact of top management team diversity on firm performance (Williams & O'Reilly III, 1998); (Goll, Sambharya, & Tucci, 2001); (Berman, West, & Richter Jr, 2002) ;(Mello & Ruckes, 2006) ;(Polzer, Caruso, & Brief, 2008). This study will go in line with the inquiry of upper echelon characteristics with the latest update on potential impact of diversity traits on corporate performance with consideration of global diversity and cultural changes as well
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
