Troesh Speaker Series: Diversity Cascades

When

Mar. 29, 2019, 10:30am to 12pm

Campus Location

Office/Remote Location

Room 216

Description

Diversity Cascades: How Boards Influence Invention Quality

Presented by Guoli Chen is an Associate Professor of Strategy at INSEAD

How does board diversity influence a firm’s invention outcomes? The role of the board in corporate governance is well established, but less is known about the board’s influence on the quality of the firm’s inventions given that it is typically far removed from invention activities. We propose a theory of diversity cascades in organizations and suggest that board diversity has a positive – albeit indirect – influence on the firm’s production of higher quality inventions. This relationship is mediated by the diversity of the top management team and inventor diversity, as board diversity cascades from the top to the lower ranks of the organization. The indirect effect is strengthened by the presence of inside executive directors who span the board-TMT boundary, and is weakened when the firm decision-making structure is decentralized. We find support for our hypotheses using a longitudinal sample of S&P 1,500 firms over the period 2000-2011

Admission Information

This event is free and open to all UNLV students, faculty and staff.

Contact Information

Marie Arroyo

Event Sponsor

Troesh Center for Entrepreneurship and Innovation

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