Board gender diversity, critical masses, and organizational problems of non-profit sport clubs

Abstract

ABSTRACT Research question: This study examines the effect of board gender diversity and a critical mass of women on the board on organizational problems of non-profit sport clubs. It relies on theories from social categorization and information/decision-making perspectives and on critical mass theory. Research methods: Four waves of data from a German sport club panel (2009–2015; n = 6504) are used which allow analyzing causal effects with lagged variables. Gender diversity was measured with the share of women on the board, the Blau index, and the number of women on the board. The perceived severity of human resource, financial, facility, and development problems represent the dependent variables. Results and findings: The results of regression analyses show that board gender diversity significantly reduces human resource and financial problems. Human resource problems are even smallest in clubs with an overbalanced board (≥60% women), while facility problems are perceived as bigger in such clubs. The results provided evidence for critical masses of one or at least three women for reducing human resource problems and of at least four women for perceiving bigger facility problems. Development problems are not impacted by board gender diversity or critical masses. Implications: The findings for human resource and financial problems support the information/decision-making perspective, suggesting that board gender diversity benefits the organization because of diversity in resource access, human and social capital, and improved quality of decision-making. Thus, increasing gender diversity of the board can be a way to reduce problems in these areas.