Top management team’s cultural diversity and firm performance: the mediating role of ambidextrous orientation

This  paper examines the  influences of  cultural diversity in  the top management team (TMT) on organizational performance. The link between the two is investigated through the path dependency model, where firm ambidextrous orientation serves  an intervening role. The  results of  the  study suggest that TMT cultural diversity will have a negative influence on firm performance due to the decreasing degree of ambidextrous orientation being a result of TMT diversity. The study is based on the  survey  filled  out  by  82  CEO  of  Danish  and  Swedish  listed  corporations. Studies  theoretical contribution is expressed in uncovering the mediating role of firm’s ambidextrous orientation on the TMT diversity – performance relationship.