Research On The Impact Of Top Management Team Diversity On Enterprise Innovation Ability

Innovation is an essential factor for enterprises to obtain sustainable growth and maintain their core competitiveness.With the issuing and application of the policy of constructing Innovative country,Innovation capability has become an essential part of the supply-side reform and a new motivation of economic growth of enterprises.Second board market enterprise are mostly engaged in high-tech business.Under the new normal,second board market enterprise are facing severe market competition.Innovation ability is particularly essential for their survival and development.With the change of financial market environments,Top management teams(TMTs)have to identify and capture risks and opportunities in the financial market,develop the groups' advantages,and promote the enterprises' Innovative activities.Therefore,building a reasonable and efficient TMT is not only the need for enterprises to respond to external complex financial market environments,but also an inevitable requirement for enterprises to improve the Innovation capability.The existing research conclusions about the influence mechanism of TMT on enterprise innovation ability are not consistent,the main reason is the lack of division of the dimensions on diversified traits.Based on upper echelons theory,resource-based theory,social identity theory and principal-agent theory,the paper divided TMT background diversify into two aspects of social background diversity and function background diversity.Through the theory analysis,this paper expatiates the influence mechanism of social background diversity and function background diversity on enterprise Innovation ability,and attempts to explore the ownership concentration how to play its regulative role between TMT diversification and corporate Innovation.Using the samples of 345 listed companies on second board market from 2014 to 2018,this paper constructed four multiple regression models to tested the correlation between the social background and functional background diversity of TMT and the Innovation ability of the enterprise,as well as the regulating role of ownership concentration.The research results of this paper are as follow:(1)Significant negative correlation was observed between the social background diversity of TMT and Innovation capability of the enterprise.The social background diversity of TMT will lead to the thinking mode and cognitive conflict between the team members,which goes against the unity and efficiency of group decision-making and the efficiency of team communication and cooperation.Therefore,social background diversity of TMT has a negative impact on enterprises Innovation ability.(2)The correlative analysis showed that there was a positive correlation between the function background diversity of TMT and enterprise Innovation ability.The TMT with diversified functional backgrounds can provide more extensive and abundant information resources for the decision-making of the team,broaden team members' horizon,and improve the creativity and flexibility of the organization.Thus,functional background diversity of TMT has a positive correlation on enterprises Innovation ability.(3)Further research showed that ownership concentration plays a regulatory effect between the diversification of TMT and the Innovation ability of enterprise.The improvement of ownership concentration lower the negative impact of the social background diversity of TMT on the enterprise Innovation ability,and enhances the positive effects of the functional background diversity on the Innovation ability of the enterprise.(4)the results of property right classification regression showed that,compared with state-owned enterprises,social background diversity of TMT has a smaller negative impact on the Innovation ability of non-state-owned enterprises,while the positive effects of functional background on the Innovation ability of enterprises are not as strong as that of state-owned enterprises.Finally,the ownership concentration still plays a significant regulating role both at state-owned enterprises and non-state-owned enterprises.The Party's Nineteenth Congress report stressed that Innovation was the primary driving force behind development.Improving Innovation ability played a critical role in the improvement of market competitiveness and long-term stable growth of enterprises.This article provides ideas for explaining the inconsistency of existing research conclusions,supplements and enriches the explanatory power of existing theoretical research.The research conclusions of this article provided theoretical support for the second board market high-tech enterprises to improve their Innovation ability by optimizing the structure of TMT,and enrich the theory achievements in the field of TMT and Innovation research.Enterprises should give full play to the role of diversified functional backgrounds to promote Innovation through the reasonable allocation of TMT.Meanwhile,the negative effects of differences in social backgrounds such as age and gender should be avoided.