The impact of board's gender diversity for innovation

Abstract

This thesis investigates the impact of gender diversity on corporate boards and its connection to innovation. Through the method of comparative and descriptive analysis by the 50 most innovative companies and the S&P 500 index, the study aims to shed light on the role of gender diversity in fostering innovation within organizations. While previous research have yielded important results in theoretical terms, this study explores the practical analysis of data to prove the relationship between these two concepts. The research methodology involves an examination of the theoretical links between the concepts of innovation and diversity of gender in order to connect them in a correlative evaluation. Further, it utilizes quantitative measures, including the Board of Directors composition in terms of gender diversity metrics and innovation rankings, to provide a comprehensive analysis of the link between these factors. On the first step, the correlation between these two factors is proved through important researches that associate the connection between Innovation and Diversity of the Board, considering female board representation high associated with greater innovative success, and thus enhancing firm performance in innovation-intensive industries (Jie et al 2019), However, when assessing the 2022 data from companies in order to propose a comparison and descriptive analysis to prove the relationship between gender diversity of the board and innovation, we could verify that companies set as Innovative did not show higher levels of gender diversity of the board compared to the average. In other words, our hypothesis was refuted. Furthermore, in order to enhance the research and also understanding the path of different companies in terms of diversity and inclusion actions, we could talk to two of the most important companies of Brazil. Both understand diversity and inclusion as one of the most important matters in terms of a company's future. The theme is common, since guaranteeing that you have in your workforce similarity to the society you are inserted in, is fundamental with the purpose of understanding the level of sustainability your business is set. Finally, although it was not possible to prove the connection between innovation and gender diversity of the board through the chosen method, the implications of this research contribute to the ongoing discourse on gender diversity and innovation, emphasizing the importance of fostering diverse and inclusive corporate cultures.