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The knowledge‐based theory argues that the strategy of internal diversification reflects a process of branching‐out, combination and transformation of the organization’s traditional knowledge bases. From this theory, this paper has the purpose to describe the cycles and phases in the process of knowledge creation that lead to the creation of new knowledge and consequently new product and business in a diversified Spanish firm. From the case study findings a theoretical proposition is derived in order to support the theoretical argument of the theory of knowledge creation.

The aim of this research is two‐fold: to examine the effects of certain characteristics of top management teams (TMTs) on innovative performance in their companies; and to determine if this influence is direct or if it is influenced by other factors, such as the existence of strategic consensus in the team.

The research is developed using Upper Echelon Theory. This study was conducted with a sample of 100 companies from innovative sectors. Different regression analysis were undertaken in order to test the established hypotheses.

Three main conclusions can be drawn from this research. First, it cannot be stated that all types of diversity related to TMT activity or work have a positive effect on innovation in companies. In this way, diversity in TMT tenure appears to have a negative influence. Second, the incidence of diversity on innovation cannot be direct in all cases. Therefore, functional diversity has a positive effect on innovation, but always when there is a context of strategic consensus in the management team. Finally, TMT educational level exerts a positive effect on organizational innovation degree, independently on processes, which may occur within the team.

The paper has tried to improve and clarify the contributions about the direct relationship model proposed by Upper Echelon Theory between TMT demographic characteristics and innovation. The results have confirmed, in support of the critics of the theory that it is necessary to introduce and analyze, along with demographic variables, other factors and processes which affect TMT decision making.

The aim of this paper is to analyze the influence of two categories of conflict antecedents – input and behavior antecedents – on the level of relationship conflict (RC) in top management teams (TMTs). The authors apply a process view to conflict, and consider that the effect of the input antecedents on RC may be mediated by a behavioral antecedent: behavioral integration.

Using a survey instrument, multi-informant data were collected from 64 TMTs. An aggregation and measurement analysis was performed. To test the hypotheses of mediation, bootstrapping procedures were used.

The results show that the effects of team tenure, intragroup trust and value consensus on relationship conflict are mediated by behavioral integration. However, TMT size does not affect relationship conflict – either directly or indirectly – through behavioral integration.

It is concluded that encouraging intragroup trust and value consensus among TMT members facilitates the integrated behavior of the team. This behavioral integration may allow conflict to be constructive. Therefore, firms should make an effort to encourage this psychological context.

Previous research about the antecedents of RC in the field of TMTs is inconclusive. Additionally, a new approach to conflict antecedents is considered, to establish a direct and independent relationship between different categories of antecedents and TMT conflict. A relationship of interdependence is considered between different types of antecedents and their effects on RC.

This work has three main objectives – to analyse whether the strategic vision of the top management team (TMT) directly affects firms' innovation performance; to shed some light on which of the intrinsic characteristics of work teams proposed in the literature influence innovation; and to analyse the joint effect that the TMT's vision and the work team's characteristics may exert on innovation performance.

The sample for this study was chosen from the Dun & Bradstreet database. The population consists of firms with more than 50 employees belonging to the three sectors of the Spanish economy with the largest number of registered patents according to statistics from the Spanish Office of Patents and Brands (960 firms).

The results indicate that the TMT's strategic vision alone does not explain companies' innovation performance. Innovation also requires the existence of diverse, cohesive, and autonomous work teams whose members engage in fluent informal communication.

The empirical evidence demonstrates the complexity of the innovation performance that has to be encouraged by the TMT, but also supported by the existence of teams with specific characteristics.

These results offer relevant implications for R&D managers about the way teams should be formed to increase innovation. The paper derives some conclusions about the key characteristics of work teams that, in combination with the view of the TMT, can affect innovation in firms.

The majority of earlier studies have analysed theoretically the effect of both variables – the strategic vision of the TMT and the intrinsic characteristics of teams – on innovation, but separately. This paper analyses the joint effects that the intrinsic characteristics of work teams have on innovation, which resolve some contradictions regarding the way some variables affect innovation of the firm. Finally the results offer empirical evidence on how Spanish firms obtain innovation performances.