Facultad de Económicas y CC Empresariales

This study analyses the impact of political and regulatory pressures to increase the influence of women within the European board of directors’ network. To accomplish this, we used a longitudinal approach, tracking two centrality measures of a European directors’ network from 1999 to 2014. The network comprised publicly listed firms in 37 European countries, resulting in an extensive sample of 71,300 directors, of which around 10% were women. Governments promoting gender diversity in leadership positions have focused on two solutions: a slow track using voluntary approaches versus a fast track pushing for binding legislation. The panel data analysis shows how voluntary approaches to promote gender diversity, as implemented through corporate governance codes, have a positive and significant relationship with the ‘closeness’ of women to other directors in the network (i.e. their access to information). In contrast, binding legislation, such as gender quotas, increases women's role as unique ‘bridges’ between sub-networks – a result that serves to heighten their ‘betweenness’ centrality (i.e. their control over information).

Research question/issue This study examines the influence of group behavior on board gender diversity and identifies obstacles to its diffusion. It investigates whether boards are influenced by group behavior in determining their gender composition and explores barriers that impede the diffusion process. Research findings/insights Analyzing a network of over 18,000 US-listed boards observed over 20 years, we find a pattern of mimetic behavior, whereby boards imitate the proportion of women on boards (WoB) among their directly tied boards. We also identify resistant firms with low representation of women on their boards. Our findings suggest that, among those boards, there are heavily male-dominated boards resisting the appointment of women, even when surrounded by women directors among their tied boards. The diffusion of board gender diversity is slowed down by these resistant boards, hindering the overall progress in increasing gender diversity within the board network. Theoretical/academic implications This research contributes insights into group behavior and resistance in board gender diversity. Adopting a network theory lens, our study sheds light on interactions between firms and their connected companies in terms of imitation practices. Drawing on social identity theory, we highlight the significance of the resistance to increasing women's representation exhibited by some boards. Practitioner/policy implications Resistant boards, despite group pressure, slow down the diffusion of board gender diversity within the network, leading to overall stagnation. Understanding the sources of resistance allows an exploration of alternative measures to promote diversity without rigid mandates.