Matching middle and top managers: Do gender and tenure similarities between middle and top managers affect organizational performance?

Abstract

This paper studies whether demographic similarities between middle and top managers with different tasks (strategy formation and strategy implementation) impacts organizational performance. By drawing on relational demography theory, we investigate the effect of similarity in gender, organizational tenure, and in both these demographics on the overall costs of Dutch municipalities. The main findings of this paper show that the similarity effects are interrelated: when middle and top managers diverge on only one demographic, performance is increased. Also, when leaders are similar on both demographics, performance is impaired. We conclude by discussing the implications for the literature on middle management, relational demography, and strategy formation and implementation.