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Linking firm performance with board diversity: A literature review

Author

Listed:
  • Fawz Manyaga

    (GraduateSchool of Business, Ibn Haldun University, Istanbul. Turkey)

  • Taha Ammar

    (GraduateSchool of Business, Ibn Haldun University, Istanbul. Turkey)

Abstract

When we hear the word diversity, usually the first word that comes to mind is difference, and diversity steams from difference, in this paper, board diversity is discussed, in addition to linking it to firm performance, diversity is important, and it’s especially important in the board room of a given firm because it allows for different perspectives and opinions which can impact the decision-making process in the firm, which ultimately can affect the performance of the firm. The purpose of this paper is to give a relational guide on how board diversity can greatly impact the achievements of a firm. This paper is a theory-based study and aims to develop a critical approach of defining board diversity and linking that to the performance of the firm. This paper is a theory-based study because it utilizes the existing literature in order to determine the impact of board diversity on firm performance. This study also uses different theories and existing literature to highlight the relevance of having a diverse board in the firm. To find the relation, various studies and existing literature were analyzed to develop a critical approach to relate board diversity to firm performance. In conclusion, this paper outlines different aspects of board diversity while providing a critical look that allows us to assess the importance of board diversity and its connection to firm performance.

Suggested Citation

  • Fawz Manyaga & Taha Ammar, 2021. "Linking firm performance with board diversity: A literature review," Bussecon Review of Social Sciences (2687-2285), Bussecon International Academy, vol. 3(2), pages 10-17, April.
    • Handle: RePEc:adi:bsrsss:v:3:y:2021:i:2:p:10-17
    DOI: 10.36096/brss.v3i2.290
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    References listed on IDEAS

    as
    1. Aggarwal, Raj & Jindal, Varun & Seth, Rama, 2019. "Board diversity and firm performance: The role of business group affiliation," International Business Review, Elsevier, vol. 28(6), pages 1-1.
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