The Antecedents of Innovation Performance– The Moderating Role of Top Management Team Diversity

Abstract

Purpose – The purpose of this paper is to investigate why firms engaged in R&D investment and international diversification produce different results in innovation performance. Design/methodology/approach – This study is based on a sample of 283 Taiwanese manufacturing firms in the information technology industry. Findings – The findings showed that in the top management teams (TMTs) with greater tenure diversity there was a stronger relationship between R&D investment and innovation performance. In addition, the TMTs with greater educational diversity enhanced the relationship between international diversification and innovation performance. Originality/value – This study stresses the vital role of TMT diversity in resource allocation and information processing during the process of innovation. The authors examined the critical role of TMT educational diversity in bringing a wider range of network resources and the role of TMT tenure diversity in the allocation of firm-specific resources. The TMT diversity causes firms to experience different innovation results during the innovation process.