Gender on Board and the Impact to Firm Performance through Innovation as Mediating Variable: Evidence from Indonesian non-Financial Firms

Zahwaril Hasina, Yustrida Bernawati


This study examines the effect of gender on board on firm performance in Indonesia through innovation as mediation. The independent, dependent, and mediating variable used in this research is the gender of the board of directors, firm performance, and innovation. This analysis uses Indonesian non-financial firms that perform any innovation activities and are listed on the Indonesian Stock Exchange in 2009-2019 as our sample. The method used in this study is the quantitative method and processed by using SPSS tools to test the hypothesis. The results showed that gender onboard has no effect on firm performance directly but positively affects innovation. Meanwhile, innovation has a positive effect on firm performance. Then gender on board has a positive impact on the firm performance through innovation as the mediation variable. The novelty of this research is to add an innovation variable to clarify the effect of gender on board to the firm performance. This research can be used to consider companies and other policymakers to determine the board in the company.DOI :


Gender on board; firm performance; innovation; upper echelon theory; resource-based view theory

Full Text:




Adams, R. B. and D. Ferreira (2009). "Women in the boardroom and their impact on governance and performance." Journal of financial economics 94(2): 291-309.

Amran, N. A., M. A. M. Yusof, R. Ishak and N. Aripin (2014). "Do characteristics of CEO and chairman influence government-linked companies performance?" Procedia-Social and Behavioral Sciences 109: 799-803.

Arfken, D. E., S. L. Bellar and M. M. Helms (2004). "The ultimate glass ceiling revisited: The presence of women on corporate boards." Journal of Business ethics 50(2): 177-186.

Atallah, G., C. De Fuentes and C. Panasian (2020). "Ownership, Compensation and Board Diversity as Innovation Drivers: A Comparison of US and Canadian Firms." Available at SSRN 3584949.

Barker III, V. L. and G. C. Mueller (2002). "CEO characteristics and firm R&D spending." Management Science 48(6): 782-801.

Baron, R. M. and D. A. Kenny (1986). "The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations." Journal of personality and social psychology 51(6): 1173.

Bilimoria, D. (2006). "The relationship between women corporate directors and women corporate officers." Journal of Managerial Issues: 47-61.

Campbell, K. and A. Mínguez-Vera (2008). "Gender diversity in the boardroom and firm financial performance." Journal of business ethics 83(3): 435-451.

Dale-Olsen, H., P. Schøne and M. Verner (2012). "Chapter 7: Women on Boards of Directors and Firm Performance: Evidence from Denmark and Norway." Firms, Boards and Gender Quotas: Comparative Perspectives (Comparative Social Research, Volume 29), Emerald Group Publishing Limited: 211-234.

Duppati, G., N. V. Rao, N. Matlani, F. Scrimgeour and D. Patnaik (2020). "Gender diversity and firm performance: evidence from India and Singapore." Applied Economics 52(14): 1553-1565.

Eagly, A. H. (2005). "Achieving relational authenticity in leadership: Does gender matter?" The leadership quarterly 16(3): 459-474.

Goodstein, J., K. Gautam and W. Boeker (1994). "The effects of board size and diversity on strategic change." Strategic management journal 15(3): 241-250.

Hambrick, D. C. (2007). Upper echelons theory: An update, Academy of Management Briarcliff Manor, NY 10510.

Hambrick, D. C. and P. A. Mason (1984). "Upper echelons: The organization as a reflection of its top managers." Academy of management review 9(2): 193-206.

Hayes, A. F. (2017). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach, Guilford publications.

Hernández-Lara, A. B. and J. P. Gonzales-Bustos (2020). "The influence of family businesses and women directors on innovation." Applied Economics 52(1): 36-51.

Jadiyappa, N., P. Jyothi, B. Sireesha and L. E. Hickman (2019). "CEO gender, firm performance and agency costs: evidence from India." Journal of Economic Studies.

Kaur, R. and B. Singh (2019). "Do CEO characteristics explain firm performance in India?" Journal of Strategy and Management.

Kotler, P. and K. L. Keller (2009). "Marketing management. 1. vyd. Praha: Grada, 2007, 788 s."

Laguir, I. and M. Den Besten (2016). "The influence of entrepreneur’s personal characteristics on MSEs growth through innovation." Applied Economics 48(44): 4183-4200.

Loukil, N., O. Yousfi and S. B. Cheikh (2020). "Innovation Effort And Ceo’S Characteristics." International Journal of Innovation Management 24(05): 2050079.

Markus, M. L. and D. Robey (1988). "Information technology and organizational change: causal structure in theory and research." Management science 34(5): 583-598.

McClelland, P. L., V. L. Barker III and W.-Y. Oh (2012). "CEO career horizon and tenure: Future performance implications under different contingencies." Journal of Business Research 65(9): 1387-1393.

Naseem, M. A., J. Lin, R. ur Rehman, M. I. Ahmad and R. Ali (2019). "Does capital structure mediate the link between CEO characteristics and firm performance?" Management Decision.

Oldford, E., S. Ullah and A. T. Hossain (2020). "A social capital view of women on boards and their impact on firm performance." Managerial Finance.

Peni, E. (2014). "CEO and chairperson characteristics and firm performance." Journal of Management & Governance 18(1): 185-205.

Post, C. and K. Byron (2015). "Women on boards and firm financial performance: A meta-analysis." Academy of management Journal 58(5): 1546-1571.

Rose, C. (2007). "Does female board representation influence firm performance? The Danish evidence." Corporate Governance: An International Review 15(2): 404-413.

Ruiqi, W., F. Wang, L. Xu and C. Yuan (2017). "R&D expenditures, ultimate ownership and future performance: Evidence from China." Journal of Business Research 71: 47-54.

Shukeri, S. N., O. W. Shin and M. S. Shaari (2012). "Does board of director's characteristics affect firm performance? Evidence from Malaysian public listed companies." International Business Research 5(9): 120.

Smith, N., V. Smith and M. Verner (2006). "Do women in top management affect firm performance? A panel study of 2,500 Danish firms." International Journal of productivity and Performance management.

Sofian, S. and H. Wijaya (2020). "Female in board and earnings management: Evidence in Indonesia non-financial firms." Jurnal Keuangan dan Perbankan 24(4): 449-462.

Tebourbi, I., I. W. K. Ting, H. T. M. Le and Q. L. Kweh (2020). "R&D investment and future firm performance: The role of managerial overconfidence and government ownership." Managerial and Decision Economics.

Tleubayev, A., I. Bobojonov, T. Gagalyuk and T. Glauben (2020). "Board gender diversity and firm performance: evidence from the Russian agri-food industry." International Food and Agribusiness Management Review 23(1030-2020-236): 35-54.

Torchia, M., A. Calabro, P. Gabaldon and S. B. Kanadli (2018). "Women directors contribution to organizational innovation: A behavioral approach." Scandinavian Journal of Management 34(2): 215-224.

Wang, G., R. M. Holmes Jr, I. S. Oh and W. Zhu (2016). "Do CEOs matter to firm strategic actions and firm performance? A meta‐analytic investigation based on upper echelons theory." Personnel Psychology 69(4): 775-862.

Wernerfelt, B. (1984). "A resource‐based view of the firm." Strategic management journal 5(2): 171-180.

Zahra, S. A. and D. M. Garvis (2000). "International corporate entrepreneurship and firm performance: The moderating effect of international environmental hostility." Journal of business venturing 15(5-6): 469-492.



  • There are currently no refbacks.

Jurnal Keuangan dan Perbankan (Journal of Finance and Banking)

Diploma Program of Banking and Finance, Faculty of Economics and Business, University of Merdeka Malang

Published by University of Merdeka Malang

Mailing Address:

2nd floor Finance and Banking Building, Jl. Terusan Raya Dieng No. 57 Malang, East Java, Indonesia
Phone: +62 812-2710-3387 or +62 813-3180-1534

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0