It Depends: Environmental Context and the Effects of Faultlines on Top Management Team Performance

References

• Agle BR, Mitchell RK, Sonnenfeld JA (1999) Who matters to CEOs? An investigation of stakeholder attributes and salience, corporate performance, and CEO values. Acad. Management J. 42(5):507–525.Crossref, Google Scholar
• Aiken LS, West SG, Reno RR (1991) Multiple Regression: Testing and Interpreting Interactions (Sage, Thousand Oaks, CA).Google Scholar
• Aldrich HE (1979) Organizations and Environments (Prentice-Hall, Englewood Cliffs, NJ).Google Scholar
• Baixauli-Soler JS, Sanchez-Marin G (2011) Organizational governance and TMT pay level adjustment. J. Bus. Res. 64(8):862–870.Crossref, Google Scholar
• Bantel KA, Jackson SE (1989) Top management and innovations in banking: Does the composition of the top team make a difference? Strategic Management J. 10(S1):107–124.Crossref, Google Scholar
• Barkema HG, Shvyrkov O (2007) Does top management team diversity promote or hamper foreign expansion. Strategic Management J. 28(7):663–680.Crossref, Google Scholar
• Barker VL, Patterson PW Jr (1996) Top management team tenure and top manager causal attributions at declining firms attempting turnarounds. Group Organ. Management 21(3):304–336.Crossref, Google Scholar
• Barnard CI (1938) The Functions of the Executive (Harvard University Press, Cambridge, MA).Google Scholar
• Barsade SG, Ward AJ, Turner JDF, Sonnenfeld JA (2000) To your heart’s content: A model of affective diversity in top management teams. Admin. Sci. Quart. 45(4):802–836.Crossref, Google Scholar
• Bascle G (2008) Controlling for endogeneity with instrumental variables in strategic management research. Strategic Organ. 6(3):285–327.Crossref, Google Scholar
• Bell ST, Villado AJ, Lukasik MA, Belau L, Briggs AL (2011) Getting specific about demographic diversity variable and team performance relationships: A meta-analysis. J. Management 37(3):709–743.Crossref, Google Scholar
• Berger PG, Ofek E (1995) Diversification’s effect on firm value. J. Financial Econom. 37(1):39–65.Crossref, Google Scholar
• Bezrukova K, Spell CS, Perry JL (2010) Violent splits or healthy divides? Coping with injustice through faultlines. Personnel Psych. 63(3):719–751.Crossref, Google Scholar
• Bezrukova K, Jehn KA, Zanutto EL, Thatcher SMB (2009) Do workgroup faultlines help or hurt? A moderated model of faultlines, team identification, and group performance. Organ. Sci. 20(1):35–50.Link, Google Scholar
• Bezrukova K, Thatcher SMB, Jehn KA, Spell CS (2012) The effects of alignments: Examining group faultlines, organizational cultures, and performance. J. Appl. Psych. 97(1):77–92.Crossref, Google Scholar
• Boyd B (1990) Corporate linkages and organizational environment: A test of the resource dependence model. Strategic Management J. 11(6):419–430.Crossref, Google Scholar
• Brewer MB (1979) In-group bias in the minimal intergroup situation: A cognitive-motivational analysis. Psych. Bull. 86(2):307–324.Crossref, Google Scholar
• Brocklebank JC, Dickey DA (2003) SAS for Forecasting Time Series (SAS Publishing, Cary, NC).Google Scholar
• Bunderson JS, Sutcliffe KM (2002) Comparing alternative conceptualizations of functional diversity in management teams: Process and performance effects. Acad. Management J. 45(5):875–893.Crossref, Google Scholar
• Bushman R, Dai Z, Wang X (2010) Risk and CEO turnover. J. Financial Econom. 96(3):381–398.Crossref, Google Scholar
• Byrne D (1971) The Attraction Paradigm (Academic Press, New York).Google Scholar
• Cannella AA, Park JH, Lee HU (2008) Top management team functional background diversity and firm performance: Examining the roles of team member colocation and environmental uncertainty. Acad. Management J. 51(4):768–784.Crossref, Google Scholar
• Cannon AR, St. John CH (2007) Measuring environmental complexity. Organ. Res. Methods 10(2):296–321.Crossref, Google Scholar
• Carpenter MA, Fredrickson JW (2001) Top management teams, global strategic posture, and the moderating role of uncertainty. Acad. Management J. 44(3):533–545.Crossref, Google Scholar
• Carpenter MA, Sanders WM (2002) Top management team compensation: The missing link between CEO pay and firm performance? Strategic Management J. 23(4):367–375.Crossref, Google Scholar
• Carpenter MA, Geletkanycz MA, Sanders WG (2004) Upper echelons research revisited: Antecedents, elements, and consequences of top management team composition. J. Management 30(6):749–778.Crossref, Google Scholar
• Carpenter MA, Pollock TG, Leary MM (2003) Testing a model of reasoned risk taking: Governance, the experience of principals and agents, and global strategy in high technology IPO firms. Strategic Management J. 24(9):803–820.Crossref, Google Scholar
• Carton AM, Cummings JN (2012) A theory of subgroups in work teams. Acad. Management Rev. 37(3):441–470.Crossref, Google Scholar
• Castrogiovanni GJ (1991) Environmental munificence: A theoretical assessment. Acad. Management Rev. 16(3):542–565.Google Scholar
• Certo ST, Lester RH, Dalton CM, Dalton DR (2006) Top management teams, strategy and financial Performance: A meta analytic examination. J. Management Stud. 43(4):813–839.Crossref, Google Scholar
• Cho TS, Shen W (2007) Changes in executive compensation following an environmental shift: The role of top management team turnover. Strategic Management J. 28(7):747–754.Crossref, Google Scholar
• Choi JN, Sy T (2010) Group-level organizational citizenship behavior: Effects of demographic faultlines and conflict in small work groups. J. Organ. Behav. 31(7):1032–1054.Google Scholar
• Clark PB, Wilson JQ (1961) Incentive systems: A theory of organizations. Admin. Sci. Quart. 6(2):129–166.Crossref, Google Scholar
• Cohen SG, Bailey DE (1997) What makes teams work: Group effectiveness research from the shop floor to the executive suite. J. Management 23(3):239–290.Crossref, Google Scholar
• Davidson R, Mackinnon J (1983) Estimation and Interference in Economics (Oxford University Press, New York).Google Scholar
• Dean JW Jr, Sharfman MP (1996) Does decision process matter? A study of strategic decision-making effectiveness. Acad. Management J. 39(2):368–396.Crossref, Google Scholar
• De Dreu CKW (2003) Time pressure and closing of the mind in negotiation. Organ. Behav. Human Decision Processes 91(2):280–295.Crossref, Google Scholar
• Dess GG, Beard DW (1984) Dimensions of organizational task environments. Admin. Sci. Quart. 29(1):52–73.Crossref, Google Scholar
• DiMaggio P, Powell W (1983) The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. Amer. Sociol. Rev. 48(2):147–160.Crossref, Google Scholar
• Dovidio JF, Gaertner SL, Validzic A (1998) Intergroup bias: Status, differentiation, and a common in-group identity. J. Personality Soc. Psych. 75(1):109–120.Crossref, Google Scholar
• Duncan R (1973) Multiple decision-making structures in adapting to environmental uncertainty: The impact on organizational effectiveness. Human Relations 26(3):273–291.Crossref, Google Scholar
• Earley PC, Mosakowski E (2000) Creating hybrid team cultures: An empirical test of transnational team functioning. Acad. Management J. 43(1):26–49.Crossref, Google Scholar
• Eisenhardt KM, Bourgeois LJ (1988) Politics of strategic decision making in high-velocity environments: Toward a midrange theory. Acad. Management J. 31(4):737–770.Crossref, Google Scholar
• Eisenhardt KM, Furr NR, Bingham CB (2010) Microfoundations of performance: Balancing efficiency and flexibility in dynamic environments. Organ. Sci. 21(6):1263–1275.Link, Google Scholar
• Emery F, Trist E (1965) The causal texture of organizational environments. Human Relations 18(1):21–32.Crossref, Google Scholar
• Esses VM, Dovidio JF, Jackson LM, Armstrong TL (2001) The immigration dilemma: The role of perceived group competition, ethnic prejudice, and national identity. J. Soc. Issues 57(3):389–412.Crossref, Google Scholar
• Evans DS (1987) The relationship between firm growth, size, and age: Estimates for 100 manufacturing industries. J. Indust. Econom. 35(4):567–581.Crossref, Google Scholar
• Gaertner SL, Dovidio JF (2000) Reducing Intergroup Bias: The Common Ingroup Identity Model (Psychology Press, Philadelphia).Google Scholar
• Gibson C, Vermeulen F (2003) A healthy divide: Subgroups as a stimulus for team learning behavior. Admin. Sci. Quart. 48(2):202–239.Crossref, Google Scholar
• Gratton L, Voigt A, Erickson TJ (2007) Bridging faultlines in diverse teams. MIT Sloan Management Rev. 48(4):22–29.Google Scholar
• Greening DW, Johnson RA (1997) Managing industrial and environmental crises: The role of heterogeneous top management teams. Bus. Soc. 36(4):334–361.Crossref, Google Scholar
• Hall BH (1993) The stock market’s valuation of R&D investment during the 1980’s. Amer. Econom. Rev. 83(2):259–264.Google Scholar
• Hart CM, Van Vugt M (2006) From faultline to group fission: Understanding membership changes in small groups. Personality Soc. Psych. Bull. 32(3):392–404.Crossref, Google Scholar
• Heeley MB, King DR, Covin JG (2006) Effects of firm R&D investment and environment on acquisition likelihood. J. Management Stud. 43(7):1513–1535.Crossref, Google Scholar
• Henderson AD, Fredrickson JW (1996) Information-processing demands as a determinant of CEO compensation. Acad. Management J. 39(3):575–606.Crossref, Google Scholar
• Hogg MA, Terry DJ (2000) Social identity and self-categorization processes in organizational contexts. Acad. Management Rev. 25(1):121–140.Crossref, Google Scholar
• Hogg MA, Terry DJ (2001) Social identity theory and organizational processes. Hogg MA, Terry DJ, eds. Social Identity Processes in Organizational Contexts (Psychology Press, Philadelphia), 1–12.Google Scholar
• Hogg MA, Terry DJ, White KM (1995) A tale of two theories: A critical comparison of identity theory with social identity theory. Soc. Psych. Quart. 58(4):255–269.Crossref, Google Scholar
• Homan AC, van Knippenberg D, Van Kleef GA, De Dreu CKW (2007) Bridging faultlines by valuing diversity: Diversity beliefs, information elaboration, and performance in diverse work groups. J. Appl. Psych. 92(5):1189–1199.Crossref, Google Scholar
• Homan AC, Hollenbeck JR, Humphrey SE, van Knippenberg D, Ilgen DR, Van Kleef GA (2008) Facing differences with an open mind: Openness to experience, salience of intragroup differences, and performance of diverse work groups. Acad. Management J. 51(6):1204–1222.Crossref, Google Scholar
• Hornsey MJ, Hogg MA (1999) Subgroup differentiation as a response to an overly-inclusive group: A test of optimal distinctiveness theory. Eur. J. Soc. Psych. 29(4):543–550.Crossref, Google Scholar
• Hornsey MJ, Hogg MA (2000a) Assimilation and diversity: An integrative model of subgroup relations. Personality Soc. Psych. Rev. 4(2):143–156.Crossref, Google Scholar
• Hornsey MJ, Hogg MA (2000b) Subgroup relations: A comparison of mutual intergroup differentiation and common ingroup identity models of prejudice reduction. Personality Soc. Psych. Bull. 26(2):242–256.Crossref, Google Scholar
• Hylleberg S (1992) The X-11 Method in Modeling Seasonality (Oxford University Press, Oxford, UK).Google Scholar
• Jackson JW (2001) Effects of endowment amount and attributions on responses to a subgroup social dilemma. Group Dynamics: Theory, Research, Practice 5(2):67–80.Crossref, Google Scholar
• Jehn KA, Northcraft GB, Neale MA (1999) Why differences make a difference: A field study of diversity, conflict, and performance in workgroups. Admin. Sci. Quart. 44(4):741–764.Crossref, Google Scholar
• Joshi A, Roh H (2009) The role of context in work team diversity research: A meta-analytic review. Acad. Management J. 52(3):599–627.Crossref, Google Scholar
• Judge WQ, Miller A (1991) Antecedents and outcomes of decision speed in different environmental contexts. Acad. Management J. 34(2):449–463.Crossref, Google Scholar
• Kaplan SN, Minton BA (2012) How has CEO turnover changed? Internat. Rev. Finance 12(1):57–87.Crossref, Google Scholar
• Keats BW, Hitt MA (1988) A causal model of linkages among environmental dimensions, macro organizational characteristics, and performance. Acad. Management J. 31(3):570–598.Crossref, Google Scholar
• Keck SL (1997) Top management team structure: Differential effects by environmental context. Organ. Sci. 8(2):143–156.Link, Google Scholar
• Klapper LF, Love I (2004) Corporate governance, investor protection, and performance in emerging markets. J. Corporate Finance 10(5):703–728.Crossref, Google Scholar
• Kotha S, Nair A (1995) Strategy and environment as determinants of performance: Evidence from the Japanese machine tool industry. Strategic Management J. 16(7):497–518.Crossref, Google Scholar
• Krishnan HA, Miller A, Judge WQ (1997) Diversification and top management team complementarity: Is performance improved by merging similar or dissimilar teams? Strategic Management J. 18(5):361–374.Crossref, Google Scholar
• Lau DC, Murnighan JK (1998) Demographic diversity and faultlines: The compositional dynamics of organizational groups. Acad. Management Rev. 23(2):325–340.Crossref, Google Scholar
• Lau DC, Murnighan JK (2005) Interactions within groups and subgroups: The effects of demographic faultlines. Acad. Management J. 48(4):645–659.Crossref, Google Scholar
• Lawrence PR, Lorsch JW (1967) Differentiation and integration in complex organizations. Admin. Sci. Quart. 12(1):1–47.Crossref, Google Scholar
• Li J, Hambrick DC (2005) Factional groups: A new vantage on demographic faultlines, conflict, and disintegration in work teams. Acad. Management J. 48(5):794–813.Crossref, Google Scholar
• March JG, Simon HA (1958) Organizations (John Wiley & Sons, New York).Google Scholar
• Mehran H (1995) Executive compensation structure, ownership, and firm performance. J. Financial Econom. 38(2):163–184.Crossref, Google Scholar
• Michel JG, Hambrick DC (1992) Diversification posture and top management team characteristics. Acad. Management J. 35(1):9–37.Crossref, Google Scholar
• Miller CC, Ogilvie D, Glick WH (2006) Assessing the external environment: An enrichment of the archival tradition. Ketchen DJ, Bergh DD, eds. Research Methodology in Strategy and Management (Emerald, Bingley, UK), 97–122.Crossref, Google Scholar
• Milliken FJ, Martins LL (1996) Searching for common threads: Understanding the multiple effects of diversity in organizational groups. Acad. Management Rev. 21(2):402–433.Crossref, Google Scholar
• Molleman E (2005) Diversity in demographic characteristics, abilities and personality traits: Do faultlines affect team functioning? Group Decision Negotiation 14(3):173–193.Crossref, Google Scholar
• Moreland RL, Argote L, Krishnan R, Nye JL, Brower AM (1996) Socially shared cognition at work: Transactive memory and group performance. What’s Social About Social Cognition? Research on Socially Shared Cognition in Small Groups (Sage, Thousand Oaks, CA), 57–84.Crossref, Google Scholar
• Mottola GR, Bachman BA, Gaertner SL, Dovidio JF (1997) How groups merge: The effects of merger integration patterns on anticipated commitment to the merged organization. J. Appl. Soc. Psych. 27(15):1335–1358.Crossref, Google Scholar
• Mullen B, Brown R, Smith C (1992) Ingroup bias as a function of salience, relevance, and status: An integration. Eur. J. Soc. Psych. 22(2):103–122.Crossref, Google Scholar
• Nishii LH, Goncalo JA (2008) Demographic faultlines and creativity in groups. Phillips KW, Mannix EA, Neale M, eds. Diversity and Groups, Research on Managing Groups and Teams, Vol. 11 (Emerald, Bingley, UK), 1–26.Crossref, Google Scholar
• O’Brien RM (2007) A caution regarding rules of thumb for variance inflation factors. Quality Quantity 41(5):673–690.Crossref, Google Scholar
• O’Leary MB, Mortensen M (2010) Go (con)figure: Subgroups, imbalance, and isolates in geographically dispersed teams. Organ. Sci. 21(1):115–131.Link, Google Scholar
• Ormiston ME, Wong EM (2012) The gleam of the double-edged sword: The benefits of subgroups for organizational ethics. Psych. Sci. 23(4):400–403.Crossref, Google Scholar
• Orton JD, Weick KE (1990) Loosely coupled systems: A reconceptualization. Acad. Management Rev. 59(2):203–223.Crossref, Google Scholar
• Palich LE, Cardinal LB, Miller CC (2000) Curvilinearity in the diversification–performance linkage: An examination of over three decades of research. Strategic Management J. 21(2):155–174.Crossref, Google Scholar
• Pearsall MJ, Ellis APJ, Evans JM (2008) Unlocking the effects of gender faultlines on team creativity: Is activation the key. J. Appl. Psych. 93(1):225–234.Crossref, Google Scholar
• Phillips KW (2003) The effects of categorically based expectations on minority influence: The importance of congruence. Personality Soc. Psych. Bull. 29(1):3–13.Crossref, Google Scholar
• Phillips KW, Loyd D (2006) When surface and deep-level diversity collide: The effects on dissenting group members. Organ. Behav. Human Decision Processes 99(2):143–160.Crossref, Google Scholar
• Phillips KW, Mannix EA, Neale MA, Gruenfeld DH (2004) Diverse groups and information sharing: The effects of congruent ties. J. Experiment. Soc. Psych. 40(4):497–510.Crossref, Google Scholar
• Polzer JT, Crisp CB, Jarvenpaa SL, Kim JW (2006) Extending the faultline model to geographically dispersed teams: How colocated subgroups can impair group functioning. Acad. Management J. 49(4):679–692.Crossref, Google Scholar
• Rink F, Ellemers N (2006) What can you expect? The influence of gender diversity in dyads on work goal expectancies and subsequent work commitment. Group Processes Intergroup Relations 9(4):577–588.Crossref, Google Scholar
• Rink R, Ellemers N (2010) Benefiting from deep-level diversity: How congruence between knowledge and decision rules improves team decision making and team perceptions. Group Processes Intergroup Relations 13(3):345–359.Crossref, Google Scholar
• Särndal CE, Swensson B, Wretman J (2003) Model Assisted Survey Sampling (Springer-Verlag, New York).Google Scholar
• Scott WR (2003) Organizations: Rational, Natural, and Open Systems (Prentice-Hall, Englewood Cliffs, NJ).Google Scholar
• Sharfman MP, Dean JW (1991) Conceptualizing and measuring the organizational environment: A multidimensional approach. J. Management 17(4):681–700.Crossref, Google Scholar
• Simons T, Pelled LH, Smith KA (1999) Making use of difference: Diversity, debate, and decision comprehensiveness in top management teams. Acad. Management J. 42(6):662–673.Crossref, Google Scholar
• Stasser G, Stewart DD, Wittenbaum GM (1995) Expert roles and information exchange during discussion: The importance of knowing who knows what. J. Experiment. Soc. Psych. 31(3):244–265.Crossref, Google Scholar
• Stock JH, Yogo M (2005) Asymptotic distributions of instrumental variables statistics with many instruments. Andrews DWK, Stock JH, eds. Identification and Inference for Econometric Models: Essays in Honor of Thomas Rothenberg (Cambridge University Press, New York), 109–120.Crossref, Google Scholar
• Tajfel H, Turner JC (1979) An integrative theory of intergroup conflict. Austin WG, Worchel S, eds. The Social Psychology of Intergroup Relations (Brooks/Cole, Monterey, CA), 33–47.Google Scholar
• Tegarden DP, Tegarden LF, Sheetz SD (2009) Cognitive factions in a top management team: Surfacing and analyzing cognitive diversity using causal maps. Group Decision Negotiation 18(6):537–566.Crossref, Google Scholar
• Thatcher SM, Patel PC (2011) Demographic faultlines: A meta-analysis of the literature. J. Appl. Psych. 96(6):1119–1139.Crossref, Google Scholar
• Thatcher SM, Patel PC (2012) Group faultlines: A review, integration, and guide to future research. J. Management 38(4):969–1009.Crossref, Google Scholar
• Thatcher SM, Jehn KA, Zanutto E (2003) Cracks in diversity research: The effects of diversity faultlines on conflict and performance. Group Decision Negotiation 12(3):217–241.Crossref, Google Scholar
• Thompson JD (1967) Organizations in Action (McGraw Hill, New York).Google Scholar
• Tosi HL (1984) Theories of Organization (John Wiley & Sons, New York).Google Scholar
• Tuggle CS, Schnatterly K, Johnson RA (2010) Attention patterns in the boardroom: How board composition and processes affect discussion of entrepreneurial issues. Acad. Management J. 53(3):550–571.Crossref, Google Scholar
• Tung RL (1979) Dimensions of organizational environment: An exploratory study of their impact on organizational structure. Acad. Management J. 22(4):672–693.Crossref, Google Scholar
• Turner JC (1985) Social categorization and the self-concept: A social cognitive theory of group behavior. Lawler EJ, ed. Advances in Group Processes: Theory and Research, Vol. 2 (JAI Press, Greenwich, CT), 77–122.Google Scholar
• Turner JC (1999) Some current issues in research on social identity and self-categorization theories. Ellemers N, Spears R, Doosje B, eds. Social Identity: Context, Commitment, Content, (Blackwell, Oxford, UK), 6–34.Google Scholar
• Turner JC, Reynolds KJ (1987) A self-categorization theory. Handbook of Theories of Social Psychology: Volume Two (Sage, London), 399–417.Google Scholar
• van Knippenberg D, Schippers MC (2007) Work group diversity. Annual Rev. Psych. 58:515–541.Crossref, Google Scholar
• van Knippenberg D, De Dreu CK, Homan AC (2004) Work group diversity and group performance: An integrative model and research agenda. J. Appl. Psych. 89(6):1008–1022.Crossref, Google Scholar
• van Knippenberg D, Dawson JF, West MA, Homan AC (2011) Diversity faultlines, shared objectives, and top management team performance. Human Relations 64(3):307–336.Crossref, Google Scholar
• Waller MJ (1999) The timing of adaptive group responses to nonroutine events. Acad. Management J. 42(2):127–137.Crossref, Google Scholar
• Wernerfelt B, Montgomery CA (1988) Tobin’s q and the importance of focus in firm performance. Amer. Econom. Rev. 78(1):246–250.Google Scholar
• Wholey DR, Brittain J (1989) Characterizing environmental variation. Acad. Management J. 32(4):867–882.Crossref, Google Scholar
• Wiersema MF, Bantel KA (1992) Top management team demography and corporate strategic change. Acad. Management J. 35(1):91–121.Crossref, Google Scholar
• Wooldridge JM (2002) Econometric Analysis of Cross Section and Panel Data (MIT Press, Cambridge, MA).Google Scholar
• Yuchtman E, Seashore S (1967) A system resource approach to organizational effectiveness. Amer. Sociol. Rev. 32(6):891–903.Crossref, Google Scholar