In the present-day dynamic business environment, the capacity of an organization to improve its performance is becoming important for its short-term and long-term sustainability. Diversity in employees’ teams is often portrayed as a positive force leading to effective functioning of an organization. The aim of the study was to determine the influence of top management diversity and organizational culture on the performance of state departments, in Kenya. The study was informed by the existing gap whereby the existing research work that has been undertaken with respect to top management diversity and organization performance has been carried out in profit-oriented entities and not public entities. In addition, the studies have not incorporated the mediating influence of organizational culture. Descriptive research design was adopted, with the target population being 10,033 top managers working in the 52 Kenyan state departments. The study was a census since all 52 state departments participated in the study. Stratified sampling technique was used to select a sample of 136 respondents. Primary data was collected using a questionnaire and analysed using descriptive measures and inferential statistics. The results revealed existence of a strong positive correlation between education and tenure diversity of the top management on performance of the state departments, while functional and social diversity had a moderate correlation with performance. The mediating role of organizational culture shows that a culture that is characterized by shared values, inclusivity, and effective communication—enhances the positive impact of diversity by fostering cohesion and mutual respect among leaders. The study concludes that an organization leadership with academic, functional, social and tenure diversities brings unique perspectives, specialized knowledge, and innovative problem-solving skills that enhance decision-making and strategic planning. The study recommends that state departments actively promote top management diversity to enhance organizational performance. This can be achieved through implementing affirmative action, rotational leadership programs and recruitment strategies that emphasize interdisciplinary knowledge and fostering leadership development programs that expose managers to different fields of study.
References
[1]
Abosede, A. J., Obasan, K. A., & Alese, O. J. (2020). Strategic Management and Small and Medium Enterprises (SMEs) Development: A Review of Literature. International Review of Management and Business Research,5, Article 315.
[2]
Adams, J., Khan, H. T. A., & Raeside, R. (2022) Research Methods for Business and Social Science Students (2nd ed.). Sage Publications.
[3]
Baron, R. M., & Kenny, D. A. (1986). The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology, 51, 1173-1182. https://doi.org/10.1037/0022-3514.51.6.1173
[4]
Boone, C., Lokshin, B., Guenter, H., & Belderbos, R. (2019). Top Management Team Nationality Diversity, Corporate Entrepreneurship, and Innovation in Multinational Firms. Strategic Management Journal, 40, 277-302. https://doi.org/10.1002/smj.2976
[5]
Chen, G., Tjosvold, D., & Liu, C. (2016). Cooperative Goals, Leader People and Productivity Values: Their Contribution to Top Management Teams in China. Journal of Management Studies, 43, 1177-1200. https://doi.org/10.1111/j.1467-6486.2006.00633.x
[6]
Cyert, G. H., & March, B. K. (2010). Linking Top Management Team Age Heterogeneity to Firm Performance: Juxtaposing Two Mid-Range Theories. International Journal of Human Resource Management, 13, 958-974.
[7]
Githuru, F. (2015). Transformative Constitutionalism, Legal Culture and the Judiciary under the 2010 Constitution of Kenya. Doctoral Dissertation, University of Pretoria.
[8]
Gomez, L. E., & Bernet, P. (2019). Diversity Improves Performance and Outcomes. Journal of the National Medical Association, 111, 383-392. https://doi.org/10.1016/j.jnma.2019.01.006
[9]
Hambrick, D. C., & Mason, P. A. (1984). Upper Echelons: The Organization as a Reflection of Its Top Managers. The Academy of Management Review, 9, 193-206. https://doi.org/10.2307/258434
[10]
Inkinen, H. (2017). Review of Empirical Research on Knowledge Management Practices and Firm Performance. Journal of Knowledge Management, 20, 230-257. https://doi.org/10.1108/jkm-09-2015-0336
[11]
Ishak, R., Ku Ismail, K. N. I., & Abdullah, S. N. (2013). CEO Succession and Firm Performance: Evidence from Publicly Listed Malaysian Firms. Asian Academy of Management Journal of Accounting and Finance, 9, 29-48.
[12]
Khanzode, V. (1995). Research Methodology: Technique & Trends. APH Publishing Corporation.
[13]
Klenke, K. (2013). Gender Influences in Decision-Making Processes in Top Management Teams. Management Decision, 41, 1024-1034. https://doi.org/10.1108/00251740310509553
[14]
Kothari, C. R. (2015). Quantitative Techniques (2nd ed.). Vikas Publishing House.
[15]
Li, C. (2013). How Top Management Team Diversity Fosters Organizational Ambidexterity. Journal of Organizational Change Management, 26, 874-896. https://doi.org/10.1108/jocm-06-2012-0075
[16]
Luciano, M. M., Nahrgang, J. D., & Shropshire, C. (2020). Strategic Leadership Systems: Viewing Top Management Teams and Boards of Directors from a Multiteam Systems Perspective. Academy of Management Review, 45, 675-701. https://doi.org/10.5465/amr.2017.0485
[17]
Mutinda, A. M., Otinga, H., & Kitonga, D. (2024). Influence of Vertical Diversification on Sustainable Organizational Performance of Chartered Private Universities in Kenya. International Journal of Scientific Research and Management, 12, 6552-6564. https://doi.org/10.18535/ijsrm/v12i05.em22
[18]
Omolo, G. (2020). Strategic Leadership and Organizational Performance. University of Nairobi.
[19]
Rao, K., & Tilt, C. (2016). Board Composition and Corporate Social Responsibility: The Role of Diversity, Gender, Strategy and Decision Making. Journal of Business Ethics, 138, 327-347. https://doi.org/10.1007/s10551-015-2613-5
[20]
Ruiz-Jiménez, J. M., & del Mar Fuentes-Fuentes, M. (2018). Management Capabilities, Innovation, and Gender Diversity in the Top Management Team: An Empirical Analysis in Technology-Based SMEs. BRQ Business Research Quarterly, 19, 107-121. https://doi.org/10.1016/j.brq.2015.08.003
[21]
Tanikawa, T., & Jung, Y. (2016). Top Management Team (TMT) Tenure Diversity and Firm Performance. International Journal of Organizational Analysis, 24, 454-470. https://doi.org/10.1108/ijoa-02-2014-0739
[22]
van Knippenberg, D., & Schippers, M. C. (2007). Work Group Diversity. Annual Review of Psychology, 58, 515-541. https://doi.org/10.1146/annurev.psych.58.110405.085546
[23]
Wu, J., Richard, O. C., Zhang, X., & Macaulay, C. (2019). Top Management Team Surface-Level Diversity, Strategic Change, and Long-Term Firm Performance: A Mediated Model Investigation. Journal of Leadership & Organizational Studies, 26, 304-318. https://doi.org/10.1177/1548051819848997
[24]
Yadav, S., & Lenka, U. (2020). Diversity Management: A Systematic Review. Equality, Diversity and Inclusion: An International Journal, 39, 901-929.
[25]
Zhou, L., Huang, H., Chen, X., & Tian, F. (2023). Functional Diversity of Top Management Teams and Firm Performance in SMEs: A Social Network Perspective. Review of Managerial Science, 17, 259-286.
