Gender diversity, inclusive innovation and firm performance

Abstract

This study delves into intra-organizational dimensions that might impact inclusive innovation. Based on the expectation states theory, we explore how gender diversity in management positions and on the board of directors affects inclusive innovation. Furthermore, drawing on the signaling theory, we examine the relationship between inclusive innovation and a firm's performance. Using a comprehensive panel data of European manufacturing companies for a period of 10 years, we provide evidence that gender diversity in management positions and the presence of at least one woman on the board of directors have a positive effect on inclusive innovation. Our results also reveal the economic value of such strategy, showing that inclusive innovation positively influences performance. Implications for theory and managerial practice are discussed.