Influence of Gender Diversity in Boards on Family and Non-family Businesses Towards Innovation and Creativity

Abstract

This article aims to understand better the impact of the diversity of gender in boards on the innovation and creativity of companies in the context of the structure of business—family businesses and non-family businesses. Based on women’s participation in decision-making and family firm literature, we argue that women directors/executives’ impact on decision-making will rely on their relative power and credibility within the board. These dynamics are especially crucial, bringing creativity to family firm’s boardrooms as well. The results show that increases in innovation and creativity with women’s presence in family firms’ boards are due mainly to outsider non-family and insider family women directors/executives. Even after the division of women directors into independent and non-independent directors, the finding suggests that women independent directors have an impact on the company’s innovations. Conversely, women chair minimal effects on the innovation and creativity advances of the businesses. Furthermore, In the family business, the influence of women managers and women independent managers on the innovation and creativity of a company is slightly stronger.

Shaping a sustainable future: The impact of board gender diversity on clean energy use and the moderating role of environmental, social and governance controversies

“…Furthermore, numerous studies have established that the combination of male and female board directors leads to improved decision‐making and more effective problem‐solving approaches. Shukla and Teraiya (2022) argue that board gender diversity promotes creativity and problem‐solving capability in family firms due to delivering a broad range of perspectives, increasing the search for information, and improving the supply of ideas (Griffin et al, 2021; Issa & Bensalem, 2022; Torchia et al, 2015). Moreover, several scholars suggest that the presence of female members on board provides access to critical resources (e.g., business contracts, contacts, and finance) (Hillman et al, 2002).…”

Are gender‐diverse boards eco‐innovative? The mediating role of corporate social responsibility strategy

“…This argument is based on the fact that female directors bring different and unique perspectives to board table, promote more effective problem solving, and improve decision‐making process, which ultimately enhances boards' sensitivity to environmental issues (Cumming & Leung, 2021; Konadu et al, 2022; Nadeem et al, 2020). However, the findings are inconsistent for a direct relationship between gender diversity and innovation (García‐Sánchez et al, 2021; Ma et al, 2022; Moreno et al, 2018; Shukla & Teraiya, 2022; Ullah & Nasim, 2021). Inconsistent findings have led some to the assumption that having gender diversity on board may not influence directly eco‐innovation and that alternative explanations are needed (Moreno et al, 2018; Wang et al, 2022).…”

Walking on the gender tightrope: Unlocking ESG potential through CEOs' dynamic capabilities and strategic board composition

“…The research model incorporated several control variables commonly used in empirical research. At the organizational level, the following six controls were included: (1) firm age , representing the number of years since incorporation (Audia & Greve, 2006; Shukla & Teraiya, 2022); (2) firm size , calculated as the natural logarithm of the number of employees (He & Jiang, 2019); (3) firm performance , proxied by return on assets (ROA) (He & Jiang, 2019; Taglialatela et al, 2023; Velte, 2016); (4) research and development ( R&D ) intensity , determined by the R&D spending to sales ratio (Manita et al, 2018; Velte, 2017); (5) slack resources , measured by a firm's level of available slack (He & Jiang, 2019; Marlin & Geiger, 2015); and (6) leverage , indicated by the debt to assets ratio (Manita et al, 2018; Velte, 2016, 2017).…”

“…six controls were included: (1) firm age, representing the number of years since incorporation(Audia & Greve, 2006;Shukla & Teraiya, 2022); (2) firm size, calculated as the natural logarithm of the number of employees(He & Jiang, 2019); (3) firm performance, proxied by return on assets (ROA)(He & Jiang, 2019;Taglialatela et al, 2023;Velte, 2016); (4) research and development (R&D) intensity, determined by the R&D spending to sales ratio(Manita et al, 2018;Velte, 2017);…”