Corporate Boards that tap into a diversity of sources for information can be expected to make better decisions. Diversity in a team and a board can, however, also impede team performance, recent work we presented in Management Decision points out.
Measuring the diversity of boards in four different ways, two of which are person-related (age and gender) and two information-based (education and tenure), we analyze which kind of diversity ensures that the firm governed by a board will invest more R&D.
We find, unexpectedly, that tenure diversity leads to firms being less innovative, while education diversity and gender diversity make firms more innovative. Why? Find out more here.
Dolfsma, W. Midavaine, J. & Aalbers, H.L. (2016). Board Diversity and R&D Investment.Management Decision.