Top management team diversity, group process, and strategic consensus

This study integrated concepts from upper echelons, group process and socia l cognition theories to investigate holy demographic diversity and group pr ocesses influence strategic consensus within the top management team (TMT), where strategic consensus is defined as the degree to which individual men tal models of strategy overlap. Data from 76 high-technology firms in the U nited Stares and Ireland were used to examine three alternative models. The results showed that while demographic diversity alone did have effects on strategic consensus the overall fit of the model was not strong. Adding two intervening group process variables, interpersonal conflict and agreement- seeking, to the model greatly improved the overall relationship with strate gic consensus. For the most part, TMT diversity had negative effects on str ategic consensus. The model with superior fit showed both direct and indire ct effects of diversity on strategic consensus. Copyright (C) 1999 John Wil ey & Sons, Ltd.