Knowledge Transformation: A Case For Workforce Diversity

Abstract

This paper provides a theoretical framework for studying the role of knowledge transformation processes in leveraging the diversity of top management teams to improve firm performance.  Previous research on the effect of workforce diversity on firm performance recognizes the importance of relevant contextual factors, yet few studies examine the value of processes that enable a management team diverse in personal attributes to transform their knowledge into strategic decisions. Drawing on the resource-based view, the knowledge transformation process is argued to be a dynamic capability that enables firms to leverage differences in opinions, perspectives, and problem-solving abilities when making strategic decisions.  This paper yields insight into both the translation process and its relationship to strategic performance.