An Examination of the Antecedents of TMT Global Diversity

Abstract

We examine a growing trend in organizations today: TMT global diversity. Researchers have found that if managed properly, TMT global diversity can have positive effects such as stronger performance. Surprisingly, scant attention has been paid to what affects TMT global diversity. Given its positive effects, we argue that understanding better the conditions and factors that affect TMT global diversity will be a worthwhile contribution to the research stream. Thus, we develop a theoretical model that addresses this question and it includes four main antecedents to TMT global diversity: the degree of the firm international diversification, the firm’s past performance, the international experience of the CEO, and the global diversity of Board of Directors. Understanding the antecedents of TMT global diversity should help shed light on what levers might be used to improve global diversity in situations where global diversity might lead to stronger effects on the firm.

Keywords: Global Executive Teams, Diverse Teams, Top Management Teams, Behavioral Theory, Cognitive Perspectives, Boards of Directors, Compensation, Bonuses, Coordination/Mgmt Multinational Firms, Corporate Governance, Decision Making, Diversification, Global Strategy, International Diversification