Diversity on corporate boards: A systematic review

Abstract

This study conducts a systematic review and provides a comprehensive up-to-date review of the literature about diversity on corporate boards. Unlike previous studies, we do not restrict our search to a specific type of diversity (e.g., gender diversity) or limited firm outcomes (e.g., firm performance). Our aim is to review, evaluate, synthesize, and summarize the literature and extend our knowledge on five key areas: 1) the theoretical approach (going beyond the theoretical analysis of each article by exploring how the theoretical perspective informs their focus); 2) dominant framing and theorizing (single theory vs multi-theories); 3) determinants and consequences; 4) how board diversity is defined and operationalized; and 5) the outcomes of board diversity. In reviewing the research from 2010 to February 2021 and using Saint Mary’s University Business Source Premier (SMU EBSCO) database, we identify 46 articles. Our findings reveal that agency theory no longer dominates board diversity research and has given way to institutional theory. The increasing use of institutional theory, which considers the effect of social structure on organizational outcomes, may be caused by most of the literature (based on our findings) using cross-country data. At the same time, there is a tendency to use a more multi-theoretical approach rather than a single theory one, and there are methodological limitations, including a paucity of rich data collection methods (e.g., surveys, questionnaires, and interviews). In addition, the current literature, according to the findings, focuses more on the consequences than the determinants of board diversity. Finally, our study intends to highlight and outline crucial research gaps that invite future investigation