Orlando C. Richard

CULTURAL DIVERSITY IN MANAGEMENT, FIRM PERFORMANCE, AND THE MODERATING ROLE OF ENTREPRENEURIAL ORIENTATION DIMENSIONS

Extending previous theorizing on cultural diversitys organizational effects by integrating value-in-diversity and social identity perspectives with the framework of Blaus (1977) theory of heterog...

Strategic human resource management effectiveness and firm performance

This study tests whether strategic human resource management (SHRM) effectiveness significantly affects organizational level outcomes. Using the resource-based view of the firm, this study examines the effective use of human capital on organizational performance. Further, the role that a contextual factor - capital intensity - plays in modelling is explored. Results show that SHRM effectiveness significantly reduces employee turnover and increases overall market performance assessment. However, SHRM effectiveness affected both firm productivity and return on equity only when moderated by capital intensity.

Gender diversity in management and firm performance: the influence of growth orientation and organizational culture ☆

Abstract This study examines the influence of gender diversity in management on firm performance. The management group examined was composed of all firm members considered to be managers and officials, a broader level of analysis than past management-level diversity research that has primarily focused on groups composed of top management team (TMT) members. Adopting contingency and configurational approaches, gender diversitys interactions with two key organizational variables—organizational culture and growth orientation—were evaluated against organizational-level performance measures. Supporting contingency theory and configurational theory, the results suggest that gender diversitys effects at the management level is conditional on, that is, moderated by, the firms strategic orientation, the organizational culture in which it resides, and/or the multivariate interaction among these variables. These findings help reconcile conflicting results of past diversity–performance research by suggesting that an appropriately configured and supportive organizational environment may need to be in place before the beneficial aspects of gender diversity can be fully realized.

Employing an Innovation Strategy in Racially Diverse Workforces Effects On Firm Performance

This study explored racial diversity’s influence on firm performance. A national sample of 177 banks was used to first test competing hypotheses supported by the resource-based view of the firm and social identity theory that posited positive and negative direct effects, respectively, of racial diversity on organizational performance. No support was found for either prediction. However, a contingency theory-based hypothesis was supported. A moderation effect indicated that racial diversity’s association with performance was contingent on firms’ level of innovation. Specifically, racial diversity enhanced performance for banks pursuing an innovation strategy, whereas for banks low in innovation, performance declined. The results suggest that a racially diverse workforce in conjunction with an innovation-focused business strategy may provide firms a competitive advantage. This study thus supports a contingency/resource-based perspective that states that racial diversity, as a knowledge-based resource, needs to be set in an appropriate context to fully realize its potential benefits.

Linking top management team age heterogeneity to firm performance: juxtaposing two mid-range theories

Previous research on top management team heterogeneity and firm performance has focused almost exclusively on the non-visible attributes (e.g. functional background, tenure) of cultural diversity as opposed to the visible attributes (e.g. age, race and gender). The few studies there are show inconsistent results. For example, most field work - consistent with social identity theory notions - shows that cultural diversity, in isolation has negative organizational consequences. Only a few laboratory studies, however - consistent with information and decision-making theories - show that diversity in groups relates to favourable organizational outcomes. As social identity theory suggests, we find that top management team (TMT) age heterogeneity, in isolation, relates negatively to return on assets. On sales growth (i.e. organizational growth), the relationship is positive, lending support for information and decision-making theories. However, we find a curvilinear relationship between TMT age heterogeneity and sales growth, supporting both the mid-range theories. More specifically, TMT age heterogeneity is positively related to sales growth at low and medium levels and negatively related to sales growth at high levels. In addition, results reveal that context moderates linear and non-linear relationships. The results provide evidence of the importance of cultural diversity in TMTs for competitive advantage but also suggest the complexities of increasing it to observe these benefits.

Exploring the performance effects of visible attribute diversity: the moderating role of span of control and organizational life cycle

Research on how cultural diversity – especially visible attributes such as race and gender – impacts organizational performance remains practically nonexistent. We examine the effect of racial diversity and gender diversity on firm performance utilizing a contingency framework. Empirical findings from a field study support the hypothesized contingent effects of an organizations structure, specifically managerial span of control, on both racial and gender diversitys pre-assumed benefits. In addition, the study highlights the role of life-cycle stage when modelling the diversity–performance relationship. Future research directions and managerial implications are discussed.

The impact of entrepreneurial orientation on firm performance: the role of CEO position tenure and industry tenure

The relationship between Entrepreneurial Orientation (EO) and firm performance, despite generating significant scholarly interest, has remained mixed. These results may be attributed, at least in part, to the failure to sufficiently examine the potential impact of top management characteristics. The present study investigates how CEO characteristics (i.e. CEO industry and position tenure), impact the relationship between EO and firm performance within a sample of 579 US banks. As predicted, some support for a positive EO to performance relationship was found. In addition, the results strongly support, as posited, that CEO industry tenure positively moderates, and CEO position tenure negatively moderates, the EO to performance relationship. We also report evidence supporting the effect of EO, configured with CEO position tenure and industry tenure on firm performance. Our study suggests the EO–performance relationship is more complex than previous studies indicate. Implications for future research and practice are provided.

Racial Diversity and Firm Performance The Mediating Role of Competitive Intensity

The authors examine the mediating role of competitive intensity in the relationship between managerial racial diversity and firm performance (i.e., market share gain and average stock return). Racial diversity relates to firm performance via firms’ capacity to compete intensively (i.e., to introduce new competitive actions frequently). An analysis reveals that environmental munificence moderates competitive intensity’s mediating effect: Racially diverse management groups compete more intensively and perform better when they compete in munificent environments. The authors also find support for a moderated mediation model that simultaneously tests all components of their framework.

The impact of racial and gender diversity in management on financial performance: how participative strategy making features can unleash a diversity advantage

How does racial and gender diversity in the management ranks affect the bottom line? Our findings indicate that participative strategy making (PSM) positively moderates the relationship between both racial and gender diversity in management and firm performance measured as return on assets. Specifically, PSM strengthens the positive relationship that exists between racial diversity in management and firm performance. Although no main effect is observed for gender diversity in management, our results reveal that gender diversity in management is positively related to performance when PSM is high. However, we find that gender diversity in management is negatively related to performance when PSM is low, while gender homogeneous management experience superior performance. We offer implications for diversity research to embrace and consider the role of PSM and ‘inclusiveness’.

Strategic alliance team diversity, coordination, and effectiveness

Drawing upon literatures on strategic alliances, teams, and diversity, we propose that strategic alliance team diversity warrants further examination. We suggest that strategic alliance team coordination moderates the relationship between strategic alliance team diversity and effectiveness. Specifically, we hypothesize that coordination strengthens the negative relationship between observable diversity characteristics of nationality and gender and team effectiveness. We also argue that coordination strengthens the positive relationship between nonobservable diversity characteristic of functional background and team effectiveness. Results from 109 team members, 44 team leaders, and 34 alliance executives involved with 44 strategic alliance teams in 15 firms partially support our hypotheses.