Does Diversity in Top Management Teams Contribute to Organizational Performance? The Response of the IBEX 35 Companies

Mercedes Rodríguez-Fernández, Ana I. Gaspar-González and Eva M. Sánchez-Teba
Additional contact information
Mercedes Rodríguez-Fernández: Department of Economics and Business Administration, Campus El Ejido s/n 29071, University of Málaga, 29016 Málaga, Spain
Ana I. Gaspar-González: Department of Economics and Business Administration, Campus El Ejido s/n 29071, University of Málaga, 29016 Málaga, Spain
Eva M. Sánchez-Teba: Department of Economics and Business Administration, Campus El Ejido s/n 29071, University of Málaga, 29016 Málaga, Spain

Social Sciences, 2020, vol. 9, issue 4, 1-16

Abstract: This study contributes to the dissemination of the theoretical and empirical knowledge on the Upper Echelons Theory, considering training and demographic diversity in Top Management Teams (TMTs) as a unique feature of companies, in our case, the IBEX 35 companies. Based on the results, we can confirm that the inclusion of women in management teams positively influences the sales of a company and contributes to increasing financial results. Age and knowledge of two or more languages are important factors in achieving an increase in financial performance. From the point of view of business practice, the results obtained are useful for increasing knowledge of which TMT characteristics are valid, which allows for better results and the establishment of responsible organizational policies that promote the inclusion of gender diversity in TMTs. In addition, the results of this study indicate that the incorporation of members of other non-Spanish nationalities would constitute a distinctive feature of a company and would enrich it not only financially, but also culturally.

Keywords: diversity; top management team; upper echelons theory; organizational performance; IBEX 35 companies; net sales; EBITDA (search for similar items in EconPapers)
JEL-codes: A B N P Y80 Z00 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2076-0760/9/4/36/pdf (application/pdf)
https://www.mdpi.com/2076-0760/9/4/36/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jscscx:v:9:y:2020:i:4:p:36-:d:338794

Access Statistics for this article

Social Sciences is currently edited by Ms. Yvonne Chu

More articles in Social Sciences from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().