This document summarizes a study on the effects of top management team composition on company performance in Indonesian mining companies. The study analyzed 174 executives from 18 mining companies listed on the Indonesian stock exchange. It found that characteristics like age, gender, nationality, and education level of top managers had no statistically significant influence on the companies' return on assets. Limitations of the study included its small sample size, limited variables for measuring performance, and use of only one year of annual reports. In conclusion, the composition of top management teams was found not to affect company performance in the Indonesian mining sector based on this study.

1. 1st
WORKSHOP
ON
TOP
MANAGEMENT
TEAMS
&
BUSINESS
STRATEGY
RESEARCH:
RESPONSES
AND
ADAPTABILITY
IN
TURBULENT
TIMES
(Valencia,
March
22nd
and
23rd,
2010)

2. ¡ Introduction
¡ Research
Objective
¡ Literature
Review
¡ Research
Method
¡ Conceptual
Model
¡ Result
¡ Conclusion
¡ Limitations

3. ¡ Top
management
team
composition
is
a
big
issue
in
international
business
and
management
research,
¡ limited
academic
literature
investigate
about
this
is
in
Indonesia,
especially
on
mining
company.
¡ Most
studies
have
been
conduct
in
US
and
Europe.
So
the
result
for
these
studies
reflecting
diversity
and
cultural
of
the
underlying
US
and
Europe
population.

4. ¡ The
Indonesia
economy
system
is
based
on
agricultural
production
and
extraction
of
natural
resources,
especially
oil,
natural
gas,
coal,
timber,
and
fish.
¡ Indonesia
business
system
today
is
very
much
a
reflection
of
the
legacy
of
former
president
Soeharto
(1966
–
1998)

5. ¡ D o e s
t h e
c o m p o s i t i o n
o f
t h e
To p
Management
Team
affect
the
Indonesia
mining
companies
performance?

6. AGE
At
demographic
level,
the
diversity
of
the
team
refers
to
variables
such
as
age
which
are
the
dominant
measure
of
difference
in
the
team.
Pegels
and
Yang
(2000:697),
Vroom
and
Pahl,
1971)
State
that
older
managers
tend
to
avoid
risk
while
the
young
one
tend
to
pursue
more
risky
and
innovative
growth
strategies

7. Foreigner
• Lublin
(2005),
corporate
boards
of
MNCs
are
going
global,
• particularly
in
Europe
90%
contrast
in
US
only
35
%
• Veen
and
Marsman
(2008)
nationality
diversity
is
an
important
requirement
for
quality
of
strategic
decision.
More
foreigner
in
TMTs
in
companies
has
a
better
performance
than
just
a
few
foreigner

8. Gender
Glunk,
Heijltjes
and
Olie
(2001)
found
that
gender
distribution
to
be
highly
comparable
among
the
three
countries;
there
are
few
women
executives
in
the
30
companies
in
UK,
Denmark
and
The
Netherlands

9. Educational
Level
Dahlin
et
al
(2005),
education
diversity
in
Herrmann
and
Datta,
TMT
affects
the
range
2005;
Hambrick
and
and
depth
of
the
use
of
Mason,
1984,
positive
information,
subsection
should
be
a
and
may
negatively
complementary
affect
the
combination
of
information.

10. DEDUCTIVE
METHOD
18
MINING
COMPANIES
LISTED
BEI
174
EXECUTIVES

22. AGE
FOREIGNER
-­‐0.76
0.120
ROA
GENDER
EDUCATION
LEVEL
0.042
-­‐0.234

23. ¡ From
the
ANOVA
table,
the
significant
value
=
0.298>α,
it
can
be
concluded
that
the
independent
variables
simultaneously
does
not
affect
the
dependent
variables,
so
in
other
words
the
top
management
team
composition
does
not
affect
the
company
performance.

24. AGE
–
ROA
0.300>α
FOREIGNER
–
ROA
0.435>α
GENDER
–
ROA
0.728>α
EDUCATIONAL
LEVEL
–
ROA
0.077>α

25. ¡ The
conclusion
was
that
the
independent
variables
simultaneously
does
not
affect
the
dependent
variables,
so
top
management
team
composition
does
not
affect
the
company
performance.
Also
all
variables
including
age,
foreigner,
gender
and
the
level
of
education
of
the
top
management
team
have
no
influence
on
the
performance
of
Indonesia
mining
companies

26. ¡ LIMITED
SAMPLE,
18
COMPANIES
¡ LIMITED
VARIABLE
FOR
MEASURE
THE
COMPANY
PERFORMANCE
¡ ONLY
ONE
YEAR
ANNUAL
REPORT

27. THANK
YOU
FOR
YOUR
ATTENTION
Comment
and
Suggestion