Board gender diversity, nonmarket strategy and firm performance: evidence from emerging markets MNCs
Board gender diversity, nonmarket strategy and firm performance: evidence from emerging markets MNCs
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.
Corporate decision making, Emerging market multinationals, Legitimacy, Nonmarket strategy, board gender diversity, Board gender diversity
Saeed, Abubakr
9b178710-8c61-4298-809a-0d3f0b674ab9
Baloch, Muhammad Saad
0baa859e-4d0d-4dda-8433-d813655c88b5
Liedong, Tahiru Azaaviele
984123fb-f587-4d3a-b331-70af28aed8cb
Rajwani, Tazeeb
4e2beda0-4f14-417f-9d3a-b06e19f4257f
25 June 2024
Saeed, Abubakr
9b178710-8c61-4298-809a-0d3f0b674ab9
Baloch, Muhammad Saad
0baa859e-4d0d-4dda-8433-d813655c88b5
Liedong, Tahiru Azaaviele
984123fb-f587-4d3a-b331-70af28aed8cb
Rajwani, Tazeeb
4e2beda0-4f14-417f-9d3a-b06e19f4257f
Saeed, Abubakr, Baloch, Muhammad Saad, Liedong, Tahiru Azaaviele and Rajwani, Tazeeb
(2024)
Board gender diversity, nonmarket strategy and firm performance: evidence from emerging markets MNCs.
Research in International Business and Finance, 71, [102462].
(doi:10.1016/j.ribaf.2024.102462).
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.
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Accepted/In Press date: 20 June 2024
e-pub ahead of print date: 25 June 2024
Published date: 25 June 2024
Additional Information:
Publisher Copyright:
© 2024 Elsevier B.V.
Keywords:
Corporate decision making, Emerging market multinationals, Legitimacy, Nonmarket strategy, board gender diversity, Board gender diversity
Identifiers
Local EPrints ID: 491654
URI: http://eprints.soton.ac.uk/id/eprint/491654
ISSN: 0275-5319
PURE UUID: 63cb965e-eb33-4912-a5f4-29347fc3dda7
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Date deposited: 03 Jul 2024 09:39
Last modified: 17 Aug 2024 02:14
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Contributors
Author:
Abubakr Saeed
Author:
Muhammad Saad Baloch
Author:
Tahiru Azaaviele Liedong
Author:
Tazeeb Rajwani
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