Board of Directors’ Diversity, Creativity, and Cognitive Conflict

Abstract

In this study, we examine the relationship between board diversity in terms of member background and personality (deep-level diversity) and board creativity and cognitive conflict, controlled for the mediating role of board members’ interactions. Using a sample of 385 Norwegian companies, the results provide strong support for the notion that the higher the level of board diversity with respect to the board members’ backgrounds and personalities, the higher the degree of board creativity and cognitive conflict during the decision-making process. Moreover, our empirical evidence supports the mediating role of interactions among board members. The study supports the increasing importance of going beyond “surface level diversity” (e.g., diversity in term of gender) and investigating characteristics that are less visible and that are labelled “deep-level” diversity attributes.