Top Team Cultural Diversity and Innovation: Sequential Mediation via Absorptive Capacity—Evidence from Colombian Firms

Based on a sample of 155 medium and large firms located in Colombia’s Caribbean region, the research employs a split-respondent design—collecting predictor and outcome variables from different executives within each firm—to mitigate common method bias.

Using covariance-based structural equation modeling (CB-SEM), the results show that TMT cultural diversity has a positive direct effect on innovation (β = 0.243; p < 0.05) and an indirect effect through the sequential mediation of PACAP and RACAP (β = 0.016; p < 0.10). The originality of the study lies in integrating the TMT diversity and absorptive capacity literatures, providing empirical evidence on the microfoundations that link cultural attributes of top teams to strategic innovation outcomes.