| The top managers of the firm decide firm strategy and implementation. Success and failure are largely controlled by a few key players at the top of the corporate structure. Current United States corporate scandals of Top Management Team's unethical behavior push the question: who is making the decisions and are the appropriate decisions being made?; The purpose of this study is to further investigate the moderator of managerial complexity through the dimension of international diversity as defined by Carpenter (2002). Based on further research suggestions (Carpenter, 2002; Haleblian & Finkelstein, 1993; Knight et al., 1999; Priem et al., 1999) and the upper echelons foundation of TMT demographic studies, the relationship between TMT group heterogeneity, international diversification, and formal education level against firm financial performance is explored.; The focus of this study is the service sector industries. Data from 1995 through 2002 on Business Services, Amusement and Recreation Services, and Health Services Industries, are evaluated. From this population financial data was collected from 207 firms. Of the 207 firms, 179 of them included top management team data, and 107 of the firms have operations in more than one country.; Multiple linear regressions are performed on the data. Mediator effects of the independent variables on the dependent variable of firm performance are tested using the method outlined by Jaccard, Turrisi, and Wan (1990). Final analysis of the relationships are tested using split sampling on environmental turbulence.; The study does not find support for moderating effects of managerial complexity on firm performance. Rather, support is found for the independent predictor of managerial complexity and sociocultural context on firm performance. |
