IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v42y2021i3p551-563.html
   My bibliography  Save this article

Threshold effect of gender composition in the top management team on firm innovation: New evidence from China

Author

Listed:
  • Weili Huang

Abstract

Whether there is an optimal threshold interval of gender structure of the top management team (hereafter TMT) was determined from the view of maximizing the innovation capacity of the firm. Drawing upon the social role and cognitive theories, the present study applies the panel threshold regression model to reconcile the mixed findings with regard to the relationship between TMT gender composition and enterprise innovation using the data from 187 listed electronic firms in China during the period of 2012–2016. The results indicate that the significant three‐threshold effect does exist with performing the “N” correlation between TMT gender diversity and innovation. The optimal threshold intervals of TMT gender structure in national, coastal, and inland enterprises are [1/4, 3/10], [1/5, 1/3], and [1/10, 1/6], respectively.

Suggested Citation

  • Weili Huang, 2021. "Threshold effect of gender composition in the top management team on firm innovation: New evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(3), pages 551-563, April.
  • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:3:p:551-563
    DOI: 10.1002/mde.3253
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3253
    Download Restriction: no

    File URL: https://libkey.io/10.1002/mde.3253?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    2. Jinzhao Chen & Thérèse Quang, 2012. "International Financial Integration and Economic Growth: New Evidence on Threshold Effects," PSE Working Papers halshs-00710139, HAL.
    3. O'Reilly, Charles A., III & Tushman, Michael, 2007. "Ambidexterity as a Dynamic Capability: Resolving the Innovator's Dilemma," Research Papers 1963, Stanford University, Graduate School of Business.
    4. Alaa Alaabed & Mansur Masih, 2016. "Finance-growth nexus: Insights from an application of threshold regression model to Malaysia's dual financial system," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 16(2), pages 63-71, June.
    5. Anahí Briozzo & Diana Albanese & Diego Santolíquido, 2017. "Corporate governance, financing and gender: A study of SMEs from Argentinean Securities Markets," Contaduría y Administración, Accounting and Management, vol. 62(2), pages 9-10, Abril-Jun.
    6. Ye, Dezhu & Deng, Jie & Liu, Yi & Szewczyk, Samuel H. & Chen, Xiao, 2019. "Does board gender diversity increase dividend payouts? Analysis of global evidence," Journal of Corporate Finance, Elsevier, vol. 58(C), pages 1-26.
    7. Chen, Jian-Xun & Sharma, Piyush & Zhan, Wu & Liu, Li, 2019. "Demystifying the impact of CEO transformational leadership on firm performance: Interactive roles of exploratory innovation and environmental uncertainty," Journal of Business Research, Elsevier, vol. 96(C), pages 85-96.
    8. Barasa, Laura & Knoben, Joris & Vermeulen, Patrick & Kimuyu, Peter & Kinyanjui, Bethuel, 2017. "Institutions, resources and innovation in East Africa: A firm level approach," Research Policy, Elsevier, vol. 46(1), pages 280-291.
    9. Chen, Jinzhao & Quang, Thérèse, 2014. "The impact of international financial integration on economic growth: New evidence on threshold effects," Economic Modelling, Elsevier, vol. 42(C), pages 475-489.
    10. Ahmadi, Ali & Nakaa, Nejia & Bouri, Abdelfettah, 2018. "Chief Executive Officer attributes, board structures, gender diversity and firm performance among French CAC 40 listed firms," Research in International Business and Finance, Elsevier, vol. 44(C), pages 218-226.
    11. Stephanie Kremer & Alexander Bick & Dieter Nautz, 2013. "Inflation and growth: new evidence from a dynamic panel threshold analysis," Empirical Economics, Springer, vol. 44(2), pages 861-878, April.
    12. Charles Williams & Pao-Lien Chen & Rajshree Agarwal, 2017. "Rookies and seasoned recruits: How experience in different levels, firms, and industries shapes strategic renewal in top management," Strategic Management Journal, Wiley Blackwell, vol. 38(7), pages 1391-1415, July.
    13. Ye Dai & Gukdo Byun & Fangsheng Ding, 2019. "The Direct and Indirect Impact of Gender Diversity in New Venture Teams on Innovation Performance," Entrepreneurship Theory and Practice, , vol. 43(3), pages 505-528, May.
    14. Jun Zhang & Li Cheng, 2019. "Threshold Effect of Tourism Development on Economic Growth Following a Disaster Shock: Evidence from the Wenchuan Earthquake, P.R. China," Sustainability, MDPI, vol. 11(2), pages 1-22, January.
    15. Chen, Sheng-Tung & Lee, Chien-Chiang, 2005. "Government size and economic growth in Taiwan: A threshold regression approach," Journal of Policy Modeling, Elsevier, vol. 27(9), pages 1051-1066, December.
    16. Adusei, Michael, 2019. "Board gender diversity and the technical efficiency of microfinance institutions: Does size matter?," International Review of Economics & Finance, Elsevier, vol. 64(C), pages 393-411.
    17. Wen, Jun & Yang, Di & Feng, Gen-Fu & Dong, Minyi & Chang, Chun-Ping, 2018. "Venture capital and innovation in China: The non-linear evidence," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 148-162.
    18. Ali, Muhammad & Konrad, Alison M., 2017. "Antecedents and consequences of diversity and equality management systems: The importance of gender diversity in the TMT and lower to middle management," European Management Journal, Elsevier, vol. 35(4), pages 440-453.
    19. C. Carl Pegels & Yong I. Song & Baik Yang, 2000. "Management heterogeneity, competitive interaction groups, and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 21(9), pages 911-923, September.
    20. Liu, Xiaorui & Sun, Tao & Feng, Qiang & Zhang, Di, 2020. "Dynamic nonlinear influence of urbanization on China’s electricity consumption: Evidence from dynamic economic growth threshold effect," Energy, Elsevier, vol. 196(C).
    21. Xie, Luqun & Zhou, Jieyu & Zong, Qingqing & Lu, Qian, 2020. "Gender diversity in R&D teams and innovation efficiency: Role of the innovation context," Research Policy, Elsevier, vol. 49(1).
    22. Harris, Richard D. F. & Tzavalis, Elias, 1999. "Inference for unit roots in dynamic panels where the time dimension is fixed," Journal of Econometrics, Elsevier, vol. 91(2), pages 201-226, August.
    23. Shameen Prashantham & Mariya Eranova & Carole Couper, 2018. "Globalization, entrepreneurship and paradox thinking," Asia Pacific Journal of Management, Springer, vol. 35(1), pages 1-9, March.
    24. Weili Huang & Guangqi Ma & Xuemeng Chen, 2019. "Does the Level of Environmental Uncertainty Matter in the Effect of Returnee CEO on Innovation? Evidence from Panel Threshold Analysis," Sustainability, MDPI, vol. 11(9), pages 1-16, May.
    25. Triana, María del Carmen & Richard, Orlando C. & Su, Weichieh, 2019. "Gender diversity in senior management, strategic change, and firm performance: Examining the mediating nature of strategic change in high tech firms," Research Policy, Elsevier, vol. 48(7), pages 1681-1693.
    26. Nguyen, Huu Le & Larimo, Jorma & Wang, Yi, 2019. "Control, innovation and international joint venture performance: The moderating role of internal and external environments," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    27. He, Feng & Ma, Yaming & Zhang, Xiaojie, 2020. "How does economic policy uncertainty affect corporate Innovation?–Evidence from China listed companies," International Review of Economics & Finance, Elsevier, vol. 67(C), pages 225-239.
    28. Tine Buyl & Christophe Boone & Walter Hendriks & Paul Matthyssens, 2011. "Top Management Team Functional Diversity and Firm Performance: The Moderating Role of CEO Characteristics," Journal of Management Studies, Wiley Blackwell, vol. 48(1), pages 151-177, January.
    29. Xing Zhong & Salih Zeki Ozdemir, 2010. "Structure, learning, and the speed of innovating: a two-phase model of collective innovation using agent based modeling," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(5), pages 1459-1492, October.
    30. Dimitrios Georgakakis & Winfried Ruigrok, 2017. "CEO Succession Origin and Firm Performance: A Multilevel Study," Journal of Management Studies, Wiley Blackwell, vol. 54(1), pages 58-87, January.
    31. Yu-Shan Chen & Chun-Yu Shih & Ching-Hsun Chang, 2013. "Patents and market value in the U.S. pharmaceutical industry: new evidence from panel threshold regression," Scientometrics, Springer;Akadémiai Kiadó, vol. 97(2), pages 161-176, November.
    32. Liu, Haiyun & Islam, Mollah Aminul & Khan, Muhammad Asif & Hossain, Md Ismail & Pervaiz, Khansa, 2020. "Does financial deepening attract foreign direct investment? Fresh evidence from panel threshold analysis," Research in International Business and Finance, Elsevier, vol. 53(C).
    33. Alice Shiu, 2002. "Efficiency of Chinese Enterprises," Journal of Productivity Analysis, Springer, vol. 18(3), pages 255-267, November.
    34. Chung-Hua Shen & Chien-An Wang, 2005. "The impact of cross-ownership on the reaction of corporate investment and financing constraints: a panel threshold model," Applied Economics, Taylor & Francis Journals, vol. 37(20), pages 2315-2325.
    35. Boyd D. Cohen & Thomas J. Dean, 2005. "Information asymmetry and investor valuation of IPOs: top management team legitimacy as a capital market signal," Strategic Management Journal, Wiley Blackwell, vol. 26(7), pages 683-690, July.
    36. Pao, Hsiao-Tien & Tsai, Chung-Ming, 2011. "Multivariate Granger causality between CO2 emissions, energy consumption, FDI (foreign direct investment) and GDP (gross domestic product): Evidence from a panel of BRIC (Brazil, Russian Federation, I," Energy, Elsevier, vol. 36(1), pages 685-693.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Weili Huang & Guangqi Ma & Xuemeng Chen, 2019. "Does the Level of Environmental Uncertainty Matter in the Effect of Returnee CEO on Innovation? Evidence from Panel Threshold Analysis," Sustainability, MDPI, vol. 11(9), pages 1-16, May.
    2. Maddah, Majid & Ghaffari Nejad, Amir Hossein & Sargolzaei, Mostafa, 2022. "Natural resources, political competition, and economic growth: An empirical evidence from dynamic panel threshold kink analysis in Iranian provinces," Resources Policy, Elsevier, vol. 78(C).
    3. Asimakopoulos, Stylianos & Karavias, Yiannis, 2016. "The impact of government size on economic growth: A threshold analysis," Economics Letters, Elsevier, vol. 139(C), pages 65-68.
    4. Slesman, Ly & Baharumshah, Ahmad Zubaidi & Ra'ees, Wahabuddin, 2015. "Institutional infrastructure and economic growth in member countries of the Organization of Islamic Cooperation (OIC)," Economic Modelling, Elsevier, vol. 51(C), pages 214-226.
    5. Antonella Biscione & Dorothée Boccanfuso & Raul Caruso & Annunziata Felice, 2022. "The innovation gender gap in transition countries," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(2), pages 493-516, July.
    6. Chung‐Hua Shen & Hsing‐Hua Hsu, 2022. "The determinants of Asian banking crises—Application of the panel threshold logit model," International Review of Finance, International Review of Finance Ltd., vol. 22(1), pages 248-277, March.
    7. Awoa, Paul Awoa & Efogo, Françoise Okah & Ondoa, Henri Atangana, 2023. "Oil dependence and entrepreneurship: Non-linear evidence," Economic Systems, Elsevier, vol. 47(1).
    8. Antonella Biscione & Dorothée Boccanfuso & Raul Caruso & Annunziata de Felice, 2020. "Blinder-Oaxaca Approach to Identify Innovation Differences in Transition Countries," Cahiers de recherche 20-09, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    9. Ridha Nouira & Mohamed Kouni, 2018. "Optimal Government Size and Economic Growth in Developing and MENA Countries: A Dynamic Panel Threshold Analysis," Working Papers 1256, Economic Research Forum, revised 15 Nov 2018.
    10. Tonoyan, Vartuhi & Boudreaux, Christopher J., 2023. "Gender diversity in firm ownership: Direct and indirect effects on firm-level innovation across 29 emerging economies," Research Policy, Elsevier, vol. 52(4).
    11. Erdoğan, Seyfettin & Yıldırım, Durmuş Çağrı & Gedikli, Ayfer, 2020. "Natural resource abundance, financial development and economic growth: An investigation on Next-11 countries," Resources Policy, Elsevier, vol. 65(C).
    12. Zhu, Xiaoyang & Asimakopoulos, Stylianos & Kim, Jaebeom, 2020. "Financial development and innovation-led growth: Is too much finance better?," Journal of International Money and Finance, Elsevier, vol. 100(C).
    13. Duygu Yolcu Karadam & Nadir Ocal, 2014. "Financial Integration and Growth: A Nonlinear Panel Data Analysis," ERC Working Papers 1415, ERC - Economic Research Center, Middle East Technical University, revised Nov 2014.
    14. Fredj Jawadi & Souhir Chlibi & Abdoulkarim Idi Cheffou, 2019. "Computing stock price comovements with a three-regime panel smooth transition error correction model," Annals of Operations Research, Springer, vol. 274(1), pages 331-345, March.
    15. Baharumshah, Ahmad Zubaidi & Slesman, Ly & Wohar, Mark E., 2016. "Inflation, inflation uncertainty, and economic growth in emerging and developing countries: Panel data evidence," Economic Systems, Elsevier, vol. 40(4), pages 638-657.
    16. Slesman, Ly & Baharumshah, Ahmad Zubaidi & Azman-Saini, W.N.W., 2019. "Political institutions and finance-growth nexus in emerging markets and developing countries: A tale of one threshold," The Quarterly Review of Economics and Finance, Elsevier, vol. 72(C), pages 80-100.
    17. Combes, Jean-Louis & Minea, Alexandru & Sawadogo, Pegdéwendé Nestor, 2021. "Does the composition of government spending matter for government bond spreads?," Economic Modelling, Elsevier, vol. 96(C), pages 409-420.
    18. Samargandi, Nahla & Fidrmuc, Jan & Ghosh, Sugata, 2015. "Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries," World Development, Elsevier, vol. 68(C), pages 66-81.
    19. Chow, Sheung Chi & Vieito, João Paulo & Wong, Wing Keung, 2019. "Do both demand-following and supply-leading theories hold true in developing countries?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 513(C), pages 536-554.
    20. Nagayasu, Jun, 2012. "The threshold consumption correlation-based approach to international capital mobility: Evidence from advanced and developing countries," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 256-263.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:42:y:2021:i:3:p:551-563. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.