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Unity in diversity: revolutionising SMEs through inclusive corporate boards

Author

Listed:
  • Charbel Salloum
  • Hajer Jarrar
  • Laura Salloum
  • Jean-Francois Verdie

Abstract

This study investigates the implications of gender diversity within top management teams on firm performance, risk, and executive pay, concentrating on a sample of 105 small and medium-sized enterprises (SMEs) in Lebanon over a three-year period (2014-2016). Adopting a quantitative methodology, data was collected through closed-ended surveys utilising nominal, interval, and ratio scales. Analysis via linear regression revealed that while gender diversity on the board of directors showed no discernible influence on the examined variables, a heightened presence of women in managerial roles positively affected the firm's return on investment and narrowed the wage disparity. These findings challenge the prevailing view in the Lebanese context, which largely perceives women as primarily homemakers, and highlight the tangible benefits of gender diversity for SMEs' growth and evolution. Notably, the research offers a unique perspective by focusing on Lebanon, a nation grappling with the integration of gender diversity practices in boardrooms amid cultural and religious constraints.

Suggested Citation

  • Charbel Salloum & Hajer Jarrar & Laura Salloum & Jean-Francois Verdie, 2025. "Unity in diversity: revolutionising SMEs through inclusive corporate boards," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 55(3), pages 337-350.
    • Handle: RePEc:ids:ijesbu:v:55:y:2025:i:3:p:337-350
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