Organizational resilience has attracted much attention with regard to a company’s survival and to achieve higher performance in today’s uncertain conditions. However, how organizational resilience is built remains unclear. This study sheds light on the function of the top management team (TMT) from upper echelons theory and argues that its deep-level diversity has a positive impact on organizational resilience. Our empirical study of the Japanese automotive industry found that tenure, international, and wise diversity have a positive impact on building organizational resilience. In contrast, educational background diversity was found to have a negative impact on building organizational resilience, contrary to our hypothesis. Our results revealed that diversity was a double-edged sword and established the need to focus on environmental and industrial contexts in linking diversity and organizational resilience. Further elucidation of the relationship between diversity and organizational resilience can be achieved by simultaneously focusing on other aspects of diversity, in concurrence with existing diversity indices for variety.
The results of prior research on the impact of top management team (TMT) diversity on corporate performance have been varied and inconsistent. In this study, the operational definitions of TMT and diversity were checked in academic papers published between 2005 and 2020 on TMT diversity. The results confirmed three patterns for the operational definition of TMT: (a) extracted by title rank, (b) selected by CEO or equivalent top manager, and (c) executives announced in the company's public information/database. As for diversity, in addition to the studies that use conventional indices that express the various attributes of executives, it was confirmed that there exist many studies that consider diversity from the aspects of separation and disparity. Such "diversity" in the operational definition is considered the cause of the lack of consistency between TMT diversity and corporate performance.
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