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The performance impact of gender diversity in the top management team and board of directors: A multiteam systems approach

Jie Wu¹; Orlando C. Richard²; María del Carmen Triana³; Xinhe Zhang⁴

¹ University of Aberdeen Business School, King's College Aberdeen UK · ² University of Massachusetts‐Amherst, Isenberg School of Management Amherst Massachusetts USA · ³ Vanderbilt University, Owen Graduate School of Management Nashville Tennessee USA · ⁴ University of Macau Taipa Macau China

AbstractGiven the mixed evidence that having both women and men in the top management team (TMT) or in the board of directors (BOD) has a significant influence on organizational innovation, we resolve this issue by conceptualizing TMT–BOD gender diversity as part of a multiteam system, that has joint effects which impact organizational innovation. Evidence from the study of both Chinese firms and UK firms confirm our conceptualization by showing an interaction effect between TMT gender diversity and BOD gender diversity such that innovation is greatest when both are high. The positive TMT–BOD gender diversity interaction effect on innovation improves subsequent firm performance particularly in dynamic environments. The findings refine current thinking by going beyond research that tests intra‐team TMT or BOD diversity independently and instead considers inter‐team diversity across both leadership teams within the strategic leadership upper echelons. In sum, findings show that high levels of TMT and BOD gender diversity result in more organizational innovation, which ultimately improves firm performance. We offer implications for women's inclusion in leadership as well as for research on the upper echelons.

DOI

10.1002/hrm.22086

Volume

61 (2)

Pages

157-180

Language

en

Export

BibTeX

Sources

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