The intriguing effect of women board representation and women power on global supply base risk

Purpose Heeding the various calls for research on the effects of gender diversity within the operations and supply chain management (OSCM) domain, we study the intriguing curvilinear effect of women’s board representation on global supply base risk. We also evaluate the contingent effects of women power – structural and expert – on this effect. Design/methodology/approach We hypothesized the proportion of women on boards to have a curvilinear (U-shaped) effect on global supply base risk. Additionally, women’s interlocks and women in C-suites are conjectured to flatten this U-shaped effect. The proposed hypotheses are tested using a unique panel dataset of global US-based public firms with suppliers worldwide; this dataset was compiled using four different secondary data sources. Findings We found that our first hypothesis regarding the U-shaped effect of the proportion of women on boards was supported. However, while the negative moderation effect of women interlocks was significant, the moderation effect of women in C-suite was not. In effect, these results suggest that when it comes to women’s board representation, the presence of both merit and power is better than power alone. Originality/value Given the considerable lack of empirical research linking gender diversity and supply chain decision-making, our findings contribute significantly to the literature on gender diversity within OSCM. Our study draws on the double-edged effect of the proportion of women on boards by juxtaposing social role and social identity theories, and in doing so, shows that women’s board representation might not always result in lower risk. By testing the intriguing effects of women’s board representation, our study contributes to theory and practice.