Demographic Diversity in the Boardroom
ARTICLE REVIEW
Demographic diversity in the boardroom: mediators of the board diversity–firm performance relationship
Miller, Toyah and del Carmen Triana, Maria
2009 Journal of Management Studies 46: 755-786
INTRODUCTION
This writing attempts to review the article in the title by analysing the research questions and its answers, the theoretical framework and the research methods employed. To conclude, a critical review of this research and some suggestions for further development are indicated.
RESEARCH QUESTION AND BACKGROUND
Previous researches have studied the relationship between board diversity and firm performance and suggested further investigation should find new variables to explain it. This work investigates firm reputation and innovation as mediators that can explain the influence of board racial and gender diversity to firm performance.
This work is based on the signalling theory that outlines the significance of organisations credibly conveying some relevant information about themselves to other parties – this is the signal (Spence 2001). Certo developed further the signalling theory to explain how information disseminated about the structure of the board of a firm “represents important nonfinancial information … when making investment decisions” (Certo 2003:432). Miller and del Carmen explore the signalling existing literature and they suggest that there is a link between board diversity and reputation.
This work is also based on the behavioural theory where decision making in organisations is the weighted output from conflicting interests and multiple inputs (Cyert and March cited in Linstead et al. 2004: 476). Group decisions are more innovative as a consequence of abundant and varied information resulting from cognitive conflicts. Miller and del Carmen explore the behavioural theory and they point that there is a link between board diversity and innovation.
RESEARCH PROTOCOL
Based on the above mentioned theories a set of
Demographic diversity in the boardroom: mediators of the board diversity–firm performance relationship
Miller, Toyah and del Carmen Triana, Maria
2009 Journal of Management Studies 46: 755-786
INTRODUCTION
This writing attempts to review the article in the title by analysing the research questions and its answers, the theoretical framework and the research methods employed. To conclude, a critical review of this research and some suggestions for further development are indicated.
RESEARCH QUESTION AND BACKGROUND
Previous researches have studied the relationship between board diversity and firm performance and suggested further investigation should find new variables to explain it. This work investigates firm reputation and innovation as mediators that can explain the influence of board racial and gender diversity to firm performance.
This work is based on the signalling theory that outlines the significance of organisations credibly conveying some relevant information about themselves to other parties – this is the signal (Spence 2001). Certo developed further the signalling theory to explain how information disseminated about the structure of the board of a firm “represents important nonfinancial information … when making investment decisions” (Certo 2003:432). Miller and del Carmen explore the signalling existing literature and they suggest that there is a link between board diversity and reputation.
This work is also based on the behavioural theory where decision making in organisations is the weighted output from conflicting interests and multiple inputs (Cyert and March cited in Linstead et al. 2004: 476). Group decisions are more innovative as a consequence of abundant and varied information resulting from cognitive conflicts. Miller and del Carmen explore the behavioural theory and they point that there is a link between board diversity and innovation.
RESEARCH PROTOCOL
Based on the above mentioned theories a set of
References: Anon. (2008) Foundation of knowledge and professional skills Cheltenham: Learning resource Bryman, Alan and Bell, Emma (2007) Business research methods Second Edition New York: Oxford University Press Certo, S. Trevis (2003) ‘Influencing initial public offering investors with prestige: signalling with board structures’ Academy of Management Review 28(3): 432-446 Kenny, David A. (1975) ‘Cross-lagged panel correlation: a test for spuriousness’ Psycological Bulletin 82(6): 887-903 Linstead Stephen, Fulop Liz, and Lilley Simon (2004) Management and Organization Basingstoke: Palgrave Macmillan Miller, Toyah and del Carmen Triana, Maria (2009) ‘Demographic diversity in the boardroom: mediators of the board diversity–firm performance relationship’ Journal of Management Studies 46: 755-786. Spence, A. Michael (2001) ‘Signaling in retrospect and the informational structure of markets’ Nobel prize lecture December 8 2001