Manuscript Type: Conceptual (Review)

Research Question/Issue: This review examines how gender diversity on corporate boards influences corporate governance outcomes that in turn impact performance. We describe extant research on theoretical perspectives, characteristics and impact of women directors on corporate boards (WOCB) at micro, meso and macro levels: individual, board, firm and industry/environment.

Research Finding/Insights: To the best of our knowledge, this is the first comprehensive review of WOCBs, incorporating and integrating research from over 400 publications in psychology, sociology, leadership, gender, finance, management, law, corporate governance and entrepreneurship domains. In addition, we organized our findings to provide a new lens enabling the field to be readily examined by level and by theoretical perspective. The review indicates that WOCB research is about improving corporate governance through better use of the whole talent pool’s capital, as well as about building more inclusive and fairer business institutions that better reflect their present generation stakeholders.

Theoretical/Academic Implications: With only one in ten papers addressing theoretical development, the predominant perspectives are human and social capital theories and gender schema at individual level; social identity, token and social networks theories at board level; resource dependency, institution and agency theories at firm level, and institutional, critical and political theories at environmental level. We provide a short synopsis of findings at each level, and conclude with an outline of fruitful directions for future research.

Practitioner/Policy Implications: There are increasing pressures for WOCBs, from diverse stakeholders such as the European Commission, national governments, politicians, employer lobby groups, shareholders, Fortune and FTSE rankings, best places for women to work lists as well as expectations from highly qualified women who are likely to leave if they see no women board members. Rationales generally draw on the business case, however the moral justice case is also used by those who seek a fairer gender balance in all aspects of society. From our review, the ‘Impact’ section charts the effect of WOCB at all four levels of analysis.

/pdf/women-directors-on-corporate-boards-a-review-and-research-291ijfwxtw.pdf

Women Directors on Corporate Boards: A Review and Research Agenda

This study investigates the relationship between organizational commitment and employee perceptions of corporate social responsibility (CSR) within a model that draws on social identity theory. Specifically, we examine the impact of three aspects of socially responsible behaviour on organizational commitment: employee perceptions of corporate social responsibility in the community, procedural justice in the organization and the provision of employee training. The relationship between organizational commitment and each aspect of CSR is investigated within a model that distinguishes between genders and includes a set of control variables that is drawn from the commitment literature (Meyer et al., 2002). The analysis is based on a sample of 4,712 employees drawn from a financial services company. The results emphasize the importance of gender variation and suggest both that external CSR is positively related to organizational commitment and that the contribution of CSR to organizational commitment is at leas...

/pdf/the-contribution-of-corporate-social-responsibility-to-5fadvxfqo8.pdf

The contribution of corporate social responsibility to organizational commitment

While the strategy-as-practice research agenda has gained considerable momentum over the past five years, many challenges still remain in developing it into a robust field of research. In this editorial, we define the study of strategy from a practice perspective and propose five main questions that the strategy-as-practice agenda seeks to address. We argue that a coherent approach to answering these questions may be facilitated using an overarching conceptual framework of praxis, practices and practitioners. This framework is used to explain the key challenges underlying the strategy-as-practice agenda and how they may be examined empirically. In discussing these challenges, we refer to the contributions made by existing empirical research and highlight under-explored areas that will provide fruitful avenues for future research. The editorial concludes by introducing the articles in the special issue.

/pdf/strategizing-the-challenges-of-a-practice-perspective-4z7dozc745.pdf

Strategizing: The challenges of a practice perspective

Despite a large body of literature examining the relationship between women on boards and firm financial performance, the evidence is mixed. To reconcile the conflicting results, we statistically combine the results from 140 studies and examine whether these results vary by firms' legal/regulatory and socio-cultural contexts. We find that female board representation is positively related to accounting returns and that this relationship is more positive in countries with stronger shareholder protections--perhaps because shareholder protections motivate boards to use the different knowledge, experience, and values that each member brings. We also find that, although the relationship between female board representation and market performance is near zero the relationship is positive in countries with greater gender parity (and negative in countries with low gender parity)--perhaps because societal gender differences in human capital may influence investors' evaluations of the future earning potential of firms that have more female directors. Lastly, we find that female board representation is positively related to boards' two primary responsibilities: monitoring and strategy involvement. For both firm financial performance and board activities, we find mean effect sizes comparable to those found in meta-analyses of other aspects of board composition. We discuss the theoretical and practical implications of our findings

Women on Boards and Firm Financial Performance: A Meta-Analysis

Board diversity has become a major issue within corporate governance where a number of studies seek to explore the impact of diversity on firm performance. The debate focuses on questions such as whether a corporation’s board should reflect the firm’s stakeholders or be more in line with society in general. This article uses a sample of listed Danish firms during the period of 1998–2001 in a cross sectional analysis. Despite that fact that Denmark has gone very far in the liberalisation of women, Danish board rooms are still to a large extent dominated by men. Contrary to a number of other studies, this article does not find any significant link between firm performance as measured by Tobin’s Q and female board representation. This is also the case for board members’ educational background as well as the proportion of foreigners. It is argued that board members with an unconventional background are socialised unconsciously adopting the ideas of the majority of conventional board members, which entails that a potential performance effect does not materialise.

Does female board representation influence firm performance? The Danish evidence

Empirical studies of strategizing face contradictory pressures. Ethnographic approaches are attractive, and typically expected since we need to collect data on strategists and their practices within context. We argue, however, that today's large, multinational, and highly diversified organizational settings require complimentary methods providing more breadth and flexibility. This paper discusses three particularly promising approaches (interactive discussion groups, self-reports, and practitioner-led research) that fit the increasingly disparate research paradigms now being used to understand strategizing and other management issues. Each of these approaches is based on the idea that strategizing research cannot advance significantly without reconceptualizing frequently taken-for-granted assumptions about the way to do research and the way we engage with organizational participants. The paper focuses in particular on the importance of working with organizational members as research partners rather than passive informants.

Three Responses to the Methodological Challenges of Studying Strategizing

/pdf/three-responses-to-the-methodological-challenges-of-studying-194h7rmyvs.pdf

Research suggests that more diversity in board membership could improve overall performance. This paper considers the business case for increased numbers of female directors, and the lack of female representation on UK FTSE 100 company boards in 1999 and 2000. It also offers a comparison to US data. In 1999, almost two-thirds of FTSE 100 companies had at least one female director, but numbers had dropped by July 2000 from 64 per cent to 58 per cent, paralleling the levelling-off at top level reported in North America. More firms having female directors are to be found amongst those with the highest turnover, profit and number of employees in the FTSE 100, again paralleling the findings from the US.

/pdf/women-directors-on-top-uk-boards-4ghf53zl8w.pdf

Women Directors on Top UK Boards

Researching strategists and their identity in practice: building ‘close-with’ relationships

This paper reports the findings of in‐depth case study research carried out with the board of a UK family business. The research was designed to explore interaction amongst directors seeking to achieve agreement on a key strategic issue in one of their quarterly board meetings. In particular there is a focus on the extent to which there is parity between individual directors’ own opinions and views about this strategic issue, contributions they made in the boardroom and the collective agreement reached.

Phyl Johnson

Papers

Three Responses to the Methodological Challenges of Studying Strategizing

Three Responses to the Methodological Challenges of Studying Strategizing

Women Directors on Top UK Boards

Researching strategists and their identity in practice: building ‘close-with’ relationships

Shared thinking and interaction in the family boardroom