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


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
Early online date25 Jun 2024
Publication statusE-pub ahead of print - 25 Jun 2024

Data Availability Statement

Data will be made available on request.

Cite this