Age matters: Top management team demographic faultlines and firm performance
Type
conference paper
Date Issued
2008-08-11
Author(s)
Abstract
This study applies the group faultlines model (Lau & Murnighan, 1998) to the upper echelons framework, and provides evidence of how to achieve higher levels of firm performance through effective management of the interactions between demographic traits and structural configuration (i.e., dispersion and alignment) of a diverse team. Using a sample of 602 executives from 96 Swiss large firms, we find that demographic faultlines have a negative impact on firm performance and that top management team (TMT) average age has a curvilinear impact on firm performance. Our study also suggests that there may be joint effects of certain demographic traits and overall team composition: older executives, in addition to their independent association to firm performance, are also better able to enhance firm performance given certain faultline setting, which by itself has a negative impact on firm performance.
Language
English
Keywords
top management teams
group faultlines
firm performance
HSG Classification
contribution to scientific community
Refereed
Yes
Start page
38
Event Title
Academy of Management Annual Meeting (AOM) 2008
Event Location
Anaheim, CA
Event Date
08.-13.08.2008
Subject(s)
Eprints ID
45314