The impact of nationality diversity in top management teams on cross-border mergers and acquisition performance
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2024-06-27
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en
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Whereas the majority of research on top management team (TMT) diversity explores the direct relationship between gender diversity and firm performance, this study investigates how national diversity in TMTs is related to its cross-border merger and acquisition (CBMA) performance. Numerous scholars have concluded that firm performance, in terms of the consequences of TMT heterogeneity, have been inconclusive. This study conducts an analysis of how national diversity in TMTs is fruitful when firms are dedicated to foreign markets. Conducting multiple constructs to operationalise TMT national diversity and including different types of experiences that are related to the M&A field. In total 1383 cross-border M&A deals worldwide, between 1997 – 2019, were analysed. The results show insignificant effects of nationality diversity on the acquirer’s CBMA performance. There is weak evidence that nationality diversity is significantly affecting the performance but that other external factors are more influential. Despite the lack of significant results diversity in TMTs has various outcomes of the firm’s practices but also because it is socially desirable.
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Faculteit der Managementwetenschappen