Constructing a framework to measure the readiness of women to participate as directors in company boards

Abstract

This study draws from the Board Gender Diversity (BGD) theory; and is set out to investigate board gender diversity in South Africa with the intention to construct a framework to measure board-readiness of women. The study is centred on three research questions: (1) What are the board-readiness attributes that impact on women’s capacity to participate effectively on boards? (2) How do these attributes interrelate to explain women’s board-readiness? (3) Are there differences in board-readiness attributes between women and men? To address these questions three organisations from listed companies were selected from the oil and gas sector, as well as the mining and pharmaceutical sectors. A sequential mixed method design was followed whereby quantitative data collection was preceded by qualitative data collection. The purpose of this design was to facilitate data triangulation to enhance validity of the findings. Another reason for opting for a sequential mixed method was that, the quantitative study depended on insights and lived experiences of board members who were interviewed in the first phase of the study. Participants in the qualitative study comprised 11 board members with observable diverse attributes, including gender, qualification, race and technical background. The interview data was analysed used content analysis. This process generated 79 coded subcategories, which were consolidated into thirteen themes that were deemed as important board attributes by participants across the three case study organisations. These attributes include: (1) ambition; (2) qualification; (3) effort; (4) visibility; (5) industry experience; (6) exposure and international experience; (7) independence and courage to challenge status quo; (8) seizing opportunities; (9) board exposure; (10) unique value proposition; (11) presence, energy and agility; (12) understand unwritten rules; and (13) confidence and assertiveness. One hundred and ninety-three (n=193) respondents participated in the quantitative survey in the second phase of the study. Factor analysis was used to analyse the quantitative data. The prime purpose of factor analysis was to use a multivariate statistical method to identify and validate women board readiness attributes. Sixteen of these attributes were validated into a five-factor solution including: (1) preparatory and mastery themes; (2) courage and independence; (3) competency and membership; (4) international exposure and (5) industry experience. In constructing the board readiness framework, the attributes that emerged from the qualitative and quantitative data processes were fused to form a 44-item framework with ten dimensions. The last part of the chapter discusses the study limitations and avenues for further research.