Research Policy 48 (2019) 1681–1693

Contents lists available at ScienceDirect

Research Policy
journal homepage: www.elsevier.com/locate/respol

Gender diversity in senior management, strategic change, and firm T

performance: Examining the mediating nature of strategic change in high
tech firms
María del Carmen Trianaa,1, Orlando C. Richardb,1, Weichieh Suc,
⁎

a
The University of Wisconsin – Madison, Wisconsin School of Business, 975 University Avenue, Madison, WI, 53706, United States
b
The University of Texas at Dallas, Jindal School of Management, Box 830688, SM 43, Richardson, TX, 75083, United States
c
National Chengchi University, College of Commerce, Department of International Business, 64 Sec 2 Zhinan Rd, Taipei, 11605, Taiwan

ARTICLE INFO ABSTRACT

Keywords: Only recently have enough women joined senior leadership positions in high tech firms for research on senior
Senior management gender diversity management gender diversity in high tech industries to be possible. We propose that senior management gender
Upper echelons theory diversity fosters strategic change in high tech firms, especially under conditions where alliance formation in-
Strategic change tensity and top management team (TMT) educational background diversity are high, because the breadth of
High tech
opportunity and knowledge associated with these conditions facilitates implementation of new ideas. Results
Computer industries
Organizational learning
show that both inter-organizational strategic alliance formation intensity and TMT educational background
diversity positively moderate the relationship between senior management gender diversity and strategic
change. We also find support for a moderated mediation model whereby a gender-diverse senior management
positively impacts strategic change, which ultimately improves firm performance when the firm exhibits high
alliance formation intensity and has a TMT that is diverse across educational background.

1. Introduction U.S. ranked 45 worldwide in gender equality for 2016 but dropped to
49 in 2017 and 51 in 2018 signaling that gender issues are a major issue
Only in the last few decades have companies made progress in impacting society (World Economic Forum, 2016, 2017, 2018) and are
cracking the glass ceiling–an invisible barrier that prevents women worthy of investigation.
from rising to executive management (Maume, 2004). Moreover, only Because organizations have not had a critical mass of women in top
recently have there been enough women in top leadership positions to management teams (TMTs) (Andrevski et al., 2014; Hoobler et al.,
study senior management gender diversity. According to Catalyst 2009, 2018), research related to the effects of gender diversity have
(2018), women comprise 44.7% of employees in the Standard & Poor’s mostly been limited to investigations of the overall management corps
500 and 36.9% of first- and mid-level managers, but shrink to 26.5% of (Dwyer et al., 2003; Richard et al., 2004, 2013), with a few instances
senior-level managers, 21.2% of board directors, and only 5.2% of chief focusing on the top management team (TMT) (e.g., Ruiz-Jimenez and
executive officers (CEOs). Although women have made some gains in Fuentes-Fuentes, 2016). Previous research has limited implications as it
leadership roles over the past few decades (Echeverri-Carroll et al., leaves out the reporting level one step removed from the chief executive
2018), they are often underrepresented in leadership generally and officer (CEO) which also contributes to strategic decision-making.
within the high tech industry specifically (Catalyst, 2018). These sta- Based on upper echelons theory (Hambrick and Mason, 1984), but
tistics allude to persistent barriers that women face in the United States expanding beyond the top five highest paid executives where women
(U.S.). For example, the World Economic Forum publishes a yearly have not achieved notable representation (Gilgoff, 2009; Toegel, 2011),
Global Gender Gap Report ranking 144 countries in the world in order this study focuses on senior management gender diversity (of in-
(with 1 being the best) of how equally women are treated compared to dividuals within two reporting levels of the CEO) where strategy for-
men with respect to economic participation and opportunity, educa- mulation broadly occurs (Alexiev et al., 2010).
tional attainment, health and survival, and political empowerment. The Previous research has investigated the upper echelons by focusing

⁎
Corresponding author at: National Chengchi University, Department of International Business, 64 Sec 2 Zhinan Rd, Taipei, 11605, Taiwan.
E-mail addresses: [email protected] (M. Triana), [email protected] (O.C. Richard), [email protected] (W. Su).
1
Denotes equal authorship.

https://doi.org/10.1016/j.respol.2019.03.013
Received 23 August 2018; Received in revised form 14 March 2019; Accepted 17 March 2019
Available online 26 April 2019
0048-7333/ © 2019 Elsevier B.V. All rights reserved.
M. Triana, et al. Research Policy 48 (2019) 1681–1693

on the CEO, the TMT, or other senior managers to examine their roles in Furthermore, we propose that TMT knowledge could play an im-
devising strategy (Bromiley and Rau, 2016). We feel that taking a portant role in utilizing the perspectives embedded within a gender-
subset approach to investigate only parts of senior management lacks diverse senior management. This logic is consistent with the business
face validity, as all of these high-level executives direct strategy to- case for diversity presented by Thomas and Ely (1996) and Lozano and
gether. In fact, previous research has called for the inclusion of all key Escrich (2017), which describes that diversity should help business
players in the strategy formulation process when attempting to study performance by enhancing knowledge, flexibility, creativity, and deci-
strategic decision-making (Heyden et al., 2017; Ling et al., 2008; sion-making. Specifically, we examine whether TMT educational
Rutherford, 2016). For instance, firms offer managerial discretion to background diversity positively moderates the senior management
divisional directors who engage in strategic decision-making together gender diversity to strategic change relationship. The present study
with the CEO and TMT. The present study makes a contribution to the focuses on educational background because one’s training represents
upper echelons literature by testing strategic change in the context of knowledge brought to group decision-making. If a TMT is diverse in its
gender diversity in a comprehensive senior management group. educational background, it is more likely to consider, understand, and
We answer a question that has implications for academics and utilize a broad range of ideas generated by senior management, in-
managers: What is the strategic change and financial impact of gender cluding ideas from women that might otherwise be underutilized (e.g.,
diversity in the upper echelons? We exclude middle- and lower-level Kanter, 1977; Ridgeway, 2011; Zelechowski and Bilimoria, 2003). In
managers from our examination, as they are historically part of strategy accounting for both moderators (i.e., alliance formation intensity and
implementation rather than formulation (Burgelman, 1983) and stra- TMT educational background diversity), this study makes strides in
tegic change emanates from senior level decision-making (Finkelstein opening the black box to test intervening variables (Lawrence, 1997)
and Hambrick, 1990). Following prior research, strategic change is that link characteristics of the upper echelons to firm outcomes
defined as the extent to which a firm changes its resource allocations in (Hambrick, 2007). We examine under what conditions gender diversity
key strategic dimensions to maintain a competitive advantage (Hofer in senior management impacts firm performance by either bolstering or
and Schendel, 1978; Miller, 1991; Oehmichen et al., 2017; van de ven impeding strategic change (Blanco-Oliver et al., 2018), a question that
and Poole, 2005; Zhang, 2006). should be fully understood as corporations observe more gender di-
According to upper echelons theory, the characteristics of senior versity in senior management (Hoobler et al., 2018; Rutherford, 2016).
management predict organizational outcomes such as firm innovation The present study makes several contributions. First, this study
and overall organizational effectiveness (Bantel and Jackson, 1989; examines senior management gender diversity which is not fully un-
Hambrick et al., 1996; Hambrick and Mason, 1984; Ruiz-Jimenez and derstood (Ruiz-Jimenez and Fuentes-Fuentes, 2016). Second, this study
Fuentes-Fuentes, 2016). Although the role of gender is not explicitly tests strategic change as a mediating mechanism (Blanco-Oliver et al.,
ignored in upper echelons theory, most papers using this theory focus 2018) while simultaneously testing both alliance formation intensity
on top management teams without making distinctions between gen- and TMT educational background diversity as moderators. Third, em-
ders and thus ignore gender dynamics within TMTs and the associated pirically we go beyond cross-sectional research that has been common
implications for strategic change. Indeed, we see this as a missing point in the upper echelons and work group diversity literatures by using a
of inquiry within the upper echelons literature. Furthermore, because longitudinal design to better assess causality. While recent studies
some scholars argue that not all types of group characteristics should be employ panel data in longitudinal designs, they continue to only ex-
treated the same way and that surface-level diversity, such as gender, amine main effects and moderators (e.g., Heyden et al., 2017; Opstrup
may have disadvantageous effects on organizational outcomes (Pelled, and Villadsen, 2014). Also, designs that introduce mediation still rely
1996; Pelled et al., 1999), we believe it is important to develop a fra- on cross-sectional analyses (e.g., Blanco-Oliver et al., 2018). The pre-
mework around gender. Surface-level diversity, such as gender, can sent study offers a longitudinal research design with a lag between the
trigger both detrimental group outcomes such as conflict (Jehn et al., independent variable (time 1) and mediator (time 2) and dependent
1999) and lower cohesion (Webber and Donahue, 2001) as well as variable (time 3).
beneficial outcomes such as creativity, improved problem-solving, and Theoretically, this study is important, because the business case for
superior decision-making (Milliken and Martins, 1996; van diversity has been questioned due to mixed findings (Kochan et al.,
Knippenberg and Schippers, 2007; Williams and O’Reilly, 1998). Given 2003) while the ethical case for diversity has been championed (Pless
the mixed findings about the effects of gender diversity on organiza- and Maak, 2004; Reimer et al., 2018; Rabl et al., 2018). This study also
tional outcomes in the general literature (Joshi and Roh, 2009; van sheds light on when the characteristics of a diverse senior management
Knippenberg et al., 2004), this study examines these phenomena in the team lead to firm performance. This has implications for organizations
upper echelons of management, where knowledge sharing and dis- by demonstrating that providing equal opportunity for men and women
semination are critical (Hambrick, 2007). Since gender diversity in to advance (Pless and Maak, 2004) and enhancing business results can
upper management still represents a rare knowledge-based resource be one in the same. Like Ruiz-Jimenez and Fuentes-Fuentes (2016), we
(Jeong and Harrison, 2017; Richard et al., 2013), we assess contexts test our hypotheses in the technology industries to understand the fi-
where senior management gender diversity increases or reduces stra- nancial impact that companies can realize when they crack their
tegic change. gender-based glass ceiling.
For example, the present study examines whether inter-organiza-
tional strategic alliance formation positively moderates the impact that 2. Theory and hypotheses
senior management gender diversity has on strategic change in high
tech industries. Strategic alliances have been suggested as a platform 2.1. Senior management gender diversity and its effect on strategic change
for organizational learning where firms explore or exploit knowledge
from an alliance partner (Inkpen and Tsang, 2007; Lavie and This research differs from scholarship that focuses solely on the
Rosenkopf, 2006; Rothaermel and Deeds, 2004). Because demographics TMT since we include all individuals within two reporting levels of the
(e.g., gender diversity) can be related to harmful processes such as CEO who interact directly with the CEO to help shape strategy. Some
conflict and to performance decreases rather than gains (Nishii, 2013; studies on TMTs in U.S. public firms define the TMT as the top five
Richard et al., 2013), a firm with an external learning orientation could highest paid executives because the Securities and Exchange
be receptive to a senior management corps possessing gender-based Commission requires firms to report information on these executives
knowledge. Thus, it is critical to understand how strategic alliance and those data are readily available (e.g., Carpenter and Sanders, 2002;
formation intensity moderates the relationship between senior man- Dezsö and Ross, 2012). However, other studies have defined the TMT
agement gender diversity and strategic change. broadly to include executives holding senior offices such as senior vice

1682
M. Triana, et al. Research Policy 48 (2019) 1681–1693

presidents (Carpenter et al., 2004). These high-level managers interact that transforms diversity into a source of information and decision-
not only with the CEO but also with others among the top five highest making advantage (Bromiley and Rau, 2016; Lyngsie and Foss, 2017;
paid executives and definitively influence the formulation of strategy. Richard et al., 2013; Zhang et al., 2018), there are reasons to expect
Thus, we follow the latter definition. that gender diversity among senior management could positively im-
Scholars have theorized that diversity should benefit organizations pact, negatively impact, or have no impact on strategic change (Triana
if it facilitates a broad range of perspectives from which teams can et al., 2014). Next, we discuss the moderators of the relationship be-
make better choices (e.g., Cox and Blake, 1991; Heavey and Simsek, tween senior management gender diversity and strategic change, and
2017; Lozano and Escrich, 2017; Richard et al., 2007; Thomas and Ely, we formulate hypotheses.
1996). One such decision-making process that senior management
teams engage in is strategic change. Strategic change is a problem- 2.2. The moderating role of alliance formation intensity
solving process (Hofer and Schendel, 1978; Oehmichen et al., 2017),
and we expect that a diverse senior management group will exhibit Diversity scholars have called for research going beyond main ef-
dynamics like those of other diverse groups when implementing stra- fects and investigating contingency factors that explain when knowl-
tegic change (Kozlowski and Bell, 2003; Nakauchi and Wiersema, edge from demographic diversity is more likely to be used, including by
2015). We acknowledge that the senior management cadre of an or- the upper echelons (Bromiley and Rau, 2016; Hambrick et al., 1996;
ganization is larger in size compared to TMTs, boards of directors, or Joshi and Roh, 2009; Nishii, 2013; Pieterse et al., 2013; Richard et al.,
other types of lower-level teams. Therefore, we draw from literature 2007; van Knippenberg and Schippers, 2007). In line with upper
examining diversity on TMTs (Lyngsie and Foss, 2017), boards of di- echelons theory and gender diversity literature, we propose that gender
rectors (Triana et al., 2014), other teams/groups (Jehn et al., 1999; diversity represents a knowledge-based resource within a firm (Dwyer
Nishii, 2013; Van Knippenberg et al., 2004), and organizational di- et al., 2003; Goncalo et al., 2015). However, there is evidence that
versity (Richard et al., 2007) to develop a complete picture of the dy- management-level gender diversity impacts firm performance both
namics that can emerge from senior management diversity. Senior positively and negatively depending upon the organizational context
management would be considered a specialized type of group because (Dezsö and Ross, 2012; Parola et al., 2015; Richard et al., 2013, 2004).
its members are interdependent and they share common goals (Forbes We offer two important contingencies, alliance formation intensity
and Milliken, 1999; Kozlowski and Bell, 2003). and TMT educational background diversity, as moderators of the senior
Research on diverse groups describes the double-edged nature of management gender diversity to strategic change relationship. Strategic
diversity, meaning that sometimes it is helpful and other times it is not alliances represent a mechanism for organizational learning because
(Mannix and Neale, 2005; Milliken and Martins, 1996; Nishii, 2013). alliances provide a direct interface for participating parties to observe
For instance, diverse groups can generate a broad set of ideas and in- exchanges and absorb knowledge from each other (Inkpen and Tsang,
formation since they represent a diverse body of perspectives and 2007; Koza and Lewin, 2000). The nature of organizational learning
knowledge (Amason and Sapienza, 1997; Heavey and Simsek, 2017; through alliances can be further divided into exploration and ex-
Milliken and Vollrath, 1991; Robinson and Dechant, 1997; Schweiger ploitation (March, 1991; Rothaermel and Deeds, 2004). Koza and Lewin
et al., 1996). However, diversity can also impede group decision- (2000) explain that the intent of exploration alliances involves learning
making (Miller et al., 1998; Tanikawa et al., 2017) because it may new insights and unknown technologies while the purpose of ex-
generate relationship conflict (Jehn et al., 1997; Joshi et al., 2011; ploitation alliances is to enhance revenue by combining specific assets
Mintzberg, 1983) and cause difficulty in decision-making (Goodstein unique to each alliance partner. Both types of alliances result in orga-
et al., 1994; Joshi and Roh, 2009). nizational learning, thus we focus on overall alliance formation in-
Research on the upper echelons suggests that senior management tensity.
diversity may hinder strategic change. Miller et al. (1998) reported that Organizational learning is a source of competitive advantage and
executives’ cognitive diversity inhibited long-term planning rather than positively relates to firm performance both theoretically (Blettner et al.,
promoting it. Because diversity resulted in divergent opinions, execu- 2015; Chadwick and Raver, 2015; Martinez-Costa and Jimenez-
tives were more prone to disagree and have difficulty reaching deci- Jimenez, 2009) and empirically (Jiang and Li, 2008). For example,
sions, which reduced their ability to catalyze change (Miller et al., Martinez-Costa and Jimenez-Jimenez (2009) suggest that organiza-
1998). This is in accord with reviews of the group diversity literature tional learning increases the likelihood that firms can sense trends in
which demonstrate that surface-level diversity, such as gender di- the environment which will improve market share. We propose that if a
versity, can reduce group cohesion and cooperation, increase conflict, firm is equipped to learn externally through alliance learning as well as
and ultimately result in slower decision-making and a more difficult internally through a gender-diverse senior management, the firm will
process (Joshi and Roh, 2009; Van Knippenberg et al., 2004; Webber possess superior knowledge-based advantages. Thus, this study tests the
and Donahue, 2001; Williams and O’Reilly, 1998). We posit that similar joint effects of strategic alliance intensity and gender diversity in senior
dynamics can operate within a gender-diverse senior management. management on firm performance through strategic change.
However, research over five decades has also shown that diverse Upper echelons theory predicts that managers’ demographic char-
groups can generate more creative solutions compared to homogenous acteristics are associated with cognition and preferences (Hambrick and
groups (Jackson, 1992; Joshi et al., 2011; Triandis et al., 1965). Yet, Mason, 1984). Although research has shown that diverse work groups
this diversity of information comes at a cost because the decision- embrace new ideas and search for new alternatives (Cox and Blake,
making process will take longer when more perspectives are re- 1991; Joshi and Roh, 2009; Nielsen and Nielsen, 2013), firms that have
presented. This might explain why some research finds that it takes formed exploration and/or exploitation alliances should be well-posi-
diverse teams more time than homogeneous teams before they match tioned to execute strategic changes when they have a gender-diverse
and ultimately surpass the performance levels of homogenous teams senior management with knowledge to convert such alliance activities
(Watson et al., 1993). The volume of information and number of per- into a competitive advantage. Therefore, senior management gender
spectives considered by a gender-diverse senior management may slow diversity should have a positive impact on strategic change for orga-
the group’s ability to reach decisions, which could reduce the amount of nizations that have initiated strategic alliances. In other words, we
strategic change such a group could initiate (Triana et al., 2014; propose that it would be most evident for senior management diversity
Quintana-Garcia and Benavides-Velasco, 2016). Nevertheless, in- to positively impact levels of strategic change in firms that have formed
formation can also enhance the quantity of viable ideas which may an abundance of strategic alliances, because this external knowledge
result in more strategic changes (Lyngsie and Foss, 2017). Current and these commitments to alliance partners provide them with the
scholarship ultimately suggests that absent a moderating mechanism ability and motivation to initiate more strategic change consistent with

1683
M. Triana, et al. Research Policy 48 (2019) 1681–1693

their gender-diverse senior management knowledge base. Furthermore, gender diversity and strategic change, because the TMT will have the
in the presence of intense alliance learning, we propose that the gender- knowledge to process and be receptive to a variety of ideas and per-
specific characteristics of senior managers have more opportunity to spectives from a gender-diverse senior management. Such a dynamic
make a beneficial difference. Without strong organizational learning can also encourage a gender-diverse senior management group to
externally, we expect senior management gender diversity to remain a communicate more ideas to the TMT, thereby facilitating more strategic
capability that is not fully exploited, resulting in less strategic change. change. This is consistent with research showing that employee feelings
The following hypothesis is posited: of social inclusion are positively and significantly associated with par-
ticipation, idea contribution, and job performance (Pearce and Randel,
Hypothesis 1. The relationship between senior management gender
2004; Triana et al., 2012). When TMT educational background diversity
diversity and strategic change is moderated by a firm’s alliance formation
is low, that is less likely to be the case and the TMT will be less able to
intensity. The relationship between senior management gender diversity and
absorb new information from a gender-diverse senior management
strategic change is positive (negative) for organizations with more (less)
because they have less knowledge and information processing capacity
alliance formation intensity.
themselves. This could also make a gender-diverse senior management
Next, we discuss TMT educational background diversity as a mod- less willing to offer new information to the TMT, which facilitates fewer
erating factor. strategic changes. We offer the following hypothesis.
Hypothesis 2. The relationship between senior management gender
2.3. The moderating role of TMT educational background diversity
diversity and strategic change is moderated by TMT educational
background diversity. The relationship between senior management gender
The next prediction is that a gender-diverse senior management
diversity and strategic change is positive (negative) for firms with TMT
representing a variety of perspectives will most likely lead to strategic
educational background diversity (homogeneity).
change when the TMT that interacts with them is diverse with respect
to educational backgrounds. Education represents knowledge and the
ability to understand and use information while TMT educational 2.4. Strategic change as a mediating mechanism
background reflects a broader range of skills and information sources
used for strategic decision-making (Joshi et al., 2011; Williams and Diversity is a human resource that may confer a competitive ad-
O’Reilly, 1998). Having a variety of educational backgrounds re- vantage (Ely et al., 2012), yet one of the uncertainties in the upper
presented in a TMT should maximize the chances that the TMT will echelons literature that remains is by what processes do diverse man-
solicit knowledge and be able to process and assimilate information agers impact firm performance (Hambrick, 2007). Research has relied
from the many different perspectives they encounter among a gender- on cross-sectional designs and methodological issues that limit con-
diverse senior management group. A TMT with different educational fidence in the findings (Murray, 1989), suggesting that scholarship
backgrounds can enact routines that allow for the knowledge embedded must adopt more robust research designs (Plümper and Troeger, 2007)
in a gender-diverse senior management group to be more fully utilized to account for mediating processes and explain mechanisms by which
because they embrace strategic thinking (Finkelstein and Hambrick, executive demography impacts firm performance. Consistent with re-
1996). cent research that considers mediating factors (Blanco-Oliver et al.,
Research shows that educational diversity in TMTs is most valuable 2018), we propose that strategic change is one mechanism by which the
in facilitating organizational success when the environment is complex. effect of senior management gender diversity is transmitted to firm
For example, Carpenter and Fredrickson (2001) found that TMT edu- performance. Strategic change involves allocating firm resources in a
cational diversity predicted firm global strategic posture, particularly way that will provide a competitive advantage in the future (Nakauchi
under conditions of environmental uncertainty. That study provided and Wiersema, 2015). For example, a company may invest in adver-
evidence that educational diversity is most likely to facilitate strategic tising, research and development, or equipment (Triana et al., 2014) to
actions that lead to firm success when there is some amount of com- adjust its capacity to meet the future demands of consumers. These
plexity in the environment. However, we offer an important caveat that changes may pay off in the long-term because investors may react well
has not been considered before. Instead of focusing on the external and see promise in the firm’s strategic actions. Consumers may also
environment’s complexity, we consider the internal environment in respond well to changes that better meet their demands, thereby voting
terms of the complexity of the human capital pool from which the TMT with their purchasing power and allowing the firm to make up the costs
may draw. We propose that a gender-diverse senior management group of strategic change in the long-run (as reflected in market-based mea-
can offer the complexity of ideas and perspectives that would be sought sures such as Tobin’s q). Although change does not always work, firms
after by a TMT diverse in educational background. Indeed, research always make strategic changes with the intention of improving per-
suggests that TMT educational background diversity affords the broad- formance. The literature on the relationship between strategic change
based experiences and beliefs (Tihanyi et al., 2000) that we argue are and performance reveals many studies that report a positive effect of
compatible with a gender-diverse senior management. Also, a gender- strategic change on performance (McDougall and Oviatt, 1996; Zajac
diverse management group may share more knowledge with an open- et al., 2000; Zhang and Rajagopalan, 2010).
minded TMT that represents various educational backgrounds (Opstrup Therefore, it is proposed that senior management gender diversity
and Villadsen, 2014). also affects firm performance indirectly through strategic change, but
Consistent with upper echelons theory, which suggests that a we emphasize the critical nature of our two moderators in fully un-
manager's demographic characteristics could be utilized as proxies for derstanding this mediation. As Fig. 1 illustrates, we ultimately suggest a
their psychological patterns, preferences, and cognitions (Hambrick moderated mediation model. We describe our theoretical model in
and Mason, 1984), a gender-diverse senior management should gen- detail below.
erate more perspectives than a gender-homogenous senior manage- Alliance formation intensity and TMT educational background di-
ment. These perspectives then need to be considered by the TMT. A versity moderate the effect of senior management gender diversity on
TMT with educational diversity will be more adept at filtering and as- strategic change. Strategic change transmits the effect of senior man-
similating information from the senior management group because such agement gender diversity to firm performance across these two mod-
a TMT knows more and is in a better position to try new ideas (Li and erators. More specifically, senior management gender diversity's in-
Lo, 2017; Wiersema and Bantel, 1992). direct effect on firm performance, through strategic change, will vary at
Therefore, when TMT educational background diversity is high, we different levels of both alliance formation intensity and TMT educa-
predict the most positive relationship between senior management tional background diversity. Given that senior management gender

1684
M. Triana, et al. Research Policy 48 (2019) 1681–1693

Fig. 1. Conceptual model of senior management gender diversity effects.

diversity increases strategic change when alliance formation intensity is year observations.
high and TMT educational background diversity is high, we expect an
overall positive effect on subsequent firm performance. In contrast,
since we expect senior management gender diversity to limit strategic 4. Measures
change when alliance formation intensity is low and TMT educational
diversity is low (i.e., homogeneous), we expect to observe a perfor- 4.1. Dependent variable
mance decline. Thus, the following comprehensive hypothesis is of-
fered: 4.1.1. Firm performance
Firm performance is measured at time t + 2 by Tobin’s q. Tobin’s q
Hypothesis 3. The mediating role of strategic change in the relationship is a proxy for a firm’s market value that captures the intangible pre-
between senior management gender diversity and firm performance will be mium of workforce diversity (Richard et al., 2007; Wang et al., 2008).
simultaneously moderated by alliance formation intensity and TMT Tobin’s q is calculated as the sum of the market value of the firm’s
educational background diversity. equity, book value of long-term debt, and book value of short-term li-
abilities divided by total assets (Chung and Pruitt, 1994).

3. Empirical analysis
4.2. Independent variables
3.1. Sample and data collection
4.2.1. Senior management gender diversity
The hypotheses were tested in a sample of the U. S. computer in- Firms must report the gender of employees to the U.S. government’s
dustries with variables ranging from 2007 to 2017. The computer in- Equal Employment Opportunity Commission (EEOC) annually in the
dustries include software sectors (SIC codes 3571, 3572, 3575, and EEO-1 form. The EEOC defines executives/senior level officials as those:
3577) and hardware sectors (SIC codes 7371, 7372, 7373, and 7374).
"who plan, direct and formulate policies, set strategy and provide
The computer technology industry has a history of underrepresenting
the overall direction of enterprises/organizations for the develop-
women (Williams, 2014), but as female managers are emerging recently
ment and delivery of products or services, within the parameters
into senior management levels, it provides a natural setting to in-
approved by boards of directors or other governing bodies. Residing
vestigate how increasing senior management gender diversity affects
in the highest levels of organizations, these executives plan, direct or
companies. In addition, computer industries are suitable for testing the
coordinate activities with the support of subordinate executives and
hypotheses since they include a diverse population of firms in terms of
staff managers. They include, in larger organizations, those in-
size, scope, and alliance activities (Yang et al., 2011). Moreover, the
dividuals within two reporting levels of the CEO, whose responsi-
computer industries provide a sample size that is large enough to assure
bilities require frequent interaction with the CEO. Examples of these
sufficient power to detect effects (Murray, 1989). Also, because it is
kinds of managers are: chief executive officers, chief operating of-
important to account for industry differences within the high tech
ficers, chief financial officers, line of business heads, presidents or
sector, we include industry dummy variables (Murray, 1989).
executive vice presidents of functional areas or operating groups,
Data on senior managers’ gender were gathered from the Equal
chief information officers, chief human resources officers, chief
Employment Opportunity Commission (EEOC) as documented in the
marketing officers, chief legal officers, management directors and
Equal Employment Opportunity-1 (EEO-1) Report.
managing partners."
Employers with 100 or more employees in private sectors are re-
quired to file an annual EEO-1 report in order to disclose information We used only these senior level positions as defined by the EEOC to
about their workplace gender composition. Since information from the calculate senior management gender diversity. We calculated senior
EEO-1 report is disclosed at a unit/store level, we aggregated EEO-1 management gender diversity using Blau’s index of diversity (1977) at
subunit data to the firm level and matched it with corresponding time t. Blau’s index is appropriate for and commonly used to measure
Compustat financial information. We collected gender demographics diversity for categorical variables (Harrison and Klein, 2007). For
between 2007 and 2011. We started with the year 2007 because it is the gender, Blau’s index is based on two categories, and the theoretical
first year that the EEOC split the management category into executive/ range is from 0 to 0.5. For senior management gender diversity, we
senior level officials and middle level managers. The mean size of senior have a mean of 0.26 and a standard deviation of 0.14, implying that
management groups in our sample is 134, and the median is 55. (The females occupy roughly one quarter of these management positions. To
average number of employees for companies in our sample is 6626; the stay within the limits of the sample, all interpretations will be restricted
median number of employees is 1954). Data on alliances were collected to the range of the data. For details about the demographics of the
from the Securities Data Company (SDC) Platinum database that in- sample broken down by gender and race, see the Appendix. Although
cludes information such as the partners’ identities, the alliance an- women make up 44.7% of the U.S. workforce (Catalyst, 2018), they
nouncement date, the deal of the alliance, and the activities in which comprise 31% of the workforce in the high tech industries, and this
the alliance engages. After merging data from different databases and number narrows at higher organizational levels (27% of management
discarding records with missing values, our sample contained 566 firm- overall, 28% of middle managers, and 15% of top managers).

1685
M. Triana, et al. Research Policy 48 (2019) 1681–1693

Table 1
Descriptive statistics.
Mean S.D. 1 2 3 4 5 6 7 8 9 10 11

1. Firm performance (Tobin's q) 0.98 0.33 1

2. Strategic change 0.01 0.23 0.07 1
3. Firm size 1.16 1.05 −0.05 −0.10* 1
4. Slack 2.23 1.74 0.10* −0.10* −0.07 1
5. Firm age 12.36 7.39 −0.19* −0.17* 0.53* −0.06 1
6. California headquarters 0.32 0.47 0.06 −0.02 −0.05 −0.04 −0.06 1
7. TMT functional background diversity 0.61 0.10 0.10* −0.05 −0.04 0.04 −0.05 0.08 1
8. TMT average age 49.48 2.81 −0.11* 0.01 0.10* −0.06 0.10* −0.06 −0.09* 1
9. TMT average tenure 10.00 4.44 0.00 −0.05 0.06 0.01 0.06 −0.09* 0.10* 0.29* 1
10. Senior management gender diversity 0.26 0.14 0.06 −0.07 0.03 −0.18* 0.03 0.00 −0.01 0.01 0.00 1
11. Alliance formation intensity 1.75 2.62 −0.05 −0.07 0.29* −0.12* 0.17* 0.10* 0.12* −0.05 −0.04 −0.07 1
12. TMT educational background diversity 0.51 0.21 0.21* −0.00 −0.17* −0.07 −0.05 0.25* 0.33* −0.23* 0.08* 0.03 0.15*

California headquarters is coded as 1 if the corporate headquarters are in California and coded as 0 otherwise.
N = 566;
* p < 0.05.

4.3. Mediator their effects on the dependent variables. These include firm size, mea-
sured as the log value of the number of employees, as well as slack,
4.3.1. Strategic change calculated as current assets divided by current liabilies, because larger
Strategic change is the extent to which a firm changed its resource companies with more resources may perform better. Firm age, com-
allocations in key strategic dimensions (Zhang, 2006). Some literature puted as the years after initial public offering, was taken into account.
suggests utilizing changes in the product scope of a firm to measure Also, firms located in the same geographic area may generate a cluster
strategic change at the corporate level (Wiersema and Bantel, 1992), effect that affects firm strategy. To capture such a location effect, we
but this approach is not feasible in our study since a majority of com- included a dummy coded variable (California headquarters) coded 1 if
puter companies have only one primary SIC code (Stettner and Lavie, the corporate headquarters were in California and 0 otherwise. In ad-
2014). Therefore, we followed Finkelstein and Hambrick (1990) and dition, we included three conventional TMT background variables to
Zhang (2006) and chose strategic resource indicators to measure the control for TMT effects. A firm’s top management team includes the
magnitude of strategic change. The indicators are advertising intensity CEO, chairman, chief operating officer, chief financial officer, and other
(advertising expenses/sales), R&D intensity (R&D expenses/sales), in- C-level executives that firms document in their annual reports. We
ventory levels (inventories/net sales), plant and equipment newness identified those top managers and their functional backgrounds.
(net plant and equipment/gross plant and equipment), nonproduction Following prior literature (Wiersema and Bantel, 1992), we divided
overhead (selling, general, and administrative expenses/sales), and fi- TMT functional background into six categories: marketing/sales, pro-
nancial leverage (total debt/total assets). duction/operating, R&D/technology, finance/accounting, law, and
We calculated the one-year lagged differences in these ratios (a one- general. We used Blau’s index to calculate TMT functional background
year difference between year t and year t + 1) consistent with previous diversity. We also calculated TMT average age and TMT average tenure as
research (Zajac et al., 2000). We adopted the absolute value of these control variables. Lastly, we included within-industry dummy variables
values because the absolute value is indifferent to the direction of the to control for hardware versus software differences and year dummies
change. We then created a z-score so we could aggregate these six re- to control for temporal effects. These variables were omitted from the
source indicators into a single value that captures the amount of stra- tables for brevity. All controls were measured at time t.
tegic change.
4.6. Analyses
4.4. Moderators
Time series cross-sectional, generalized least squares regressions
4.4.1. Alliance formation intensity (GLS) were conducted to test the hypotheses. We chose random-effects
Firms may form alliances with different motivations and for various models over fixed-effects models for three reasons. First, the result of
purposes (Koza and Lewin, 1998). Some may form alliances to develop the Hausman (1978) test suggested the preferred model was random
new products; some may form alliances to enter new foreign markets. It effects (p > 0.05). Second, fixed-effects models reduce degrees of
is subjective, or arbitrary, to evaluate which types of alliances are more freedom and may generate biased estimates (Wooldridge, 2002). Third,
exploratory or exploitative compared to others. Therefore, we measure since senior management gender changes quite slowly over short time
a firm’s alliance formation intensity as the number of alliances the firm periods, using a fixed-effects model may severely constrain our analyses
formed in the previous three years (sum of number of alliances at year t, (Plümper and Troeger, 2007). We employed a two-year lag on the de-
t-1, and t-2). pendent variable to avoid endogeneity derived from reverse causality.

4.4.2. TMT educational background diversity 5. Results

TMT educational background was also divided into six categories:
arts, sciences, engineering, business/economics, law, and other. We Table 1 presents descriptive statistics and correlations. No correla-
calculated TMT educational background diversity for the five highest tion value among the variables is higher than 0.60, suggesting the
paid executives using Blau’s index (1977). The measure was taken at chance of multicollinearity is low. Moreover, we computed the variance
time t. inflation factors (VIF) which are 1/Tolerance to further assess multi-
collinearity. The econometrics textbook written by Wooldridge (2013,
4.5. Control variables 94) states: “Setting a cutoff value for VIF is arbitrary and not especially
helpful. Sometimes the value 10 is chosen” meaning VIF should be
We controlled for several firm characteristics in order to account for under 10. The values of VIFs in our main models for our explanatory

1686
M. Triana, et al. Research Policy 48 (2019) 1681–1693

Table 2
Results of GLS models for senior management gender diversity on strategic
change.
Model 1 Model 2 Model 3 Model 4

Firm size −0.01** −0.02*** −0.01** −0.01***

(0.00) (0.00) (0.00) (0.00)
Slack −0.01*** −0.01*** −0.01*** −0.01***
(0.00) (0.00) (0.00) (0.00)
Firm age −0.00*** −0.00*** −0.00*** −0.00***
(0.00) (0.00) (0.00) (0.00)
California headquarters −0.00 −0.01 −0.01 −0.01
(0.01) (0.01) (0.01) (0.01)
TMT functional background −0.07* −0.06† −0.09** −0.05
diversity
(0.03) (0.03) (0.03) (0.03)
TMT average age −0.00 0.00† −0.00 0.00
(0.00) (0.00) (0.00) (0.00)
TMT average tenure −0.00 −0.00† −0.00 −0.00
(0.00) (0.00) (0.00) (0.00)
Fig. 2. Interaction effect between senior management gender diversity and
Senior management gender −0.16*** −0.13*** −0.38***
alliance formation intensity on strategic change.
diversity
(0.02) (0.02) (0.08)
Alliance formation intensity −0.00* −0.01***
(0.00) (0.00)
TMT educational background 0.03 −0.09*
diversity
(0.02) (0.04)
Senior management gender 0.04***
diversity × Alliance
formation intensity
(0.01)
Senior management gender 0.45**
diversity × TMT educational
background diversity
(0.15)
Constant 0.21** 0.22** 0.22** 0.21**
(0.07) (0.07) (0.07) (0.08)
Wald Chi-square 173.77*** 364.85*** 452.02*** 280.42***
N 566 566 566 566

Note: 4-digit industry dummies and year dummies are included. Standard errors
are reported in parentheses. Two tailed tests.
†
p < 0.10.
Fig. 3. Interaction effect between senior management gender diversity and
* p < 0.05.
TMT educational background diversity on strategic change.
** p < 0.01.
*** p < 0.001.
of TMT educational background diversity, strategic change increases as
variables are all below 2, except for industry dummies. The highest VIF senior management gender diversity increases, but in firms with a low
for an industry dummy is 8.2 (which is the prepackaged software level of TMT educational background diversity, strategic change de-
dummy, SIC = 7372). Although there is one high VIF in our industry creases as their senior management gender diversity increases. Hy-
controls, the remaining VIFs of our main explanatory variables are well pothesis 2 is, therefore, supported.
below the cutoff value of 10. Multicollinearity concerns are, therefore, Hypothesis 3 states that the mediating role of strategic change in the
low. relationship between senior management gender diversity and firm
Table 2 reports the results of GLS estimations. Hypothesis 1 predicts performance will be moderated by both alliance formation intensity
that alliance formation intensity positively moderates the relationship and TMT educational background diversity. In order to conduct a
between senior management gender diversity and strategic change. comprehensive test of our entire model, we ran the Hayes PROCESS
Model 4 of Table 2 provides the results for the moderation effects. The Model 9 macro (Hayes, 2015) in SPSS for moderated mediation in-
Senior management gender diversity × Alliance formation intensity cluding both moderators (alliance formation intensity and TMT edu-
interaction term is significant (b = 0.04, p < 0.001). We plotted the cational background diversity) in the model. While structural equation
interaction effect in Fig. 2 to further examine the relationships visually. modeling is a popular choice for testing mediation when research pa-
In Fig. 2, we generally observe that there is a positive association be- pers use latent constructs (e.g., Boswell et al., 2012), we opted to use
tween senior management gender diversity and strategic change for regression with the Hayes PROCESS macro because we do not have
firms with high alliance formation (i.e., alliance numbers = 6) but a latent constructs. Thus, the Hayes PROCESS macro is appropriate for
negative association for firms with low alliance formation (i.e., alliance our data (Hayes et al., 2017; Hayes and Preacher, 2013), and this
numbers = 0). Therefore, Hypothesis 1 is supported. technique provides statistical output that can be easily interpreted by
Hypothesis 2 predicts that TMT educational background diversity end users.
has a positive moderating effect on the relationship between senior Table 3 reveals that strategic change mediates the senior manage-
management gender diversity and strategic change. Model 4 of Table 2 ment gender diversity to firm performance relationship (coefficient =
provides results for this moderation test. The Senior management -.101; standard error = .044; lower level of the 95% confidence interval
gender diversity × TMT educational diversity background interaction = -.211 and upper level of the 95% confidence interval = -.031), and
term is significant (b = 0.45, p < 0.01). Fig. 3 graphically shows the the relationship is significant and negative when alliance formation
interaction effects. In Fig. 3, we observe that in firms with a high level intensity and TMT educational background diversity are both low. This

1687
M. Triana, et al. Research Policy 48 (2019) 1681–1693

Table 3
Moderated-mediation results presenting 2 way interaction effects of senior management gender diversity × alliance formation intensity and senior management
gender diversity × TMT educational background diversity on performance through strategic change.
Alliance Formation TMT Educational Background Firm Performance (Tobin’s q)
Intensity Diversity
Indirect Effect SE LL 95% CI UL 95% CI

Senior Management Gender Diversity Effects Through Low Low −0.101 0.044 −0.211 −0.031
Strategic Change Low Moderate −0.054 0.025 −0.116 −0.012
Low High −0.008 0.022 −0.06 0.029
High Low −0.037 0.042 −0.115 0.059
High Moderate 0.009 0.031 −0.032 0.105
High High 0.056 0.035 0.001 0.141

Note: N = 566. Bootstrap sample size = 10,000.

Values for the moderators are the mean (moderate) and +1 SD (high)/ -1 SD (low) from the mean.
LL = lower level and UL = Upper level bias-corrected CI (confidence interval).
Values in bold indicate statistical significance at p < .05.

shows the market does not respond as well under these circumstances coded 1, otherwise we coded 0. We also examined all prior jobs the
due to the lack of strategic change because firm performance declines. manager had and whether any of them were outside of the computer
However, findings show that senior management gender diversity in- industry (coded 1 if they had experience outside of the computer in-
creases firm performance via an acceleration of strategic change when dustry, 0 otherwise). We then aggregated these data to the firm level
alliance formation intensity is high and TMT educational background and divided by the number of top management team members. In sum,
diversity is high (coefficient = .056; standard error = .035; lower level we created two additional TMT background variables: TMT interna-
of the 95% confidence interval = .001 and upper level of the 95% tional experience and TMT prior non-computer industry experience. We
confidence interval = .141). In sum, Hypotheses 1 through 3 are sup- did not find any significant effects of senior management gender
ported. diversity × TMT prior non-computer industry experience predicting
strategic change. However, we did find a significant moderating effect
5.1. Supplemental analyses of senior management gender diversity × TMT international experience
predicting strategic change (b = 0.81, p < 0.05). The interaction ef-
We examined whether our moderated mediation results would be fect shown in Fig. 4 is similar to the moderating effects of TMT edu-
consistent if we distinguished between exploration alliance formation cational background diversity and alliance formation intensity. The
and exploitation alliance formation instead of using our combined al- famous American writer, Mark Twain, once said that: “travel is fatal to
liance formation measure. We analyzed each alliance from the SDC prejudice, bigotry, and narrow-mindedness, and many of our people
database to categorize whether an alliance was exploratory based on need it sorely on these accounts” (Twain, 1884, reprinted in 2012: 310).
March (1991) and counted the number of exploration alliances a firm It appears that TMT international experience is another TMT char-
formed in each year. Following Lin et al. (2009); Rothaermel (2001), acteristic (like TMT educational background diversity) that triggers
and Yang et al. (2011), we coded exploration alliance if the purpose was open-mindedness and embracing of new ideas from a gender-diverse
to discover or to experiment with new technology such as R&D and senior management, thereby leading to more strategic change.
software development. Next, we counted the number of exploitation Lastly, we conducted an additional test lagging the dependent
alliances a firm formed in each year. If the purpose of the alliance was variable more years. Specifically, we changed our firm performance
to utilize resources between alliance partners such as marketing, fi- measure (Tobin’s q) to t + 5, which corresponds to the year 2017. The
nance, and transportation, we coded it as an exploitation alliance. The results were consistent with our main findings.
pattern of results was similar across exploration, exploitation, and the
combined measure of alliances. 6. Discussion
Some may wonder whether internal knowledge could come from
other experiences such as TMT functional background diversity, TMT Previous upper echelons research has often focused on the top five
non-computer industry experience, and TMT international work ex-
perience. Therefore, we investigated these variables as alternative
sources of internal knowledge. Regarding TMT functional background
diversity, results show that there is no significant moderating effect of
TMT functional background diversity on the relationship between se-
nior management gender diversity and strategic change, but the mod-
erating effect of alliance formation intensity remains significant. The
lack of moderation may suggest that executives in their functions spend
most of their time operating within their own routines (Bermiss and
Murmann, 2015; Fligstein, 1987; Ocasio and Kim, 1999). Because each
function develops its own set of techniques and processes, functional
executives tend to become rivals rather than cooperate across each
function (Connelly et al., 2014).
We also collected data on TMT executives’ non-computer industry
experience and international experience. We hand collected this in-
formation for the 1370 TMT executives in our sample by conducting a
search of their LinkedIn profile, their Bloomberg profile, or a general
Google search of information about them at their company web page or
other sources. Specifically, we checked each manager’s prior work ex- Fig. 4. Interaction effect between senior management gender diversity and
perience. If the manager had work experience outside the U.S., we TMT international work experience on strategic change.

1688
M. Triana, et al. Research Policy 48 (2019) 1681–1693

highest paid executives, neglecting individuals within two reporting Williams and O’Reilly, 1998), or bolsters performance, as the value in
levels of the CEO who interact with the CEO and are executive decision- diversity hypothesis predicts (Cox and Blake, 1991; Richard and Shelor,
makers. Our goal is to offer a comprehensive study using a broader 2002). Indeed, scholars have characterized gender diversity as a
definition of the upper echelons that not only aligns with the upper double-edged sword dimension of diversity (Milliken and Martins,
echelons perspective theoretically and practically but also possesses 1996; Pieterse et al., 2013). Our integration of the strategic alliance and
robust predictive validity on strategic change above and beyond pre- upper echelons literatures to explain diversity effects may have im-
viously studied top management team characteristics (e.g., TMT func- plications for other visible dimensions of diversity, especially national
tional background). People within two reporting levels of the CEO are culture diversity (Pieterse et al., 2013).
considered senior executives by the Equal Employment Opportunity Our findings reiterate that gender diversity effects in the upper
Commission because they interact with the highest paid executives to echelons are nuanced rather than straightforward (Triana et al., 2014).
shape strategy. We propose that the knowledge-sharing associated with Results show that gender diversity in senior management facilitates
increased senior management gender diversity can be more adequately strategic change under conditions of high alliance formation intensity,
captured when one defines the upper echelons as the TMT (the top five which promotes organizational learning, and in situations where the
highest paid executives including the CEO), together with other senior TMT has a diversity of educational backgrounds from which to draw
executives who are involved in executive decision-making such as (but when making decisions. Thus, upper echelons theory can be extended
not limited to) presidents or executive vice presidents of functional to describe that gender diversity in senior management may most po-
areas or operating groups, chief human resources officers, chief in- sitively affect strategic change and firm performance when the orga-
formation officers, and chief marketing officers. Our expanded scope nization is predisposed to building alliances and when the TMT has a
regarding who impacts strategic change and firm performance beyond diverse educational background which may facilitate listening to and
the TMT has research implications for upper echelons theory. learning from a variety of perspectives.

6.1. Theoretical implications 6.2. Managerial implications

The present study expands upper echelons research. From a theo- The present findings challenge the assumption that demographic
retical perspective, there is a need to integrate other research streams diversity represents a problem to be managed rather than a resource to
with upper echelons theory (Hambrick and Mason, 1984) to more fully be used for competitive advantage. With the steady increase of women
determine the mechanisms that explain how diversity contributes to or within senior management, gender represents a diversity attribute
detracts from firm performance. Hence, we sought to merge the orga- worthy of investigation for research and practice. Our findings are
nizational learning literature related to strategic alliance formation and consistent with research supporting the business case for diversity
learning with upper echelons theory to provide a more comprehensive which found that gender diversity among the upper echelons is asso-
framework for studying senior management gender diversity. This ciated with more innovation (Miller and Triana, 2009) and weakly but
study joins macro-level scholarship that places gender at the focal point positively associated with firm performance (Jeong and Harrison, 2017;
(Dezsö and Ross, 2012; Nishii, 2013; Triana et al., 2014). The present Post and Byron, 2015). The findings suggest that it may be good to have
study utilized a large, longitudinal sample of U.S. computer technology a balance of women and men in firms because gender diversity im-
companies as a backdrop to study gender in senior management and proves market-based performance by bolstering strategic change when
find support for the hypotheses. Specifically, results show that senior alliance formation intensity is high and the TMT possesses educational
management gender diversity relates to firm performance through the background diversity.
mechanism of strategic change. Senior management gender diversity is We sought to investigate whether firms with varying levels of senior
negatively associated with strategic change. Further, both alliance management gender diversity are in a better or worse position to
formation intensity and TMT educational background diversity not only strategically change when they have particular alliance structures and
moderated the relationship between senior management gender di- TMTs of different educational backgrounds. Findings show that senior
versity and strategic change but also moderated the mediating effect of management gender diversity was related to firm performance (Tobin’s
strategic change on the senior management gender diversity to firm q) through strategic change and that this mediation effect was moder-
performance relationship. ated by both alliance formation intensity and TMT educational back-
Upper echelons theory maintains that a firm’s actions are the result ground diversity. Furthermore, senior management gender diversity
of its top executives applying their own filters to environmental stimuli appears to be related to firm performance through strategic change in a
to interpret the environment (Hambrick and Mason, 1984). Per upper different manner when considering high versus low levels of the mod-
echelons theory, this process of filtering information involves the top erators which highlights the critical need to understand the context in
executives using their cognitive base, values, selective perception, and which this diversity operates. Taken together, the present findings
interpretation to make strategic choices. Hambrick and Mason (1984, suggest that cracking the glass ceiling may not only be ethical but also
196) focused on characteristics including “age, tenure in the organi- good for business. Senior manager gender diversity has the most posi-
zation, functional background, education, socioeconomic roots, and tive impact on the future amount of strategic change and firm perfor-
financial position.” In this study, we support and extend upper echelons mance in complex, information-rich environments (i.e., with alliance
theory by showing that senior management gender diversity, and the formation intensity; with TMT educational background heterogeneity).
company’s level of strategic change influence firm performance. This In sum, results support the business case for diversity (Cox and
more detailed look at upper echelons theory supports the original Blake, 1991; Pless and Maak, 2004; Thomas and Ely, 1996), because
theory since the characteristics of the senior managers influence the they suggest that diverse individuals who represent multiple perspec-
firm’s outcomes, such as strategic change and firm performance. It also tives can be positively associated with organizational performance. The
extends upper echelons theory by taking a more nuanced approach to present findings show that gender diversity in senior management is
explain how and under what conditions (i.e., alliance formation in- associated with more strategic change when firms have more alliances
tensity, TMT educational background diversity) those senior managers’ and the TMT has educational diversity. This supports the notion that
characteristics impact firm outcomes in accordance with our theoretical diversity makes the most difference when the environment is receptive
model (see Fig. 1). and able to utilize the knowledge that diversity has to offer. These
The present investigation concentrated on gender diversity because findings are consistent with Lozano and Escrich’s (2017) ethics theory,
of the ambiguity in the diversity literature regarding whether or not it which maintains that being tolerant of minority groups is not good
hampers performance, as reviews of the literature predict (Menz, 2012; enough. Instead, full respect and integration of minority groups into

1689
M. Triana, et al. Research Policy 48 (2019) 1681–1693

organizations comprised of mostly majority group members needs to be demographic diversity should be most valuable when it exposes mem-
achieved in order for organizations to perform their best. While toler- bers to unique sources of knowledge. Westphal and Milton (2000) also
ance is intended to facilitate peace between different groups (like report that demographic minority directors on boards are most influ-
passengers who sit together on a train), if perspectives from different ential on a given board when they have network ties to majority
groups of people are not utilized for learning and well integrated into members on that same board from an association where those two di-
the organization, tolerance does not result in positive interactions with rectors serve together on a different board. It is possible that alliances
full respect (Lozano and Escrich, 2017). Our findings suggest that or- are most fruitful when senior managers have a diverse group of ac-
ganizations may lose an important source of competitive advantage quaintances at other firms and use those connections to provide an
from diverse employees who can help the organization perform better if influx of information and many alliance partners from which to choose.
they do not have an inclusive culture to achieve integration of the We also suggest that human resource management systems, or di-
various demographic groups in their workforce. versity management practices, might be an important component to
include in future research exploring diversity effects. For example,
6.3. Limitations and future research directions human resource practices such as appraisal and reward systems can be
tailored to contribute to job security, promote risk-taking, and foster
Future research may further investigate the practical impact of innovation, which would seem to be important moderators (Patel et al.,
gender as well as other types of diversity within an alliance and social 2013). Furthermore, human resource management systems that include
network context. For instance, the rationale for increasing task-based participation programs and decentralized decision-making will allow
diversity has dominated the upper echelons literature while surface- more collaboration, inclusion in decision-making, and, ultimately, more
level categories, such as gender, have not been considered to represent elaboration of task-relevant information among executives within
knowledge and differences in perspectives (Williams and O’Reilly, management (Nishii, 2013; Richard et al., 2013; van Knippenberg and
1998). However, the basic tenets of upper echelons theory suggest that Schippers, 2007). Such elements are critical in fostering a climate for
all of a manager's demographic characteristics could be utilized as inclusion which has been shown to reduce the potential negative pro-
proxies for their psychological patterns, preferences, and cognitions cesses associated with diversity (Nishii, 2013). In our case, a climate for
(Hambrick and Mason, 1984). Furthermore, van Knippenberg et al. inclusion could positively moderate the senior management gender
(2004) suggest that scholars not put salient traits in a different box than diversity to strategic change relationship.
deep-level traits (e.g., values, personality) and propose that future re- Furthermore, the present study investigates the computer tech-
search disentangle when various diversity measures have similar or nology industry, so the results best generalize to similar knowledge-
different effects on outcomes of interest. intensive industries. Although this allowed us to more adequately test
Future research should also consider other mediating factors that our hypotheses by ruling out industry differences, we sacrificed the
may link senior management diversity to firm performance (Phelps potential to make predictions about other traditional industries (e.g.,
et al., 2012). For example, Andrevski et al. (2014) found that a firm’s the textiles industry). Thus, future research should test whether our
competitive actions mediated the relationship between overall man- findings generalize to other industries. Moreover, it would be ideal to
agement diversity (aggregate of lower level, mid-level, and top level) consider effects that occur not only at the corporate level but also at the
and financial performance. Other process variables such as information subsidiary level. We focused exclusively at the corporate level of ana-
elaboration and innovation also offer promise as internal firm me- lysis because financial data are readily available, but a multi-level ap-
chanisms (Miller and Triana, 2009; Pieterse et al., 2013). proach would account for diversity effects from the subsidiary level to
In addition, research should consider other moderating factors. For the regional level and up to the corporate level. It could be that one
example, one could consider aspects of relational network ties including institutional level drives diversity effects more so than another, de-
structural holes, network tie strength, network tie diversity, and net- pending upon the industry.
work partner diversity (Phelps et al., 2012) which could offer new in- Additionally, senior management gender diversity effects can be
sight into senior management diversity effects on performance out- investigated across nations. Hambrick (2007) noted that because ex-
comes. Hence, we call for future scholarship to examine the moderating ecutives have more managerial discretion in the U.S., companies in the
effects of social network properties. Additional contextual considera- U.S. are more likely to observe effects in line with our predictions.
tions might be aspects of the external environment such as board of However, scholars exploring senior management diversity across na-
director composition (Miller and Triana, 2009). For example, would it tional cultures should consider power distance, collectivism, and other
be more effective for the senior management demography to mirror cultural dimensions when crafting their hypotheses (Rabl et al., 2014).
that of the board of directors or should they complement one another Then we may fully understand when upper echelons demographic ef-
by having a different demographic composition between the two enti- fects are generalizable.
ties? Women have been consistently under-represented on boards of
directors for many decades (Campbell and Mínguez-Vera, 2008; 7. Conclusion
Chapple and Humphrey, 2014; Joecks et al., 2013; Wahid, 2018). Might
achieving gender representation on boards proportional to the re- Although challenges remain in fully breaking the glass ceiling in the
presentation of men and women in workplaces help supplement U.S. (Catalyst, 2018; Hoobler et al., 2011), the present study reveals
knowledge gaps for firms where women are under-represented in senior that cracks in the glass ceiling pertaining to senior management gender
management? Future research may investigate these questions. diversity allow firms to realize a competitive advantage from their di-
Research also needs to go beyond investigating inter-organizational versity through strategic change. This study goes beyond the naive
strategic alliances to examine intra-organizational networks. Dynamics approach to understanding diversity effects, which assumes diversity is
among executives and the individual ties they have within and outside always good or always bad. Instead, we offer a more sophisticated,
the firm can have implications for both senior management and their holistic approach which examines the influence of senior management
collaborations (Wang et al., 2014). One limitation of our study is that gender diversity within the context in which the firm operates (Joshi
we do not have demographic data from each firm with which the focal and Roh, 2009). Developing the role of inter-organizational learning
firm has formed an alliance. The degree of similarity between the de- and other organizational features as contexts in which the senior
mographics of senior managers at a given firm and those of the senior management diversity to firm performance relationship unfolds appears
managers at a firm with which they create alliances may be telling if to be a fruitful path for future scholarship. Such a research path can
there are homophily, or similarity-attraction effects, facilitating alliance help answer calls from academics and practitioners regarding the im-
formation (Ibarra, 1992, 1993). Cummings (2004) explains that pact of gender diversity in the upper echelons, defined broadly and

1690
M. Triana, et al. Research Policy 48 (2019) 1681–1693

more holistically. Importantly, results support that providing equal Declaration of interests
opportunity for advancement of both men and women to senior man-
agement can also be good for business. None.

Appendix A. The Composition of Gender and Race in the Computer Industries Sample

Rank Composition ratio Mean S.D. Rank Composition ratio Mean S.D.

Top managers White male ratio 0.73 0.17 Middle managers White male ratio 0.56 0.14
Black male ratio 0.01 0.02 Black male ratio 0.02 0.02
Hispanic male ratio 0.02 0.05 Hispanic male ratio 0.03 0.04
Asian male ratio 0.09 0.13 Asian male ratio 0.11 0.14
Native American male ratio 0.00 0.01 Native American male ratio 0.00 0.00
White female ratio 0.14 0.10 White female ratio 0.22 0.11
Black female ratio 0.00 0.02 Black female ratio 0.01 0.02
Hispanic female ratio 0.00 0.03 Hispanic female ratio 0.01 0.02
Asian female ratio 0.01 0.03 Asian female ratio 0.04 0.04
Native American female ratio 0.00 0.00 Native American female ratio 0.00 0.00
Management overall White male ratio 0.58 0.13 Firm overall White male ratio 0.48 0.13
Black male ratio 0.01 0.02 Black male ratio 0.03 0.03
Hispanic male ratio 0.02 0.02 Hispanic male ratio 0.03 0.04
Asian male ratio 0.11 0.13 Asian male ratio 0.13 0.13
Native American male ratio 0.00 0.00 Native American male ratio 0.00 0.00
White female ratio 0.22 0.10 White female ratio 0.21 0.10
Black female ratio 0.01 0.02 Black female ratio 0.02 0.03
Hispanic female ratio 0.01 0.02 Hispanic female ratio 0.02 0.03
Asian female ratio 0.03 0.03 Asian female ratio 0.06 0.04
Native American female ratio 0.00 0.00 Native American female ratio 0.00 0.00

References Cummings, J.N., 2004. Work groups, structural diversity, and knowledge sharing in a
global organization. Manage. Sci. 50, 352–364.
Dezsö, C.L., Ross, D.G., 2012. Does female representation in top management improve
Alexiev, A.S., Jansen, J.J., Van den Bosch, F.A., Volberda, H.W., 2010. Top management firm performance? A panel data investigation. Strateg. Manage. J. 33, 1072–1089.
team advice seeking and exploratory innovation: the moderating role of TMT het- Dwyer, S., Richard, O.C., Chadwick, K., 2003. Gender diversity in management and firm
erogeneity. J. Manag. Stud. 47, 1343–1364. performance: the influence of growth orientation and organizational culture. J. Bus.
Amason, A.C., Sapienza, H.J., 1997. The effects of top management team size and in- Res. 56, 1009–1019.
teraction norms on cognitive and affective conflict. J. Manage. 23, 495–516. Echeverri-Carroll, E.L., Oden, M.D., Gibson, D.V., Johnston, E.A., 2018. Unintended
Andrevski, G., Richard, O.C., Shaw, J.D., Ferrier, W.J., 2014. Racial diversity and firm consequences on gender diversity of high-tech growth and labor market polarization.
performance: the mediating role of competitive intensity. J. Manage. 40, 820–844. Res. Policy 47, 209–217.
Bantel, K.A., Jackson, S.E., 1989. Top management and innovations in banking: Does the Ely, R.J., Padaric, I., Thomas, D.A., 2012. Racial diversity, racial asymmetries, and team
composition of the top team make a difference? Strateg. Manage. J. 10, 107–124. learning environment: effects on performance. Organ. Stud. 33, 341–362.
Bermiss, Y.S., Murmann, J.P., 2015. Who matters more? The impact of functional back- Finkelstein, S., Hambrick, D.C., 1990. Top-management-team tenure and organizational
ground and top executive mobility on firm survival. Strateg. Manage. J. 36 (11), outcomes: the moderating role of managerial discretion. Adm. Sci. Q. 35, 484–503.
1697–1716. Finkelstein, S., Hambrick, D.C., 1996. Strategic Leadership: Top Executives and Their
Blanco-Oliver, A., Veronesi, G., Kirkpatrick, I., 2018. Board heterogeneity and organisa- Effects on Organizations. West Publishing Company, St. Paul, Minneapolis, MN.
tional performance: the mediating effects of line managers and staff satisfaction. J. Fligstein, N., 1987. The intraorganizational power struggle: rise of finance personnel to
Bus. Ethics 152 (2), 393–407 ISSN 0167-4544. top leadership in large corporations, 1919-1979. Am. Sociol. Rev. 52, 44–58.
Blau, P.M., 1977. Inequality and Heterogeneity. Free Press, New York. Forbes, D.P., Milliken, F.J., 1999. Cognition and corporate governance: understanding
Blettner, D.P., He, Z., Hu, S., Bettis, R.A., 2015. Adaptive aspirations and performance boards of directors as strategic decision-making groups. Acad. Manag. Rev. 24,
heterogeneity: attention allocation among multiple reference points. Strateg. 489–505.
Manage. J. 36, 987–1005. Gilgoff, D., 2009. Investing in diversity. US News World Rep. 146 (10), 72–74.
Boswell, W., Watkins, M., Triana, M., Zardkoohi, A., Ren, R., Umphress, E., 2012. Second- Goncalo, J., Chatman, J., Duguid, M., Kennedy, J., 2015. Creativity from constraint: how
class citizen? Contract workers’ perceived status, dual commitment, and intent to the PC norm influences creativity in mixed-sex work groups. Adm. Sci. Q. 60, 1–30.
quit. J. Vocat. Behav. 80, 454–463. Goodstein, J., Gautam, K., Boeker, W., 1994. The effects of board size and diversity on
Bromiley, P., Rau, D., 2016. Social, behavioral, and cognitive influences on upper eche- strategic change. Strateg. Manage. J. 15, 241–250.
lons during strategy process: a literature review. J. Manage. 42 (1), 174–202. Hambrick, D.C., 2007. Upper echelons theory: an update. Acad. Manag. Rev. 32,
Burgelman, R.A., 1983. Corporate entrepreneurship and strategic management: insights 334–343.
from a process study. Manage. Sci. 29, 1349–1364. Hambrick, D.C., Mason, P.A., 1984. Upper echelons: the organization as a reflection of its
Campbell, K., Mínguez-Vera, A., 2008. Gender diversity in the boardroom and firm fi- top managers. Acad. Manag. Rev. 9, 193–206.
nancial performance. J. Bus. Ethics 83, 435–451. Hambrick, D.C., Cho, T.S., Chen, M.J., 1996. The influence of top management team
Carpenter, M.A., Fredrickson, J.W., 2001. Top management teams, global strategic pos- heterogeneity on firms’ competitive moves. Adm. Sci. Q. 41, 659–684.
ture, and the moderating role of uncertainty. Acad. Manag. J. 44, 533–545. Harrison, D.A., Klein, K.J., 2007. What’s the difference? Diversity constructs as separa-
Carpenter, M.A., Sanders, W.G., 2002. Top management team compensation: The missing tion, variety, and disparity in organization. Acad. Manag. Rev. 32, 1199–1228.
link between CEO pay and firm performance? Strateg. Manage. J. 23, 367–375. Hausman, J.A., 1978. Specification tests in econometrics. Econometrica 46, 1251–1271.
Carpenter, M.A., Geletkanycz, M.A., Sanders, W.G., 2004. Upper echelons research re- Hayes, A.F., 2015. An index and test of linear moderated mediation. Multivariate Behav.
visited: antecedents, elements, and consequences of top management team compo- Res. 50, 1–22.
sition. J. Manage. 30, 749–778. Hayes, A.F., Preacher, K.J., 2013. Conditional process modeling: using structural equation
Catalyst, 2018. Pyramid: Women in S&P 500 Companies. Catalyst, New York. http:// modeling to examine contingent causal processes. In: Hancock, G.R., Mueller, R.O.
www.catalyst.org/knowledge/women-sp-500-companies. (Eds.), Structural Equation Modeling: A Second Course, 2nd ed. Information Age
Chadwick, I., Raver, J., 2015. Motivating organizations to learn: goal orientation and its Publishing, Greenwich, CT.
influence on organizational learning. J. Manage. 41, 957–986. Hayes, A.F., Montoya, A.K., Rockwood, N.J., 2017. The analysis of mechanisms and their
Chapple, L., Humphrey, J.E., 2014. Does board gender diversity have a financial impact? contingencies: PROCESS versus structural equation modeling. Australas. Mark. J. 25,
Evidence using stock portfolio performance. J. Bus. Ethics 122, 1–15. 76–81.
Chung, K.H., Pruitt, S.W., 1994. A simple approximation of Tobin’s q. Financ. Manage. Heavey, C., Simsek, Z., 2017. Distributed cognition in top management teams and or-
23, 70–74. ganizational ambidexterity: the influence of transaction memory systems. J. Manage.
Connelly, B.L., Tihanyi, L., Crook, T.R., Gangloff, K.A., 2014. Tournament theory: thirty 43 (3), 919–945.
years of contests and competitions. J. Manage. 40, 16–47. Heyden, M.L.M., Reimer, M., Van Doorn, S., 2017. Innovating beyond the horizon: CEO
Cox, T.H., Blake, S., 1991. Managing cultural diversity: implications for organizational career horizon, top management composition, and R&D intensity. Hum. Resour.
competitiveness. Acad. Manag. Exec. 5, 45–56. Manage. 56 (2), 205–224.

1691
M. Triana, et al. Research Policy 48 (2019) 1681–1693

Hofer, C.W., Schendel, D., 1978. Strategy Formulation: Analytical Concepts. West, St. Milliken, F.J., Vollrath, D., 1991. Strategic decision-making tasks and group effectiveness:
Paul, MN. . insights from theory and research on small groups. Hum. Relat. 44, 1229–1253.
Hoobler, J.M., Lemmon, G., Wayne, S.J., 2009. Bosses’ perceptions of family-work con- Mintzberg, H., 1983. Power In and Around Organizations. Prentice-Hall, Englewood
flict and women’s promotability: glass ceiling effects. Acad. Manag. J. 52, 939–957. Cliffs, NJ.
Hoobler, J.M., Lemmon, G., Wayne, S.J., 2011. Women’s underrepresentation in upper Murray, A.I., 1989. Top management group heterogeneity and firm performance. Strateg.
management: new insights on a persistent problem. Organ. Dyn. 40, 151–156. Manage. J. 10, 125–141.
Hoobler, J.M., Masterson, C.R., Nkomo, S.M., Michel, E.J., 2018. The business case for Nakauchi, M., Wiersema, M.F., 2015. Executive succession and strategic change in Japan.
women leaders: meta-analysis, research critique, and path forward. J. Manage. 44 Strateg. Manage. J. 36 (2), 298–306.
(6), 2473–2499. Nielsen, B., Nielsen, S., 2013. Top management team nationality diversity and firm
Ibarra, H., 1992. Homophily and differential returns: sex differences in network structure performance: a multilevel study. Strateg. Manage. J. 34, 373–382.
and access in an advertising firm. Adm. Sci. Q. 37, 422–447. Nishii, L., 2013. The benefits of climate for inclusion for gender diverse groups. Acad.
Ibarra, H., 1993. Personal networks of women and minorities in management: a con- Manag. J. 56, 1754–1774.
ceptual framework. Acad. Manag. Rev. 18, 56–87. Ocasio, W., Kim, H., 1999. The circulation of corporate control: selection of functional
Inkpen, A.C., Tsang, E.W., 2007. Learning and strategic alliances. Acad. Manag. Ann. 1, backgrounds of new CEOs in large US manufacturing firms, 1981–1992. Adm. Sci. Q.
479–511. 44 (3), 532–562.
Jackson, S.E., 1992. Team composition in organizational settings: issues in managing an Oehmichen, J., Schrapp, S., Wolff, M., 2017. Who needs experts most? Board industry
increasingly diverse work force. In: Worchel, S., Wood, W., Simpson, J.A. (Eds.), expertise and strategic change-a contingency perspective. Strateg. Manage. J. 38 (3),
Group Process and Productivity. Sage, Newbury Park, CA, pp. 138–173. 645–656.
Jehn, K., Chadwick, C., Thatcher, S., 1997. To agree or not to agree: the effects of value Opstrup, N., Villadsen, A.R., 2014. The right mix? Gender diversity in top management
congruence, individual demographic dissimilarity, and conflict in workgroup out- teams and financial performance. Public Adm. Rev. 75 (2), 291–301.
comes. Int. J. Confl. Manag. 8, 287–305. Parola, H.R., Ellis, K.M., Golden, P., 2015. Performance effects of top management team
Jehn, K.A., Northcraft, G.B., Neale, M.A., 1999. Why differences make a difference: a field gender diversity during the merger and acquisition process. Manage. Decis. 53 (1),
study of diversity, conflict and performance in workgroups. Adm. Sci. Q. 44, 57–74.
741–763. Patel, P.C., Messersmith, J., Lepak, D., 2013. Walking the tight-rope: an assessment of the
Jeong, S.H., Harrison, D.A., 2017. Glass breaking, strategy making, and value creating: relationship between high performance work systems and organizational ambi-
meta-analytic outcomes of women as CEOs and TMT members. Acad. Manag. J. 60, dexterity. Acad. Manag. J. 56, 1420–1442.
1219–1252. Pearce, J.L., Randel, A.E., 2004. Expectations of organizational mobility, workplace social
Jiang, X., Li, Y., 2008. The relationship between organizational learning and firm’s fi- inclusion, and employee job performance. J. Organ. Behav. 25, 81–98.
nancial performance in strategic alliances: a contingency approach. J. World Bus. 43, Pelled, L.H., 1996. Demographic diversity, conflict, and work group outcomes: an in-
365–379. tervening process theory. Organ. Sci. 7, 615–631.
Joecks, J., Pull, K., Vetter, K., 2013. Gender diversity in the boardroom and firm per- Pelled, L.H., Eisenhardt, K.M., Xin, K.R., 1999. Exploring the black box: an analysis of
formance: what exactly constitutes a “critical mass?”. J. Bus. Ethics 118, 61–72. work group diversity, conflict and performance. Adm. Sci. Q. 44, 1–28.
Joshi, A., Roh, H., 2009. The role of context in work team diversity research: a meta- Phelps, C., Heidl, R., Wadhwa, A., 2012. Knowledge, networks, and knowledge networks
analytic review. Acad. Manag. J. 52, 599–627. a review and research agenda. J. Manage. 38, 1115–1166.
Joshi, A., Liao, H., Roh, H., 2011. Bridging domains in workplace demography research: a Pieterse, A.N., van Knippenberg, D., van Dierendonck, D., 2013. Cultural diversity and
review and reconceptualization. J. Manage. 37 (2), 521–552. team performance: the role of team member goal orientation. Acad. Manag. J. 56,
Kanter, R.M., 1977. Men and Women of the Corporation. Basic Books, New York. 782–804.
Kochan, T., Bezrukova, K., Ely, R.J., Jackson, S., Joshi, A., Jehn, K., Leonard, J., Levine, Pless, N.M., Maak, T., 2004. Building an inclusive diversity culture: principles, processes
D., Thomas, D., 2003. The effects of diversity on business performance: report of the and practice. J. Bus. Ethics 54 (2), 129–147.
diversity research network. Hum. Resour. Manage. 42, 3–21. Plümper, T., Troeger, V.E., 2007. Efficient estimation of time-invariant and rarely
Koza, M.P., Lewin, A.Y., 1998. The co-evolution of strategic alliances. Organ. Sci. 9, changing variables in finite sample panel analyses with unit fixed effects. Political
255–264. Anal. 15, 124–139.
Koza, M.P., Lewin, A.Y., 2000. Managing partnerships and strategic alliances: raising the Post, C., Byron, K., 2015. Women on boards and firm financial performance: a meta-
odds of success. Eur. Manag. J. 18, 146–151. analysis. Acad. Manag. J. 58, 546–1571.
Kozlowski, S.W.J., Bell, B.S., 2003. Work groups and teams in organizations. In: In: Quintana-Garcia, C., Benavides-Velasco, C.A., 2016. Gender diversity in top management
Borman, W.C., Ilgen, D.R., Klimoski, R. (Eds.), Handbook of Industrial and teams and innovation capabilities: the initial public offerings of biotechnology firms.
Organizational Psychology Vol. 12. Wiley, New York, pp. 333–375. Long Range Plann. 49 (4), 507–518.
Lavie, D., Rosenkopf, L., 2006. Balancing exploration and exploitation in alliance for- Rabl, T., Jayasinghe, M., Gerhart, B., Kuhlmann, T.M., 2014. A meta-analysis of country
mation. Acad. Manag. J. 49, 797–818. differences in the high-performance work system-business performance relationship:
Lawrence, B.S., 1997. Perspective-the black box of organizational demography. Organ. the roles of national culture and managerial discretion. J. Appl. Psychol. 99 (6),
Sci. 8, 1–22. 1011–1041.
Li, P., Lo, F., 2017. Top management teams’ managerial resources and international di- Rabl, T., Triana, M., Byun, S.Y., Bosch, L., 2018. Diversity management efforts as an
versification: the evidence under an uncertain environment. Manage. Decis. 55 (9), ethical responsibility: how employees’ perceptions of an organizational integration
1999–2017. and learning approach to diversity affect employee behavior. J. Bus. Ethics. https://
Lin, Z., Peng, M., Yang, H., Sun, S.L., 2009. How do networks and learning drive M & As? doi.org/10.1007/s10551-018-3849-7.
An institutional comparison between China and the United States. Strateg. Manage. J. Reimer, M., Van Doorn, S., Heyden, M.L.M., 2018. Unpacking functional experience
30, 1113–1132. complementaries in senior leaders’ influence on CSR Strategy: a CEO-Top manage-
Ling, Y.A.N., Simsek, Z., Lubatkin, M.H., Veiga, J.F., 2008. Transformational leadership’s ment team approach. J. Bus. Ethics 151, 977–995.
role in promoting corporate entrepreneurship: examining CEO-TMT interface. Acad. Richard, O.C., Shelor, R., 2002. Linking top management team age heterogeneity to firm
Manag. J. 51, 557–576. performance: integrating two mid-range theories. Int. J. Hum. Resour. Manag. 13,
Lozano, J.F., Escrich, T., 2017. Cultural diversity in business: a critical reflection on the 958–974.
ideology of tolerance. J. Bus. Ethics 142 (4), 679–696. Richard, O.C., Barnett, T., Dwyer, S., Chadwick, K., 2004. Cultural diversity in manage-
Lyngsie, J., Foss, 2017. The more, the merrier? Women in top-management teams and ment, firm performance, and the moderating role of entrepreneurial orientation di-
entrepreneurship in established firms. Strateg. Manage. J. 38 (3), 487–505. mensions. Acad. Manag. J. 47, 255–266.
Mannix, E., Neale, M.A., 2005. What differences make a difference. Psychol. Sci. Public Richard, O.C., Murthi, B.P.S., Ismail, K., 2007. The impact of racial diversity on inter-
Interest 6, 31–55. mediate and long term performance: the moderating role of environmental context.
March, J.G., 1991. Exploration and exploitation in organizational learning. Organ. Sci. 2, Strateg. Manage. J. 28, 1213–1233.
71–87. Richard, O.C., Kirby, S.L., Chadwick, K., 2013. The impact of racial and gender diversity
Martinez-Costa, M., Jimenez-Jimenez, D., 2009. The effectiveness of TQM: the key role of in management on financial performance: how participative strategy making features
organizational learning in small businesses. Int. Small Bus. J. 27, 98–125. can unleash a diversity advantage. Int. J. Hum. Resour. Manag. 24, 2571–2582.
Maume, D.J., 2004. Is the glass ceiling a unique form of inequality? Evidence from a Ridgeway, C.L., 2011. Framed by Gender: How Gender Inequality Persists in the Modern
random-effects model of managerial attainment. Work Occup. 31, 250–274. World. Oxford University Press, New York.
McDougall, P.P., Oviatt, B.M., 1996. New venture internationalization, strategic change, Robinson, G., Dechant, K., 1997. Building a business case for diversity. Acad. Manag.
and performance: a follow-up study. J. Bus. Ventur. 11 (1), 23–40. Exec. 11, 21–31.
Menz, M., 2012. Functional top management team members: a review, synthesis, and Rothaermel, F.T., 2001. Incumbent’s advantage through exploiting complementary assets
research agenda. J. Manage. 38, 45–80. via interfirm cooperation. Strateg. Manage. J. 22, 687–699.
Miller, D., 1991. Stale in the saddle: CEO tenure and the match between organization and Rothaermel, F.T., Deeds, D.L., 2004. Exploration and exploitation alliances in bio-
environment. Manage. Sci. 37, 34–52. technology: a system of new product development. Strateg. Manage. J. 25, 201–221.
Miller, T., Triana, M., 2009. Demographic diversity in the boardroom: mediators of the Ruiz-Jimenez, J.M., Fuentes-Fuentes, M., 2016. Knowledge combination capability and
board diversity–firm performance relationship. J. Manag. Stud. 46, 755–786. innovation: the effects of gender diversity on top management teams in technology-
Miller, C.C., Burke, L.M., Glick, W.H., 1998. Cognitive diversity among upper-echelon based firms. J. Bus. Ethics 135, 503–515.
executives: implications for strategic decision processes. Strateg. Manage. J. 19, Rutherford, A., 2016. The effect of top-management team heterogeneity on performance
39–58. in institutions of higher education. Public Perform. Manag. Rev. 40 (1), 119–144 16.
Milliken, F.J., Martins, L.L., 1996. Searching for common threads: understanding the Schweiger, D.M., Sandberg, W.R., Ragan, J.W., 1996. Group approaches for improving
multiple effects of diversity in organizational groups. Acad. Manag. Rev. 21, strategic decision making: a comparative analysis of dialectical inquiry, devil’s ad-
402–433. vocacy, and consensus. Acad. Manag. J. 29, 51–72.

1692
M. Triana, et al. Research Policy 48 (2019) 1681–1693

Stettner, U., Lavie, D., 2014. Ambidexterity under scrutiny: exploration and exploitation networks, and exploratory innovation. Acad. Manag. J. 57, 484–514.
via internal organization, alliances, and acquisitions. Strateg. Manage. J. 35, Watson, W.E., Kumar, K., Michaelsen, L.K., 1993. Cultural diversity’s impact on inter-
1903–1929. action process and performance: comparing homogeneous and diverse task groups.
Tanikawa, T., Kim, S., Jung, Y., 2017. Top management team diversity and firm perfor- Acad. Manag. J. 36, 590–602.
mance: exploring a function of age. Team Perform. Manag. 23 (3/4), 156–170. Webber, S.S., Donahue, L.M., 2001. Impact of highly and less job-related diversity on
Thomas, D.A., Ely, R.J., 1996. Making differences matter: a new paradigm for managing workgroup cohesion and performance: a meta-analysis. J. Manage. 27, 141–162.
diversity. Harv. Bus. Rev. 74 (5), 79–90. Westphal, J.D., Milton, L.P., 2000. How experience and network ties affect the influence
Tihanyi, L., Ellstrand, A.E., Daily, C.M., Dalton, D.R., 2000. Composition of the top of demographic minorities on corporate boards. Adm. Sci. Q. 45, 366–398.
management team and firm international diversification. J. Manage. 26 (6), Wiersema, M.F., Bantel, K.A., 1992. Top management team demography and corporate
1157–1177. strategic change. Acad. Manag. J. 35, 91–121.
Toegel, G., 2011. Disappointing Statistics, Positive Outlook. February 18. Forbes. Williams, J.C., 2014. Hacking tech’s diversity problem. Harv. Bus. Rev. 92 (10), 94–100.
http://www.forbes.com/2011/02/18/women-business-management-forbes-woman- Williams, K., O’Reilly, C., 1998. Forty years of diversity research: a review. In: In: Staw,
leadershipcorporate-boards.html. B.M., Cummings, L.L. (Eds.), Research in Organizational Behavior, vol. 20. JAI Press,
Triana, M., Kirkman, B., Wagstaff, M.F., 2012. Does the order of face-to-face and com- Greenwich, CT, pp. 77–140.
puter-mediated communication matter in diverse project teams? An investigation of Wooldridge, J., 2002. Econometric Analysis of Cross-section and Panel Data. MIT Press,
communication order effects on minority inclusion and participation. J. Bus. Psychol. Cambridge, MA.
27, 57–70. Wooldridge, J.M., 2013. South-Western pub, Mason. Introductory Econometrics A
Triana, M., Miller, T., Trzebiatowski, T., 2014. The double-edged nature of board gender Modern Approach, 5th edition. .
diversity: diversity, firm performance, and the power of women directors as pre- World Economic Forum, 2016. Global Gender Gap Report 2016.
dictors of strategic change. Organ. Sci. 25, 609–632. World Economic Forum, 2017. Global Gender Gap Report 2017.
Triandis, H.C., Hall, E.R., Ewen, R.B., 1965. Member heterogeneity and dyadic creativity. World Economic Forum, 2018. Global Gender Gap Report 2018.
Hum. Relat. 18, 33–55. Yang, H., Lin, Z.J., Peng, M.W., 2011. Behind acquisitions of alliance partners: ex-
Twain, M., 1884. Reprinted by Amazon Kindle in 2012. The Innocents Abroad (1884). ploratory learning and network embeddedness. Acad. Manag. J. 54, 1069–1080.
van de ven, A.H., Poole, M.S., 2005. Alternative approaches for studying organizational Zajac, E.J., Kraatz, M.S., Bresser, R.K., 2000. Modeling the dynamics of strategic fit: a
change. Organ. Stud. 26, 1377–1404. normative approach to strategic change. Strateg. Manage. J. 21, 429–453.
van Knippenberg, D., Schippers, M.C., 2007. Work group diversity. Annu. Rev. Psychol. Zelechowski, D.D., Bilimoria, D., 2003. The experience of women corporate inside di-
58, 515–541. rectors on the boards of Fortune 1000 firms. Women Manag. Rev. 18, 376–381.
van Knippenberg, D., De Dreu, C.K., Homan, A.C., 2004. Work group diversity and group Zhang, Y., 2006. The presence of a separate COO/president and its impact on strategic
performance: an integrative model and research agenda. J. Appl. Psychol. 89, change and CEO dismissal. Strateg. Manage. J. 27, 283–300.
1008–1022. Zhang, Y., Rajagopalan, N., 2010. Once an outsider, always an outsider? CEO origin,
Wahid, A.S., 2018. J. Bus. Ethics. https://doi.org/10.1007/s10551-018-3785-6. strategic change, and firm performance. Strateg. Manage. J. 31, 334–346.
Wang, H., Choi, J., Li, J., 2008. Too little or too much? Untangling the relationship be- Zhang, W., Wang, S., Zhu, Y., Kim, K., 2018. The moderating effect of emotional in-
tween corporate philanthropy and firm financial performance. Organ. Sci. 19, telligence on the performance of top management team. International Journal of
143–159. Business and Public Administration 15 (1), 95–106.
Wang, C., Rodan, S., Fruin, M., Xu, X., 2014. Knowledge networks, collaboration

1693