Literature Review Women on boards and in TMTS and firm performance54 and convincing A business may benefit from the various perspectives beliefs and capabilities of a gender diverse workforce as they potentially en hance market knowledge and creativity and avoid group think Different business practices risk pre ferences or problem solving approaches are suita ble to improve management activity and strategic thinking On the other hand homogeneous ma nagement may perform better than diverse teams as communication processes and decision making processes are more efficient and its members are more open to the exchange of ideas Cooperation is better in homogeneous teams cohesion is stron ger and emotional conflicts are rarer With regard to potential effects on firm performance there ap pears to be no generally applicable rule for the right level of gender diversity in upper echelons However critical mass theory gives an indication The reported evidence on a U shaped link means that it needs a critical mass of about 30 percent women on the board in order to realize potential benefits stemming from a gender diverse board This finding lends support to the statutory gender quotas for supervisory boards at levels between 30 and 40 percent With respect to the identified boundary conditions it might further be advisab le to develop firm or even team specific diversity policies under consideration of the respective bu siness environment the strategic orientation and the quality of existing corporate governance Possible starting points for future research activi ties are potential additional moderating variables that influence the relationship between gender diversity and firm performance or the curvilinear shape of this relationship In depth analyses of effects variations between different industries could help in designing appropriate diversity con cepts for individual firms Furthermore construction and application of innovative statistical methods aiming at mitigating the endogeneity problems are required Women on boards and in TMTs and firm performance

Vorschau DIRK-Forschungsreihe Band 21 Workforce diversity and personal policies Seite 54
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