HBR published a study exploring the impact of a more gender diverse C-suite on the way a company thinks.
The study concludes that adding Women to the C-Suite increases openness to change. As companies continue to face significant change during the pandemic, it will be interesting to see if companies with a high gender diversity outperform companies with a mainly male C-Suite.
Despite numerous studies linking greater representation of women in the C-suite to positive firm outcomes, the mechanisms driving those changes have largely remained unclear. Our study begins to explore those mechanisms, finding that when women are appointed to the C-suite, they catalyze fundamental shifts in the top management team’s risk tolerance, openness to change, and focus on M&As versus R&D.
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