An Empirical Study on Functional Diversity and Innovation in Smes

Functional diversity among managerial teams can foster innovation. This empirical study considers two types of function diversities: dominant function diversity, which measures the range of function specialization available across the top management team, and intrapersonal function diversity, which measures the range of function experience within each individual in the management team. Data collected from small and medium-sized enterprises in Singapore show that intrapersonal function diversity has a positive impact on innovation, but that this impact is reduced for bigger firms. Dominant function diversity has a negative effect on innovation for firms that are growing