Our study is an attempt to gain a more comprehensive understanding of the TMT diversityand firm performance linkage by considering various contextual contingencies relevant to TMTdiversity research. Integrating contingency theory, structural inertia based perspectives, andteam diversity literature, we conducted a meta-analysis to examine the role of multilevel contextualcontingencies in TMT diversity research. Using data from 13,478 top teams across 42 studiesconducted from 1984 till 2013, we examined whether, across multiple levels, contextual factorssuch as environmental dynamism, firm characteristics such as firm size as well as team-leveltenure influenced the overall performance outcomes of TMT diversity. Our findings indicatedthat while TMT diversity matters for overall firm performance (weighted mean r = .04, p <.001), it matters more when there is an appropriate “fit” with contextual contingencies. Specifically,we found that while positive effects of diversity doubled or even tripled in highly dynamicenvironment (weighted mean r = .08, p < .001) and in small organizations (weighted mean r =.13, p <.001), these effects became non-significant under relatively stable environmentalconditions and in a large organization setting. Moreover, our findings also revealed that overallpositive effects of TMT diversity became strengthened over time (β= .44, p < .01), i.e., beingmore positive as team members have spent more time on the same team. We provided discussionof theoretical and empirical implications of the findings and also offered suggestions for futureresearch. Practical implications for organizations as well as limitations of the study were alsodiscussed.