Boundary conditions of a curvilinear relationship between decision comprehensiveness and performance: The role of functional and national diversity

Rebecca Mitchell, Brendan Boyle, Stephen Nicholas, Elizabeth Maitland, Shuming Zhao

Research output: Contribution to journalArticlepeer-review

13 Citations (Scopus)

Abstract

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.
Original languageEnglish
Pages (from-to)2801-2811
Number of pages11
JournalJournal of Business Research
Volume69
Issue number8
DOIs
Publication statusPublished - Aug 2016
Externally publishedYes

Keywords

  • Decision comprehensiveness
  • Team dynamics
  • Top management team
  • National diversity

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