Abstract
We develop a moderated mediation theory of the relationship between managerial racial diversity and firm performance. Invoking the awareness-motivation-capability (AMC) perspective, we argue that managerial racial diversity relates to firm performance indirectly through its effect on competitive aggressiveness, but that external and internal contingencies moderate this indirect effect. We find that firms with racially diverse management in munificent environments are more able to develop and introduce new competitive actions and thus gain market share and profits. Contrary to our contingency predictions, diversity training was most beneficial for firms with low racial diversity rather than high racial diversity. We tested our model on a pooled time series sample consisting of 115 Fortune 1000 firms that initiated 20,618 actions over a three- year period. Implications for future research and practice are elaborated.
| Original language | English |
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| Title of host publication | Academy of Management 2010 Annual Meeting - Dare to Care: Passion and Compassion in Management Practice and Research, AOM 2010 |
| Publication status | Published - 1 Dec 2010 |
| Externally published | Yes |
| Event | 70th Annual Meeting of the Academy of Management - Dare to Care: Passion and Compassion in Management Practice and Research, AOM 2010 - Montreal, QC, Canada Duration: 6 Aug 2010 → 10 Aug 2010 |
Conference
| Conference | 70th Annual Meeting of the Academy of Management - Dare to Care: Passion and Compassion in Management Practice and Research, AOM 2010 |
|---|---|
| Country/Territory | Canada |
| City | Montreal, QC |
| Period | 6/08/10 → 10/08/10 |
Keywords
- Competitive dynamics
- Diversity management
- Organizational demography
ASJC Scopus subject areas
- Management of Technology and Innovation
- Industrial relations
