Gender and ethnic diversity and international success of Hollywood movies

Does greater social inclusion and diversity lead to better commercial outcomes in cultural industries? We explore this research question in the context of Hollywood by examining how gender representation and ethnic diversity in movie casts influence international box office success. Our findings, based on data from 2000 to 2021 for >3000 Hollywood movies, suggest that gender diversity positively impacts international box office performance, whereas ethnic diversity has a negative effect. However, these relationships are contingent on movie genre (culture-neutral versus culture-sensitive) and international coproduction of movies. A culturally neutral genre with universal appeal weakens both the positive impact of gender diversity and the negative impact of ethnic diversity on international box office performance. In contrast, international co-production of movies strengthens the positive impact of gender diversity and the negative impact of ethnic diversity on international box office performance. Our study contributes to the growing international business (IB) literature by shedding light on how diversity influences internationalization and commercial success in global cultural industries.