{"title":"Top management team diversity and firm performance: exploring a function of age","authors":"Tomohiko Tanikawa, Soyeon Kim, Yuhee Jung","doi":"10.1108/TPM-06-2016-0027","DOIUrl":null,"url":null,"abstract":"Purpose \n \n \n \n \nBased on socioemotional selectivity theory, the authors aimed to develop and test hypotheses that identify the direct effect of top management team (TMT) age diversity on firms’ financial performance (return on equity [ROE], return on assets [ROA]) and the interactive effect of TMT age diversity and TMT average age on firms’ financial performance. \n \n \n \n \nDesign/methodology/approach \n \n \n \n \nThe paper presents results from a quantitative study of 867 TMTs in Korean manufacturing firms. Multiple hierarchical regression analysis was used to test the hypotheses. \n \n \n \n \nFindings \n \n \n \n \nThe results show that TMT age diversity had a negative and significant main effect on ROE but not on ROA. They also indicate that the negative relationship between TMT age diversity and firm performance (ROE) was attenuated when the members of TMTs were relatively older. \n \n \n \n \nOriginality/value \n \n \n \n \nFirst, this study extends existing TMT research, which mainly focuses on macro factors, such as industry and environment, by using micro factors, including TMT age diversity and TMT average age. Second, this paper combines and extends previous TMT studies, which have been dominated by either “property” or “tendency”, by examining the interactive effect of the distributional property (diversity) and central tendency (average) of TMT age on firms’ financial performance. Finally, this study indicates that socioemotional selectivity theory may be useful to explain the link between TMT age diversity and firms’ financial performance.","PeriodicalId":46084,"journal":{"name":"Team Performance Management","volume":"23 1","pages":"156-170"},"PeriodicalIF":1.6000,"publicationDate":"2017-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/TPM-06-2016-0027","citationCount":"30","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Team Performance Management","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/TPM-06-2016-0027","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 30
Abstract
Purpose
Based on socioemotional selectivity theory, the authors aimed to develop and test hypotheses that identify the direct effect of top management team (TMT) age diversity on firms’ financial performance (return on equity [ROE], return on assets [ROA]) and the interactive effect of TMT age diversity and TMT average age on firms’ financial performance.
Design/methodology/approach
The paper presents results from a quantitative study of 867 TMTs in Korean manufacturing firms. Multiple hierarchical regression analysis was used to test the hypotheses.
Findings
The results show that TMT age diversity had a negative and significant main effect on ROE but not on ROA. They also indicate that the negative relationship between TMT age diversity and firm performance (ROE) was attenuated when the members of TMTs were relatively older.
Originality/value
First, this study extends existing TMT research, which mainly focuses on macro factors, such as industry and environment, by using micro factors, including TMT age diversity and TMT average age. Second, this paper combines and extends previous TMT studies, which have been dominated by either “property” or “tendency”, by examining the interactive effect of the distributional property (diversity) and central tendency (average) of TMT age on firms’ financial performance. Finally, this study indicates that socioemotional selectivity theory may be useful to explain the link between TMT age diversity and firms’ financial performance.
期刊介绍:
This international journal contributes to the successful implementation and development of work teams and team-based organizations by providing a forum for sharing experience and learning to stimulate thought and transfer of ideas. It seeks to bridge the gap between research and practice by publishing articles where the claims are evidence-based and the conclusions have practical value. Effective teams form the heart of every successful organization. But team management is one of the hardest challenges faced by managers.