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Project Citation: 

Li, Kaili. How do demographic faultlines in top management team and board of directors affect innovation performance? The mediating role of managerial risk-taking. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2023-04-15. https://doi.org/10.3886/E189081V1

Project Description

Summary:  View help for Summary Top management team (TMT) and board of directors (board) play different roles in affecting strategic decisions and organizational outcomes, but we know little about how the interaction between TMT demographic faultlines and board demographic faultlines (TMT-board demographic faultlines) influences innovation performance. In this study, I address this gap by exploring the effect of TMT-board demographic faultlines on innovation performance. Evidence from the Chinese listed firms shows that TMT-board demographic faultlines are positively related to innovation performance and managerial risk-taking. Managerial risk-taking mediates the positive relationship between TMT-board demographic faultlines and innovation performance. The positive effects of TMT-board demographic faultlines on innovation performance and managerial risk-taking are negatively moderated by environmental dynamism. This study offers important implications for the faultlines literature, strategic leadership literature, and risk-taking literature. 



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