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Product innovation and educational diversity in top and middle management teams

Schubert, Torben LU and Tavassoli, Sam LU (2020) In Academy of Management Journal 63(1). p.272-294
Abstract

The effects of diversity in management teams on firm innovation have become an important topic in strategic management. With a few exceptions, however, the literature has focused on diversity in top management teams (TMTs), while the role of diversity in lower management levels, particularly middle management teams (MMTs), has usually been neglected. In this paper, we intend to fill this gap by explicitly differentiating between the effects of diversity in TMTs and MMTs. By matching various firm-level and individual-level datasets, we compile a linked employer–employee panel dataset for Sweden for the period 2004–2012. Focusing on measures of educational diversity, we find that the effects differ considerably between MMTs and TMTs.... (More)

The effects of diversity in management teams on firm innovation have become an important topic in strategic management. With a few exceptions, however, the literature has focused on diversity in top management teams (TMTs), while the role of diversity in lower management levels, particularly middle management teams (MMTs), has usually been neglected. In this paper, we intend to fill this gap by explicitly differentiating between the effects of diversity in TMTs and MMTs. By matching various firm-level and individual-level datasets, we compile a linked employer–employee panel dataset for Sweden for the period 2004–2012. Focusing on measures of educational diversity, we find that the effects differ considerably between MMTs and TMTs. TMTs’ diversity determines whether firms engage in innovation activities at all, while MMTs’ diversity affects the actual outcome of innovation processes, in particular successful product innovations and their degree of market novelty.

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author
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organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Academy of Management Journal
volume
63
issue
1
pages
23 pages
publisher
Academy of Management
external identifiers
  • scopus:85084056338
ISSN
0001-4273
DOI
10.5465/amj.2017.0741
language
English
LU publication?
yes
id
165120ff-9d38-483c-9b1e-1866d7625a27
date added to LUP
2020-05-14 16:30:08
date last changed
2024-01-17 01:47:41
@article{165120ff-9d38-483c-9b1e-1866d7625a27,
  abstract     = {{<p>The effects of diversity in management teams on firm innovation have become an important topic in strategic management. With a few exceptions, however, the literature has focused on diversity in top management teams (TMTs), while the role of diversity in lower management levels, particularly middle management teams (MMTs), has usually been neglected. In this paper, we intend to fill this gap by explicitly differentiating between the effects of diversity in TMTs and MMTs. By matching various firm-level and individual-level datasets, we compile a linked employer–employee panel dataset for Sweden for the period 2004–2012. Focusing on measures of educational diversity, we find that the effects differ considerably between MMTs and TMTs. TMTs’ diversity determines whether firms engage in innovation activities at all, while MMTs’ diversity affects the actual outcome of innovation processes, in particular successful product innovations and their degree of market novelty.</p>}},
  author       = {{Schubert, Torben and Tavassoli, Sam}},
  issn         = {{0001-4273}},
  language     = {{eng}},
  month        = {{02}},
  number       = {{1}},
  pages        = {{272--294}},
  publisher    = {{Academy of Management}},
  series       = {{Academy of Management Journal}},
  title        = {{Product innovation and educational diversity in top and middle management teams}},
  url          = {{http://dx.doi.org/10.5465/amj.2017.0741}},
  doi          = {{10.5465/amj.2017.0741}},
  volume       = {{63}},
  year         = {{2020}},
}