Performance gains through diverse top management teams

Emerging and future changes in workforce diversity have caused a need to examine the potential impact of these changes on all areas of the firm. One area of special interest is that of top management team (TMT) diversity. With more diverse TMTs on the horizon, there is potential for both conflict and performance gains as a result of increased diversity at the highest levels of organizations. This paper examines diversity in top management teams and the potential impact of TMT diversity upon firm performance. Issues surrounding TMTs, upper echelon theory, and team heterogeneity are examined and propositions are offered as potential avenues for empirical research. Managerial implications and future research directions are also discussed.