An Empirical Research On The Influence Of Top Management Team Heterogeneity To The Relationship Of Company Diversification Strategy And Performance

Diversification strategy is a significant and controversial operation strategy in enterprises. Due to the different research angles, environments and conditions; the studies on the relationship between enterprise diversification strategy and performance get the different conclusions. In this paper we study from the relationship between enterprise diversification strategy and performance from the angle of top management team's heterogeneity. We use the TMT heterogeneity as adjusting variable to discuss the relationship between enterprise diversification strategy and performance relationship. We using the panel data of 300 index companies and least square method, have an empirical research on the impact of the top management team heterogeneity to the relationship between enterprise diversification strategy and performance.Through the empirical study, we found that the related diversification and performance have a significant positive correlation, but the unrelated diversification and performance of the company have no significant correlation. The age heterogeneity of the top management team has no significant influence to the relationship between related or unrelated diversification strategy and performance of the company. The TMT tenure heterogeneity has no significant influence to the relationship between related diversification strategy and performance of the company, but has significantly positive impact to the relation between unrelated diversification strategy and performance of the company. TMT's education background heterogeneity has significantly positive effects to the relationship between the related /unrelated diversification strategy and performance of the company. TMT's professional experience heterogeneity also has significantly positive effects to the relationship between the related/unrelated diversification strategy and performance of the company.