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EVALUATING THE MEDIATING ROLE OF STRATEGIC CHANGE BETWEEN THE RELATIONSHIP OF GENDER DIVERSITY IN SENIOR MANAGEMENT AND FIRM PERFORMANCE IN PAKISTAN

Year 2020, Volume: 3 Issue: 1, 69 - 84, 31.03.2020

Abstract

Recently in Pakistan, enough women have joined top leadership positions in the different organizations which prove that the gender diversity is at full boom in this sector. The existing study proposed the concept of gender diversity in the top management of the firms can be helpful in getting strategic change in non financial firms, especially under conditions that the gender diversity at senior management can have significant effects on the firm decisions and also it can be helpful in creating strategic change. The members education background, age, industry experience are also the significant factors. The study has used the pooled OLS model on the basis of diagnostic model i.e. chow test. The findings argued that senior management gender diversity is having positive association with the firm performance. The findings for the senior management gender diversity is having positive relationship with the firm value and argued that when the firm is having higher gender diversity on their senior management level will have positive effects on the firm market value. This gender diversity will transmit positive signals to the market investors and the investors will prefer to invest in the firm having higher gender diversity on their senior management level. The member educational background is having significant relationship with performance of the firm. The findings suggested that the female member having higher education background will be prefer to include in the board of senior management and this will show positive effects on the firm value.

References

  • Andreas, S., Werbel, J., Hofman, H. & Henriques, P. (2016). Managerial Gender Diversity and Firm Performance: An Integration of Different Theoretical Perspectives. Group and Organization Management, 41(1), 5-31.
  • Abdullah, S. N., Ismail, K. N. I. K., & Nachum, L. (2016). Does having women on boards create value? The impact of societal perceptions and corporate governance in emerging markets. Strategic Management Journal, 37(3), 466–476.
  • Ararat, M., Aksu, M., &Tansel Cetin, A. (2015). How board diversity affects firm performance in emerging markets: Evidence on channels in controlled firms Corporate Governance: An International Review, 23 (2), 83–103.
  • Civil Rights Act (1964). Public Law 88-352 (Title VII), Vol. 42 U.S. Code, Section 2000e.
  • Catalyst (2014a). Quick Take: Women in the United States. New York: Catalyst. Catalyst
  • Catalyst (2014b). Quick Take: Women in Management, Global Comparison. New York: Catalyst.
  • Chapple, L., & Humphrey, J. E. (2014). Does board gender diversity have a financial impact?Evidence using stock portfolio performance. Journal of Business Ethics, 122(4), 709–723
  • Campbell, K., &Mínguez-Vera, A. (2008). Gender diversity in the boardroom and firm financialperformance. Journal of Business Ethics, 83(3), 435–451.
  • Chapple, L., & Humphrey, J. E. (2014). Does board gender diversity have a financial impact? Evidence using stock portfolio performance. Journal of Business Ethics, 122(4), 709–723.
  • Dobbin, F. & Jung, J. (2011). Corporate Board Gender Diversity and Stock Performance: The Competence Gap or Institutional Investor Bias? North Carolina Law Review, 89(3), 809-838.
  • Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. The Journal of Law and Economics, 26(2), 301–325.
  • Helfat, C., Harris, D., & Wolfson, P. (2007). The pipeline to the top: Women and men in the top executive ranks of U.S. corporations. Academy of Management Perspectives, 20, 42–64.
  • Harrison, D.A. & Klein, K.J. (2007). What's the difference? Diversity constructs as separation, variety or disparity in organizations. Academy of Management Review, 32(4), 1199–1228.
  • Hillman, A. J., Cannella, A. A., Jr, & Harris, I. C. (2002). Women and racial minorities in the boardroom: How do directors differ?.Journal of Management, 28(6), 747–763.
  • Hillman, A. J., Cannella, A. A., &Paetzold, R. L. (2000). The resource dependence role of corporate directors: Strategic adaptation of board composition in response to environmental change. Journal of Management Studies, 37(2), 235–256.
  • Hammad, H., Mirza. S. Sumaira, A., Farzana, R. (2012), Gender Diversity and Firm Performance: Evidence from Pakistan, Journal of Social and Development Sciences Vol. 3, No. 5, pp. 161-166
  • Joecks, J., Pull, K., & Vetter, K. (2013). Gender diversity in the boardroom and firm performance: What exactly constitutes a “critical mass?”. Journal of Business Ethics, 118(1), 61–72.
  • Koenig, A. M., Eagly, A. H., Mitchell, A. A., &Ristikari, T. (2011). Are leader stereotypes masculine? A meta-analysis of three research paradigms. Psychological Bulletin, 137, 616-642.
  • Liu, Y., Wei, Z., &Xie, F. (2014). Do women directors improve firm performance in China? Journal of Corporate Finance, 28, 169–184
  • Low, D. C., Roberts, H., & Whiting, R. H. (2015). Board gender diversity and firm performance: Empirical evidence from Hong Kong, South Korea, Malaysia and Singapore. Pacific-Basin Finance Journal, 35, 381–401
  • Liao, L., Luo, L., & Tang, Q. (2015). Gender diversity, board independence, environmental committee and greenhouse gas disclosure. The British Accounting Review, 47(4), 409–424
  • Nguyen, T., Locke, S., & Reddy, K. (2015). Does boardroom gender diversity matter? Evidence from a transitional economy. International Review of Economics & Finance, 37, 184–202.
  • Ntim, C. G. (2015). Board diversity and organizational valuation: Unravelling the effects of ethnicity and gender. Journal of Management & Governance, 19(1), 167–195
  • Omanovic, V. (2009). Diversity and its management as a dialectical process: Encountering Sweden and the US. Scandinavian Journal of Management, 25, 352-362.
  • Pfeffer, J., &Salancik, G. R. (2003). The external control of organizations: A resource dependence perspective. Stanford University Press
  • President’s Commission on the Status of Women (1963). Report of the President’s commission on the status of women. Washington, D.C.: US Government Printing Office.
  • Perrault, E. (2015). Why does board gender diversity matter and how do we get there? The role of shareholder activism in deinstitutionalizing old boys’ networks. Journal of Business Ethics, 128(1), 149–165
  • Rose, C. (2007). Does female board representation influence firm performance? The Danish evidence. Corporate Governance: An International Review, 15(2), 404–413
  • Shore, L. M., Chung-Herrera, B. G., Dean, M. A., Holcombe-Erhart, K., Jung, D. I., Randel, A. E., & Singh, G. (2009). Diversity in organizations: Where are we now and where are we going? Human Resource Management Review, 19, 117-133.
  • Trianaa, M. Orlando, C., Weichieh, S. (2019), Gender diversity in senior management, strategic change, and firm performance: Examining the mediating nature of strategic change in high tech firms, Research Policy, 48; 1681-1693
  • Upadhyay, A., & Zeng, H. (2014). Gender and ethnic diversity on boards and corporate information environment. Journal of Business Research, 67(11), 2456–2463.

PAKİSTAN'DA ÜST YÖNETİMDEKİ CİNSİYET ÇEŞİTLİLİĞİ İLE FİRMA PERFORMANSI ARASINDAKİ İLİŞKİDE STRATEJİK DEĞİŞİMİN ARACILIK ROLÜ

Year 2020, Volume: 3 Issue: 1, 69 - 84, 31.03.2020

Abstract

Son zamanlarda Pakistan’da bir çok kadın farklı cinsiyet farklılığı konusunda tam bir patlama yaşayan kar amaçsız örgütlerde liderlik pozisyonlarına gelmişlerdir. Bu çalışma, firmaların üst yönetimlerinde cinsiyet çeşitliliği kavramını ortaya koymak üzere yapılmıştır. Bu sayede, kar amacı gütmeyen, özellikle de üst yönetim kademesinde cinsiyet çeşitliliği olan örgütlerin stratejik değişim yaşamalarına veya bu değişimi ortaya koymalarına yardımcı olunabilir. Çalışmada ayrıca eğitim seviyeleri, yaş, sektör deneyimi önemli değişkenler olarak ele alınmıştır. Çalışmada chow test benzeri diagnostik temelli OLS model kullanılmıştır. Bulgular, üst kademe cinsiyet çeşitliliğinin örgüt performansı ile olumlu bir bağı olduğunu göstermiştir. Ayrıca, üst yönetim kademesindeki cinsiyet çeşitliliği firma değeri ile de olumlu yönde ilişkilidir, bu sonuç üst kademe yönetim seviyesinde cinsiyet çeşitliliğini arttırabilen örgütlerin piyasa değerlerinin de buna paralel şekilde arttığını ortaya koymaktadır. Cinsiyet çeşitliliği pazardaki potansiyel yatırımcılara olumlu sinyaller gönderecekler ve bu yatırımcılar da üst yönetim kademesinde daha fazla cinsiyet çeşitliliği olan firmalara yatırım yapmayı tercih edebileceklerdir. Çalışanların eğitim seviyeleri de örgütün performansı ile olumlu yönde ilişkili olarak görülmüştür. Sonuçlar, yüksek eğitim seviyesinde olan kadın çalışanların üst kademe yönetim seviyesi için tercih edilebileceğini, bu durumun da sonuçta örgütün piyasa değerine olumlu yönde katkı yapabileceğini ortaya koymuştur.

References

  • Andreas, S., Werbel, J., Hofman, H. & Henriques, P. (2016). Managerial Gender Diversity and Firm Performance: An Integration of Different Theoretical Perspectives. Group and Organization Management, 41(1), 5-31.
  • Abdullah, S. N., Ismail, K. N. I. K., & Nachum, L. (2016). Does having women on boards create value? The impact of societal perceptions and corporate governance in emerging markets. Strategic Management Journal, 37(3), 466–476.
  • Ararat, M., Aksu, M., &Tansel Cetin, A. (2015). How board diversity affects firm performance in emerging markets: Evidence on channels in controlled firms Corporate Governance: An International Review, 23 (2), 83–103.
  • Civil Rights Act (1964). Public Law 88-352 (Title VII), Vol. 42 U.S. Code, Section 2000e.
  • Catalyst (2014a). Quick Take: Women in the United States. New York: Catalyst. Catalyst
  • Catalyst (2014b). Quick Take: Women in Management, Global Comparison. New York: Catalyst.
  • Chapple, L., & Humphrey, J. E. (2014). Does board gender diversity have a financial impact?Evidence using stock portfolio performance. Journal of Business Ethics, 122(4), 709–723
  • Campbell, K., &Mínguez-Vera, A. (2008). Gender diversity in the boardroom and firm financialperformance. Journal of Business Ethics, 83(3), 435–451.
  • Chapple, L., & Humphrey, J. E. (2014). Does board gender diversity have a financial impact? Evidence using stock portfolio performance. Journal of Business Ethics, 122(4), 709–723.
  • Dobbin, F. & Jung, J. (2011). Corporate Board Gender Diversity and Stock Performance: The Competence Gap or Institutional Investor Bias? North Carolina Law Review, 89(3), 809-838.
  • Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. The Journal of Law and Economics, 26(2), 301–325.
  • Helfat, C., Harris, D., & Wolfson, P. (2007). The pipeline to the top: Women and men in the top executive ranks of U.S. corporations. Academy of Management Perspectives, 20, 42–64.
  • Harrison, D.A. & Klein, K.J. (2007). What's the difference? Diversity constructs as separation, variety or disparity in organizations. Academy of Management Review, 32(4), 1199–1228.
  • Hillman, A. J., Cannella, A. A., Jr, & Harris, I. C. (2002). Women and racial minorities in the boardroom: How do directors differ?.Journal of Management, 28(6), 747–763.
  • Hillman, A. J., Cannella, A. A., &Paetzold, R. L. (2000). The resource dependence role of corporate directors: Strategic adaptation of board composition in response to environmental change. Journal of Management Studies, 37(2), 235–256.
  • Hammad, H., Mirza. S. Sumaira, A., Farzana, R. (2012), Gender Diversity and Firm Performance: Evidence from Pakistan, Journal of Social and Development Sciences Vol. 3, No. 5, pp. 161-166
  • Joecks, J., Pull, K., & Vetter, K. (2013). Gender diversity in the boardroom and firm performance: What exactly constitutes a “critical mass?”. Journal of Business Ethics, 118(1), 61–72.
  • Koenig, A. M., Eagly, A. H., Mitchell, A. A., &Ristikari, T. (2011). Are leader stereotypes masculine? A meta-analysis of three research paradigms. Psychological Bulletin, 137, 616-642.
  • Liu, Y., Wei, Z., &Xie, F. (2014). Do women directors improve firm performance in China? Journal of Corporate Finance, 28, 169–184
  • Low, D. C., Roberts, H., & Whiting, R. H. (2015). Board gender diversity and firm performance: Empirical evidence from Hong Kong, South Korea, Malaysia and Singapore. Pacific-Basin Finance Journal, 35, 381–401
  • Liao, L., Luo, L., & Tang, Q. (2015). Gender diversity, board independence, environmental committee and greenhouse gas disclosure. The British Accounting Review, 47(4), 409–424
  • Nguyen, T., Locke, S., & Reddy, K. (2015). Does boardroom gender diversity matter? Evidence from a transitional economy. International Review of Economics & Finance, 37, 184–202.
  • Ntim, C. G. (2015). Board diversity and organizational valuation: Unravelling the effects of ethnicity and gender. Journal of Management & Governance, 19(1), 167–195
  • Omanovic, V. (2009). Diversity and its management as a dialectical process: Encountering Sweden and the US. Scandinavian Journal of Management, 25, 352-362.
  • Pfeffer, J., &Salancik, G. R. (2003). The external control of organizations: A resource dependence perspective. Stanford University Press
  • President’s Commission on the Status of Women (1963). Report of the President’s commission on the status of women. Washington, D.C.: US Government Printing Office.
  • Perrault, E. (2015). Why does board gender diversity matter and how do we get there? The role of shareholder activism in deinstitutionalizing old boys’ networks. Journal of Business Ethics, 128(1), 149–165
  • Rose, C. (2007). Does female board representation influence firm performance? The Danish evidence. Corporate Governance: An International Review, 15(2), 404–413
  • Shore, L. M., Chung-Herrera, B. G., Dean, M. A., Holcombe-Erhart, K., Jung, D. I., Randel, A. E., & Singh, G. (2009). Diversity in organizations: Where are we now and where are we going? Human Resource Management Review, 19, 117-133.
  • Trianaa, M. Orlando, C., Weichieh, S. (2019), Gender diversity in senior management, strategic change, and firm performance: Examining the mediating nature of strategic change in high tech firms, Research Policy, 48; 1681-1693
  • Upadhyay, A., & Zeng, H. (2014). Gender and ethnic diversity on boards and corporate information environment. Journal of Business Research, 67(11), 2456–2463.
There are 31 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Araştırma Makaleleri
Authors

Liaqat Ali

Waheed Ullah

Saima Urooge

Muhammad Farooq Jan

Publication Date March 31, 2020
Published in Issue Year 2020 Volume: 3 Issue: 1

Cite

APA Ali, L., Ullah, W., Urooge, S., Farooq Jan, M. (2020). EVALUATING THE MEDIATING ROLE OF STRATEGIC CHANGE BETWEEN THE RELATIONSHIP OF GENDER DIVERSITY IN SENIOR MANAGEMENT AND FIRM PERFORMANCE IN PAKISTAN. Stratejik Yönetim Araştırmaları Dergisi, 3(1), 69-84.