Building the Women Directorship Pipeline in India: An Exploratory Study

Women constitute 48% of the population of India; yet their presence on the boards of companies has not been substantial. This paper attempts to define the pathways available to women on Indian boards. A qualitative research methodology with 15 in-depth interviews with women directors was adopted to study the phenomena. The study’s findings indicate that while the identification of women directors is largely a non-structured, idiosyncratic process, social capital — which includes the individual’s network ties and reputation — is a critical aspect aiding director identification. We also find the role of the chairperson to be critical in facilitating the participation of women directors on boards. Organisational characteristics and the credibility of co-directors are important considerations in the decision to join the board. The policy implications include the need for more structured approaches to identification, effective director assessment processes, and multi-stakeholder intervention to build the pipeline of women directors for the future.

[1]  Aparna Joshi,et al.  Bridging Domains in Workplace Demography Research: A Review and Reconceptualization , 2011 .

[2]  Michael T. Adams,et al.  Composing a Balanced and Effective Board to Meet New Governance Mandates , 2004 .

[3]  Albert V. Bruno,et al.  The CEO, venture capitalists, and the board , 1993 .

[4]  Sigal G. Barsade,et al.  To Your Heart's Content: A Model of Affective Diversity in Top Management Teams , 2000 .

[5]  Soontae An,et al.  Interlocking of Newspaper Companies with Financial Institutions and Leading Advertisers , 2004 .

[6]  Frances J. Milliken,et al.  Cognition and corporate governance: Understanding boards of directors as strategic decision making groups , 1999 .

[7]  Leila Hoteit,et al.  Empowering the third billion: women and the world of work in 2012 , 2012 .

[8]  Aaron D. Hill,et al.  Board Composition Beyond Independence , 2013 .

[9]  Jay W. Lorsch,et al.  Pawns or Potentates: The Reality of America's Corporate Boards , 1989 .

[10]  Mark S. Mizruchi,et al.  Board Composition and Corporate Financing: The Impact of Financial Institution Representation on Borrowing , 1993 .

[11]  Amy K. Dittmar,et al.  The Changing of the Boards: The Impact on Firm Valuation of Mandated Female Board Representation , 2011 .

[12]  S. Klein,et al.  Corporate Governance, Board Diversity, and Firm Value , 2003 .

[13]  Pamela Paxton,et al.  Workforce Diversity and Inequality : Power , Status , and Numbers , 2007 .

[14]  Gavin J. Nicholson,et al.  A Framework for Diagnosing Board Effectiveness , 2004 .

[15]  Caspar Rose,et al.  Does Female Board Representation Influence Firm Performance? The Danish Evidence , 2007 .

[16]  Douglas M. Branson An Australian Perspective on a Global Phenomenon: Initiatives to Place Women on Corporate Boards of Directors , 2012 .

[17]  Amy J. Hillman,et al.  A Multidisciplinary Review of the Director Selection Literature , 2012 .

[18]  N. Rajagopalan,et al.  The effects of board human and social capital on investor reactions to new CEO selection , 2011 .

[19]  Lisa M. Fairfax,et al.  Clogs in the Pipeline: The Mixed Data on Women Directors and Continued Barriers to Their Advancement , 2006 .

[20]  B. Simkins,et al.  The Diversity of Corporate Board Committees and Financial Performance , 2008 .

[21]  Claudia J. Ferrante,et al.  Wall Street Reaction to Women in IPOs , 2007 .

[22]  Susan Parker,et al.  Female Board Presence and the Likelihood of Financial Restatement , 2012 .

[23]  Wayne F. Cascio,et al.  Board governance: A social systems perspective , 2004 .

[24]  J. Pfeffer,et al.  The External Control of Organizations. , 1978 .

[25]  Mark S. Mizruchi,et al.  A Longitudinal Study of Borrowing by Large American Corporations , 1994 .

[26]  Craig A. Peterson,et al.  Women’s Roles on U.S. Fortune 500 Boards: Director Expertise and Committee Memberships , 2007 .

[27]  Susan Vinnicombe,et al.  Standard Chartered Bank: Women on Corporate Boards in India 2010 , 2010 .

[28]  Amy J. Hillman,et al.  Women and Racial Minorities in the Boardroom: How Do Directors Differ? , 2002 .

[29]  Jonathan L. Johnson,et al.  Boards of Directors: A Review and Research Agenda: , 1996 .

[30]  A. Hillman,et al.  Boards of Directors and Firm Performance: Integrating Agency and Resource Dependence Perspectives , 2003 .

[31]  Jian Zhou,et al.  Audit Committee, Board Characteristics and Auditor Switch Decisions by Andersen's Clients , 2007 .

[32]  S. Chandrashekar,et al.  Women Power in Corporate India , 2011 .

[33]  Henry L. Tosi,et al.  Why Outsiders on Boards Can't Solve the Corporate Governance Problem , 2003 .

[34]  M. C. Jensen,et al.  THEORY OF THE FIRM: MANAGERIAL BEHAVIOR, AGENCY COSTS AND OWNERSHIP STRUCTURE , 1976 .

[35]  Renée B. Adams,et al.  Women in the Boardroom and Their Impact on Governance and Performance , 2008 .

[36]  Ronald J. Burke,et al.  Women on Corporate Boards of Directors: A Needed Resource , 1997 .

[37]  Y. Kor,et al.  Experience-Based Human Capital and Social Capital of Outside Directors , 2008 .

[38]  Albert A. Cannella,et al.  Strategic Leadership: Theory and Research on Executives, Top Management Teams, and Boards , 2008 .

[39]  M. Huse,et al.  The Contribution of Women on Boards of Directors: Going Beyond the Surface , 2010 .

[40]  James K. Brown,et al.  Corporate directorship practices : role, selection and legal status of the board , 1975 .

[41]  Jonas Gabrielsson,et al.  Understanding the leadership role of the board chairperson through a team production approach , 2007 .

[42]  W. Powell,et al.  The iron cage revisited institutional isomorphism and collective rationality in organizational fields , 1983 .

[43]  Mason A. Carpenter,et al.  Upper Echelons Research Revisited: Antecedents, Elements, and Consequences of Top Management Team Composition , 2004 .

[44]  Kevin Campbell,et al.  Gender Diversity in the Boardroom and Firm Financial Performance , 2008 .

[45]  John W. Meyer,et al.  Institutionalized Organizations: Formal Structure as Myth and Ceremony , 1977, American Journal of Sociology.

[46]  Ronald J. Burke,et al.  Women on Corporate Boards of Directors: The Canadian Perspective , 2008 .