The effect of board gender diversity on corporate reputation and the mediating role of organizational legitimacy
Keywords
Loading...
Authors
Issue Date
2023-06-26
Language
en
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Existing literature in the board gender diversity – corporate reputation field has primarily focused on the belief that female directors bring unique and valuable skills that enhance board decision-making and subsequently influence future organizational performance and ultimately corporate reputation. While attention to the organizational legitimacy perspective, which examines whether convergence toward a norm of gender diversity on boards affects corporate reputation, is missing. Therefore, the purpose of this study is to contribute to the literature by investigating the relationship between board gender diversity and corporate reputation with organizational legitimacy as a mediating factor. This study investigates this question by using an experimental vignette study conducted among Master's students in Business Administration at Radboud University. The initial expectation was that an increase in board gender diversity would lead to an increase in organizational legitimacy, which in turn would positively impact corporate reputation. However, the findings of this study did not support these expectations. While the mediating effect of organizational legitimacy on the relationship between board gender diversity and corporate reputation is significant, the relationship between board gender diversity and organizational legitimacy is found to be negative. As a result, the main contribution of this study suggests that increasing gender diversity within boards of directors will not lead to improved organizational legitimacy which in turn also negatively affects corporate reputation. It is therefore important for organizations that they need to ensure that board gender diversity is not just a symbolic action, but involves women on the board actively in decision-making and gives them a voice in shaping the strategy and policies of organizations.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen