Communications of the ACM
Diversity of Experience Among Board Members Leads to Innovation, Study Finds
Empirical evidence supports the benefit of board experiential diversity for corporate radical innovation.
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Research from the Indiana University Kelley School of Business finds that diverse educational, industrial, and organizational experiences among managers and board members leads to R&D innovation, creating economic and social value.
"We looked at outcomes and found radical innovation when directors had more diverse experience, helping to guide firms toward more cutting-edge exploration and success," says Aurora Genin, assistant professor of management and entrepreneurship, and co-author of the study published in Strategic Management Journal.
"While demographically diverse directors may improve governance to yield immediate benefits such as higher R&D efficiency, those with complementary expertise across various domains may offer unique advice to support radical innovation toward long-term value creation," the authors write.
From Indiana University
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