Board Gender Diversity and Buyer-Supplier Relationships

Karca D. Aral, Erasmo Giambona, Ricardo Lopez A. and Ye Wang

MPRA Paper from University Library of Munich, Germany

Abstract: Supply chain strategy is one of the main prerogatives of a corporate board. How does corporate board diversity affect buyer-supplier relationships? Following a requirement for California firms to increase board gender diversity, affected buyers consolidated their supply base by reducing suppliers relative to other states’ firms, while retaining long-term, domestic, and innovative suppliers. These changes occur when female directors are better situated to influence corporate decisions. Alternative explanations, such as the coronavirus pandemic, cannot explain our results. Our findings indicate a heightened propensity to build stronger buyer-supplier relationships by firms with diverse boards as an important channel for increased performance.

Keywords: Corporate diversity; board gender diversity; supply chain base; buyer-supplier relationships; supply risk. (search for similar items in EconPapers)
JEL-codes: G31 G32 G33 L11 L14 L51 R3 R30 R32 R33 R4 R40 R41 (search for similar items in EconPapers)
Date: 2024-11
New Economics Papers: this item is included in nep-cfn
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