Management

TOP MANAGEMENT TEAM DIVERSITY, GROUP PROCESS, AND STRATEGIC CONSENSUS

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This study integrated concepts from upper echelons, group process and social cognition theories
to investigate how demographic diversity and group processes influence strategic consensus
within the top management team (TMT), where strategic consensus is defined as the degree to
which individual mental models of strategy overlap. Data from 76 high-technology firms in the
United States and Ireland were used to examine three alternative models. The results showed
that while demographic diversity alone did have effects on strategic consensus the overall fit
of the model was not strong. Adding two intervening group process variables, interpersonal
conflict and agreement-seeking, to the model greatly improved the overall relationship with
strategic consensus. For the most part, TMT diversity had negative effects on strategic consensus.
The model with superior fit showed both direct and indirect effects of diversity on strategic
consensus. Copyright Ó 1999 John Wiley & Sons, Ltd.

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Series Title

TOP MANAGEMENT TEAM DIVERSITY, GROUP PROCESS, AND STRATEGIC CONSENSUS

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Publisher

: Strategic Management Journal., 1999

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Language

English

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Classification

NONE

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Edition

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Subject(s)

strategic Management

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