The impact of racial and gender diversity in management on financial performance: How participative strategy making features can unleash a diversity advantage

International Journal of Human Resource Management

Volumn 24, Issue 13, 2013, Pages 2571-2582

  Richard, Orlando C ^a   Kirby, Susan L ^b   Chadwick, Ken ^c  

^a UNIVERSITY OF TEXAS AT DALLAS   (United States)

^b TEXAS STATE UNIVERSITY   (United States)

^c Nichols State University   (United States)

Author keywords

gender diversity in management; inclusiveness; knowledge based view; participative management; racial diversity; racial diversity in management

Indexed keywords

EID: 84878635596     PISSN: 09585192     EISSN: 14664399     Source Type: Journal    
DOI: 10.1080/09585192.2012.744335     Document Type: Article

References (56)

1. Ashby, W.R. (1956), An Introduction to Cybernetics, London: Chapman & Hall.
2. Bantel, K.A., and Jackson, S.E. (1989), 'Top Management and Annovation in Banking: Does the Composition of the Top Team Make a Difference?' Strategic Management Journal, 10, 107-124.
3. Barney, J.B. (1991), 'Firm Resources and Sustained Competitive Advantage,' Journal of Management, 17, 99-120.
4. Birkinshaw, J. (1997), 'Entrepreneurship in Multinational Corporations: The Characteristics of Subsidiary Initiatives,' Strategic Management Journal, 18, 207-229.
5. Blau, P.M. (1977), Heterogeneity and Inequality: A Primitive Theory of Social Structure, New York: Free Press.
6. Carmelli, A., Sheaffer, Z., and Halevi, M.Y. (2009), 'Does Participatory Decision-Making in Top Management Teams Enhance Decision Effectiveness and Firm Performance,' Personnel Review, 38, 696-714.
7. Carson, C.M., Mosley, D.C., and Boyar, S.L. (2004), 'Performance Gains Through Diverse Top Management Teams,' Team Performance Management, 10, 121-126.
8. Cohen, G.L., and Garcia, J. (2008), 'Identity, Belonging, and Achievement: A Model, Interventions, Implications,' Current Directions in Psychological Science, 17, 365-369.
9. Cox, T.H., Lobel, S.A., and McLeod, P. (1991), 'Effects of Ethnic Group Cultural Differences on Cooperative and Competitive Behavior on a Group Task,' Academy of Management Journal, 34, 827-847.
10. De Carolis, D.M. (2003), 'Competencies and Imitability in the Pharmaceutical Industry: An Analysis of Their Relationship With Firm Performance,' Journal of Management, 29, 27-50.
11. Delery, J.E., and Doty, D.H. (1996), 'Modes of Theorizing in Strategic Human Resource Management: Tests of Universalistic, Contingency, and Configurational Performance Predictions,' Academy of Management Journal, 39, 802-835.
12. Dess, G.G., Lumpkin, G.T., and Covin, J.G. (1997), 'Entrepreneurial Strategy Making and Firm Performance: Tests of Contingency and Configurational Models,' Strategic Management Journal, 18, 677-695.
13. Doty, D.H., Glick, W.H., and Huber, G.F. (1993), 'Fit, Equifinality, and Organizational Effectiveness: A Test of Two Configurational Theories,' Academy of Management Journal, 36, 1196-1250.
14. Dwyer, S., Richard, O.C., and Chadwick, K. (2003), 'Gender Diversity in Management and Firm Performance: The Influence of Growth Orientation and Organizational Culture,' Journal of Business Research, 56, 1009-1019.
15. Earley, P.C. (1989), 'Social Loafing and Collectivism,' Administrative Science Quarterly, 34, 565-581.
16. Finkelstein, S., and Hambrick, D.C. (1990), 'Top-Management-Team Tenure and Organizational Outcomes: The Moderating Role of Managerial Discretion,' Administrative Science Quarterly, 35, 484-503.
17. Hambrick, D.C. (2007), 'The Field of Management's Devotion to Theory: Too Much of a Good Thing?' Academy of Management Journal, 50, 1346-1352.
18. Hambrick, D.C., Finkelstein, S., and Mooney, A.C. (2005), 'Executive Job Demands: New Insights for Explaining Strategic Decisions and Leader Behaviors,' Academy of Management Review, 30, 472-491.
19. Hambrick, D.C., and Mason, P. (1984), 'Upper Echelons: The Organization as a Reflection of its Top Managers,' Academy of Management Journal, 9, 193-206.
20. Harrison, D.A., and Klein, K.J. (2007), 'What's the Difference? Diversity Constructs as Separation, Variety, or Disparity in Organizations,' Academy of Management Review, 32, 1199-1228.
21. Hart, S., and Banbury, C. (1994), 'How Strategy-Making Processes Can Make a Difference,' Strategic Management Journal, 15, 251-269.
22. Jackson, S.E., Joshi, A., and Erhardt, N.L. (2003), 'Recent Research on Team and Organizational Diversity: SWOT Analysis and Implications,' Journal of Management, 29, 801-830.
23. Jehn, K.A. (1995), 'A Multimethod Examination of the Benefits and Detriments of Intragroup Conflict,' Administrative Science Quarterly, 40, 256-282.
24. Jehn, K.A., Northcraft, G.B., and Neale, M.A. (1999), 'Why Differences Make a Difference: A Field Study of Diversity, Conflict, and Performance in Workgroups,' Administrative Science Quarterly, 44, 741-763.
25. Joshi, A., and Roh, H. (2009), 'The Role of Context in Work Team Diversity Research: A Meta-Analytic Review,' The Academy of Management Journal, 52, 599-627.
26. Kirchmeyer, C., and McLellan, J. (1991), 'Capitalizing on Ethnic Diversity: An Approach to Managing the Diverse Workgroups of the 1990s,' Canadian Journal of Administrative Science, 8, 72-79.
27. Knight, D., Pearce, C.L., Smith, K.G., Olian, J.D., Sims, H.P., Smith, K.A., and Flood, P. (1999), 'Top Management Team Diversity, Group Process, and Strategic Consensus,' Strategic Management Journal, 20, 335-465.
28. Kreiser, P.M., and Davis, J. (2010), 'Entrepreneurial Orientation and Firm Performance: The Unique Impact of Innovativeness, Proactiveness, and Risk-Taking,' Journal of Small Business and Entrepreneurship, 23, 39-51.
29. Lau, D.C., and Murnighan, J.K. (1998), 'Demographic Diversity and Faultlines: The Compositional Dynamics of Organizational Groups,' Academy of Management Review, 23, 325-340.
30. McLeod, P.L., and Lobel, S.A. (1992), 'The Effects of Ethnic Diversity on Idea Generation in Small Groups,' in Best Paper Proceedings of Academy of Management Annual Meeting, Las Vegas, NV, pp. 227-231.
31. Miller, D., and Shamsie, J. (1996), 'The Resource-Based View of the Firm in Two Environments: The Hollywood Film Studios From 1936 to 1965,' The Academy of Management Journal, 39, 519-543.
32. Milliken, F., and Martins, L. (1996), 'Searching for Common Threads: Understanding the Multiple Effects of Diversity in Organizational Groups,' Academy of Management Review, 21, 402-433.
33. Nkomo, S.M. (1992), 'The Emperor has no Clothes: Rewriting "Race" in Organizations,' Academy of Management Review, 17, 487-513.
34. Pelled, L., Eisenhardt, K., and Xin, K. (1999), 'Exploring the Black Box: An Analysis of Group Work Diversity, Conflict, and Performance,' Administrative Science Quarterly, 44, 1-28.
35. Pless, N., and Maak, T. (2004), 'Building an Inclusive Diversity Culture: Principles, Processes and Practice,' Journal of Business Ethics, 54, 129-147.
36. Richard, O.C. (2000), 'Racial Diversity, Business Strategy, and Firm Performance: A Resource-Based View,' The Academy of Management Journal, 43, 164-177.
37. Richard, O.C., Barnett, T., Dwyer, S., and Chadwick, K. (2004), 'Cultural Diversity in Management, Firm Performance, and the Moderating Role of Entrepreneurial Orientation Dimensions,' Academy of Management Journal, 47, 255-266.
38. Richard, O.C., Kochan, T.A., and Mcmillan-Capehart, A. (2002), 'The Impact of Visible Diversity on Organizational Effectiveness: Disclosing the Contents in Pandora's Black Box,' Journal of Business and Management, 8, 1-26.
39. Richard, O.C., McMillan, A., Chadwick, K., and Dwyer, S. (2003), 'Employing an Innovation Strategy in Racial Diverse Workforces: Effects on Firm Performance,' Group and Organization Management, 28, 107-126.
40. Richard, O.C., Murthi, B.P.S., and Ismail, K. (2007), 'The Impact of Racial Diversity on Intermediate and Long-Term Performance: The Moderating Role of Environmental Context,' Strategic Management Journal, 28, 1213-1233.
41. Richard, O.C., and Shelor, R. (2002), 'Linking Top Management Team Age Heterogeneity to Firm Performance: Integrating Two Mid-Range Theories,' International Journal of Human Resource Management, 13, 958-974.
42. Roberson, L., and Kulik, C.T. (2007), 'Stereotype Threat at Work,' Academy of Management Perspectives, 21, 24-40.
43. Shore, L.M., Randel, A.E., Chung, B.G., Dean, M.A., Ehrhart, K.H., and Singh, G. (2011), 'Inclusion and Diversity in Work Groups: A Review and Model for Future Research,' Journal of Management, 37, 1262-1289.
44. Short, J., Broberg, J.C., Cogliser, C.C., and Brigham, K.H. (2010), 'Construct Validation Using Computer-Aided Text Analysis (CATA): An Illustration Using Entrepreneurial Orientation,' Organization Research Methods, 13, 320-347.
45. Shrader, C.B., Blackburn, V.B., and Iles, P. (1997), 'Women in Management and Firm Financial Performance: An Exploratory Study,' Journal of Managerial Issues, 9, 355-372.
46. Swann, W.B.Jr, Polzer, J.T., Seyle, D.C., and Ko, S.J. (2004), 'Finding Value in Diversity: Verification of Personal and Social Self-Views in Diverse Groups,' Academy of Management Review, 29, 9-27.
47. U.S. Department of Labor, Bureau of Labor Statistics (2009), www.bls.gov/data.
48. U.S. EEOC (2010), www.eeoc.gov.
49. van Knippenberg, D., De Dreu, C.K.W., and Homan, A.C. (2004), 'Work Group Diversity and Group Performance: An Integrative Model and Research Agenda,' Journal of Applied Psychology, 89, 1008-1022.
50. van Knippenberg, D., and Schippers, M.C. (2007), 'Work Group Diversity,' Annual Review of Psychology, 58, 515-541.
51. Watson, W.E., Kumar, K., and Michaelsen, L.K. (1993), 'Cultural Diversity's Impact on Interaction Process and Performance: Comparing Homogeneous and Diverse Task Groups,' Academy of Management Journal, 36, 590-602.
52. Wegge, J., Roth, C., Kanfer, R., Neubach, B., and Schmidt, K. (2008), 'Age and Gender Diversity as Determinants of Performance and Health in a Public Organization: The Role of Task Complexity and Group Size,' Journal of Applied Psychology, 93, 1301-1313.
53. Wheelock, D.C. (2010), 'Lessons Learned? Comparing the Federal Reserve's Responses to the Crises of 1929-1933 and 2007-2009,' Federal Reserve Bank of St. Louis Review, 92, 89-107.
54. Wiersema, M.F., and Bantel, K.A. (1993), 'Top Management Team Turnover as an Adaptation Mechanism: The Role of the Environment,' Strategic Management Journal, 14, 485-504.
55. Williams, K., and O'Reilly, C. (1998), 'Forty Years of Diversity Research: A Review,' in Research in Organizational Behavior (Vol. 20), eds. B.M.Staw and L.L.Cummings, Greenwich, CT: JAI Press, pp. 77-140.
56. Zenger, T., and Lawrence, B. (1989), 'Organizational Demography: The Differential Effects of Age and Tenure Distributions on Technical Communications,' Academy of Management Journal, 32, 353-376.