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Purpose This study aims to evaluate the impact of gender diversity on corporate boards on firms’ financial performance in the context of the Indian information and technology (IT) sector. The Companies Act 2013 brought forth mandatory provisions for the appointment of women directors for a certain class of companies. This study explores the case of board gender diversity in the Indian IT sector’s unique setting. Design/methodology/approach The study uses a fixed effect panel data regression model to achieve its objectives. Two widely used diversity measures, Blau Index and Shannon Index, have been used to enhance the robustness of the results. Findings The results of the study indicate an insignificant relationship between gender diversity and firms’ financial performance. Even the diversity indices portray insignificant results confirming the outcomes of the study. The study indicates that IT sector firms have not been able to leverage the benefits of board gender diversity. Research limitations/implications The results of the study have important policy implications for the government, regulatory bodies and corporates. The outcomes point out that the benefits that could have accrued based on the diversity aspect could not be harnessed, as the women’s representation on corporate boards is extremely low. Policymakers and government shall focus on devising stringent laws so that better representation of women directors can be used for the interests of the firms. Originality/value The study is an attempt to fill the gap in the extant literature which has a scarce number of studies conducted in the unique setting of the IT sector (both in developed and developing economies). To the best of the authors’ knowledge, this is the first study on the influence of board gender diversity in the IT sector of a developing economy, backed by socio-cultural reasons.
Purpose This study aims to evaluate the impact of gender diversity on corporate boards on firms’ financial performance in the context of the Indian information and technology (IT) sector. The Companies Act 2013 brought forth mandatory provisions for the appointment of women directors for a certain class of companies. This study explores the case of board gender diversity in the Indian IT sector’s unique setting. Design/methodology/approach The study uses a fixed effect panel data regression model to achieve its objectives. Two widely used diversity measures, Blau Index and Shannon Index, have been used to enhance the robustness of the results. Findings The results of the study indicate an insignificant relationship between gender diversity and firms’ financial performance. Even the diversity indices portray insignificant results confirming the outcomes of the study. The study indicates that IT sector firms have not been able to leverage the benefits of board gender diversity. Research limitations/implications The results of the study have important policy implications for the government, regulatory bodies and corporates. The outcomes point out that the benefits that could have accrued based on the diversity aspect could not be harnessed, as the women’s representation on corporate boards is extremely low. Policymakers and government shall focus on devising stringent laws so that better representation of women directors can be used for the interests of the firms. Originality/value The study is an attempt to fill the gap in the extant literature which has a scarce number of studies conducted in the unique setting of the IT sector (both in developed and developing economies). To the best of the authors’ knowledge, this is the first study on the influence of board gender diversity in the IT sector of a developing economy, backed by socio-cultural reasons.
In today’s globalized scenario, where advancements in technologies have facilitated people to connect, communicate and collaborate, and where organizations are striving to create an ecosystem that develops sustainable competitive advantage, people issues become a key factor. Organizations, therefore, require an understanding of the business scenario, organizational context and employee characteristics that influence employee behaviour and their workplace relationships as well as their intentions to stay. Though all organizations expect their employees to act with a sense of trust and commitment, the business context of family- and non-family firms are unique and different. While family firms are characterized by the family’s value system and emotions in building strong employee engagement, non-family firms are transactional and driven by outcomes. The study explores differences in organizational commitment and organizational citizenship behaviour between family- and non-family firms, and it draws on the tenets from the Social Exchange theory. The data has been collected from 634 dyadic responses captured at two levels—employees’ self-reported commitment levels and their citizenship behaviour rated by their managers. Our results show that, in the Indian context, the employees of family firms demonstrate a higher affective, continuance and normative commitment as compared to those of non-family firms. However, the two groups did not differ significantly in their organization citizenship behaviour. It was also found that the relationship between organizational commitment and citizenship behaviour was stronger in employees of family firms than in employees of non-family firms.
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