Toyah Miller

Demographic Diversity in the Boardroom: Mediators of the Board Diversity - Firm Performance Relationship

Whereas the majority of research on board diversity explores the direct relationship between racial and gender diversity and firm performance, this paper investigates mediators that explain how board diversity is related to firm performance. Grounded in signalling theory and the behavioural theory of the firm, we suggest that this relationship operates through two mediators: firm reputation and innovation. In a sample of Fortune 500 firms, we find a positive relationship between board racial diversity and both firm reputation and innovation. We find that reputation and innovation both partially mediate the relationship between board racial diversity and firm performance. In addition, we find a positive relationship between board gender diversity and innovation.

International Diversification: Antecedents, Outcomes, and Moderators

Pursuit of international markets and resources from foreign sources has increased dramatically during the past two decades, and the academic study of international diversification has increased concurrently. Reviewing the literature in management and related disciplines, the authors discuss recent findings of research on international diversification. A conceptual model groups key relationships, including antecedents, environmental factors, performance and process outcomes, moderators, and the characteristics of international diversification. The authors synthesize intellectual contributions, highlight unresolved issues, and provide recommendations for future research.

The Interrelationships Among Informal Institutions, Formal Institutions, and Inward Foreign Direct Investment

This research contributes to institutional theory by examining the influence of informal institutions on formal institutions and the effects of formal institutions on inward foreign direct investment. In particular, the authors integrate prior research from multiple disciplines to identify and to examine the roles of a country’s formal regulatory, political, and economic institutions. The results suggest that the country’s informal institutions, in the form of the cultural dimensions of collectivism and future orientation, shape the country’s formal institutions. In turn, each of the three formal institutions affects the country’s level of inward foreign direct investment differently. To facilitate future research, the authors also provide a set of measures for formal institutions in 50 countries.

Assessing Mission and Resources for Social Change: An Organizational Identity Perspective on Social Venture Capitalists' Decision Criteria

Social venture capitalists (SVCs) have emerged to provide a new source of funding for social entrepreneurs. Building on organizational identity theory, we examine how the dual identity of social ventures grounded within the social and entrepreneurship sectors prompts SVCs to value the resources and goals of both sectors. We use policy capturing to study the decision rules of 44 SVCs, finding that criteria of both sectors influenced SVC assessments, and entrepreneurial sector criteria were relied on most strongly in these assessments. Furthermore, not all SVCs evaluate social ventures similarly; their social investment focus influences their emphasis on social and entrepreneurial sector criteria.Social venture capitalists (SVCs) have emerged to provide a new source of funding for social entrepreneurs. Building on organizational identity theory, we examine how the dual identity of social ventures grounded within the social and entrepreneurship sectors prompts SVCs to value the resources and goals of both sectors. We use policy capturing to study the decision rules of 44 SVCs, finding that criteria of both sectors influenced SVC assessments, and entrepreneurial sector criteria were relied on most strongly in these assessments. Furthermore, not all SVCs evaluate social ventures similarly; their social investment focus influences their emphasis on social and entrepreneurial sector criteria.

The Double-Edged Nature of Board Gender Diversity: Diversity, Firm Performance, and the Power of Women Directors as Predictors of Strategic Change

Diverse boards have been seen as providing impetus for initiating change. However, diversity may introduce conflict and impede decision making, which could hinder the ability of the firm to make strategic change, especially in times when firm performance is low. Integrating threat-rigidity theory and team diversity research, we examine how board gender diversity, firm performance, and the power of women directors interact to influence the amount of strategic change. Results support a three-way interaction, indicating that when the board is not experiencing a threat as a result of low firm performance and women directors have greater power, the relationship between board gender diversity and amount of strategic change is the most positive. However, when the board is threatened by low firm performance and women directors have greater power, the relationship between board gender diversity and amount of strategic change is the most negative. Results suggest that diversity is double-edged because it can propel or impede strategic change depending on firm performance and the power of women directors.

Family Ties in Entrepreneurs' Social Networks and New Venture Growth

Family ties are an important conduit of resources for entrepreneurs, but both positive and negative outcomes can arise. Building upon a family embeddedness perspective, we develop hypotheses about curvilinear relationships between the proportion of family ties in entrepreneurs’ networks and venture growth. We test them on entrepreneurs from China, France, Russia, and the United States. These effects appear to be related to the type of entrepreneurs’ social network (business advice, emotional support, and business resources). Our results confirm effects specific to each network: an inverted U–shape for advice and emotional support networks but a U–shape for the business resource network, measuring what proportion of kin in each entrepreneurial network type is valuable to or, conversely, undermines new venture growth.

Mediation in Strategic Management Research: Conceptual Beginnings, Current Application, and Future Recommendations

Mediating effects allow strategic management researchers to understand “black box” processes underlying complex relationships whereby the effect of an independent variable is transmitted to a dependent variable through a third variable. Since the seminal work of Baron and Kenny (1986), advancements have been made in mediation analysis. Thus, literature on the latest techniques for analyzing mediating and intervening varibales is presented. In addition, strategy literature published in the Academy of Management Journal and the Strategic Management Journal between 1986 and 2005 employing tests of mediation is reviewed to better understand how mediation techniques are used by strategy scholars. Finally, implications and limitations of current mediation analysis in strategy research are discussed, and recommendations are provided to strategy scholars examining mediation.