Top Management Team Diversity, Quality Decisions and Organizational Performance in the Service Industry

Abstract

Some past studies have found that the characteristics of the Top Management Team influence the performance of organizations while others have found that they do not. This study, which is founded on the Upper Echelon Theory, investigated the relationship between TMT diversity, quality decisions and organization performance. The study sought to find out the effect of TMT diversity and quality decisions in the performance of commercial banks in Kenya. The study found that quality decisions had a significant effect on the internal business processes and learning and growth perspectives of the balanced scorecard. The study sought to find the intervening effect of the quality decisions and the moderating effect of involvement culture and diversity management strategies. The study found that the two moderating variables had a significant effect on the relationship between TMT diversity and quality decisions and TMT diversity and organization performance.