- Title
- Boundary conditions of a curvilinear relationship between decision comprehensiveness and performance: the role of functional and national diversity
- Creator
- Mitchell, Rebecca; Boyle, Brendan; Nicholas, Stephen; Maitland, Elizabeth; Zhao, Shuming
- Relation
- Journal of Business Research Vol. 69, Issue 8, p. 2801-2811
- Publisher Link
- http://dx.doi.org/10.1016/j.jbusres.2015.12.049
- Publisher
- Elsevier
- Resource Type
- journal article
- Date
- 2016
- Description
- This research examines top management team (TMT) functional and national diversity as moderators of a curvilinear relationship between decision comprehensiveness and organizational performance. Drawing on resource allocation theory, we argue that, despite the information-related benefits associated with decision comprehensiveness, the misallocation of limited TMT cognitive resources can generate an inverted U-shaped effect on performance. We hypothesize that functional and national diversity moderate this non-linear relationship, such that the impact of decision comprehensiveness in diverse teams will be significantly weaker than in their homogenous counterparts. Results from a sample of subsidiary TMTs of multinational companies (N = 107) in China support the study hypotheses. We find evidence that decision comprehensiveness has no significant effect on performance for diverse TMTs. However, as hypothesized, we find support for a positive effect of decision comprehensiveness on organizational performance in relatively homogeneous TMTs up to an inflection point, beyond which the relationship becomes negative.
- Subject
- decision comprehensiveness; team dynamics; top management team; national diversity
- Identifier
- http://hdl.handle.net/1959.13/1328255
- Identifier
- uon:25852
- Identifier
- ISSN:0148-2963
- Language
- eng
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