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
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.
Based on the above mentioned theories a set of...
Please join StudyMode to read the full document