Board Gender Diversity, Nonmarket Strategy and Firm Performance: Evidence from Emerging Markets MNCs

Abubakr Saeed, Muhammad Saad Baloch, Tahiru Liedong, Tazeeb Rajwani

Research output: Contribution to journalArticlepeer-review

2 Citations (SciVal)

Abstract

Firms operating in foreign markets often engage in nonmarket activity for various benefits, such as gaining legitimacy, reducing uncertainty and enhancing performance. This is particularly true for emerging markets multinationals corporations (EMNCs) in advanced countries, as they commonly experience liabilities and challenges due to their origin. Leveraging institutional theory, we conceptualize board gender diversity as a nonmarket strategy, and investigate its impact on the performance of EMNCs. Using data from a sample of Chinese and Indian foreign subsidiaries, we find that board gender diversity improves performance. This effect is stronger for firms having public relations functions and also for firms operating in foreign countries with high institutional gender parity. These findings, besides significantly adding to the literature, have practical and managerial implications.
Original languageEnglish
Article number102462
JournalResearch in International Business and Finance
Volume71
Early online date25 Jun 2024
DOIs
Publication statusPublished - 31 Aug 2024

Data Availability Statement

Data will be made available on request.

Funding

This research received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors.

Keywords

  • Board gender diversity
  • Corporate decision making
  • Emerging market multinationals
  • Legitimacy
  • Nonmarket strategy

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Finance

Fingerprint

Dive into the research topics of 'Board Gender Diversity, Nonmarket Strategy and Firm Performance: Evidence from Emerging Markets MNCs'. Together they form a unique fingerprint.

Cite this