TY - JOUR
T1 - Top management team diversity and firm performance: Empirical evidence from the fashion and luxury industry
AU - Cambrea, Domenico Rocco
AU - Lussana, Giorgia
AU - Quarato, Fabio
AU - Varacca Capello, Paola
PY - 2017
Y1 - 2017
N2 - The purpose of this study is to advance the current understanding
of the relationship between top management team (TMT) diversity
and firm performance in the fashion and luxury industries.
Predictions from the relevant theoretical perspectives – namely,
Upper Echelons and Social Psychology theories – are often
conflicting, and the controversial nature of this phenomenon
together with the lack of empirical studies in the fashion and
luxury industries have inspired the research question to
investigate the link between TMT diversity and firm performance.
Moreover, this is even more relevant in a setting where human
capital management is one of the main keys to the long-term
survival of fashion and luxury brands. To this extent, a principal
component analysis and subsequent regression analyses have been
performed on a sample of 78 listed companies operating in the
fashion and luxury industries, over the five-year period 2011-2015.
Results indicate that TMTs with greater gender, international
experience, and educational background diversity are positively
associated with higher firm performance. Hence, we found support
for the Upper Echelons Theory, which predicts organizational
outcomes as a function of managerial characteristics, thus offering
few practical implications for companies operating in these
industries.
AB - The purpose of this study is to advance the current understanding
of the relationship between top management team (TMT) diversity
and firm performance in the fashion and luxury industries.
Predictions from the relevant theoretical perspectives – namely,
Upper Echelons and Social Psychology theories – are often
conflicting, and the controversial nature of this phenomenon
together with the lack of empirical studies in the fashion and
luxury industries have inspired the research question to
investigate the link between TMT diversity and firm performance.
Moreover, this is even more relevant in a setting where human
capital management is one of the main keys to the long-term
survival of fashion and luxury brands. To this extent, a principal
component analysis and subsequent regression analyses have been
performed on a sample of 78 listed companies operating in the
fashion and luxury industries, over the five-year period 2011-2015.
Results indicate that TMTs with greater gender, international
experience, and educational background diversity are positively
associated with higher firm performance. Hence, we found support
for the Upper Echelons Theory, which predicts organizational
outcomes as a function of managerial characteristics, thus offering
few practical implications for companies operating in these
industries.
KW - Top Management Team, Fashion and Luxury, Upper Echelon Theory, Diversity, Firm Performance
KW - Top Management Team, Fashion and Luxury, Upper Echelon Theory, Diversity, Firm Performance
UR - http://hdl.handle.net/10807/151429
U2 - 10.22495/cocv15i1c2p2
DO - 10.22495/cocv15i1c2p2
M3 - Article
SN - 1727-9232
VL - 15
SP - 325
EP - 340
JO - CORPORATE OWNERSHIP & CONTROL
JF - CORPORATE OWNERSHIP & CONTROL
ER -