Assessing the effects of board structure and diversity on the performance and capability of companies in Iran: A case study of marketing capability in companies listed on the Tehran Stock Exchange

Document Type : Original Article

Authors
sara eftekharpour 1
younos vakil alroaia 2
farshad faezi 3
1 Ph.D. Student in Business Management, Semnan Branch, Islamic Azad University, Semnan, Iran.
2 Associate Prof. and chairman, Entrepreneurship and commercialization research center, Department of Management, Semnan Branch, Islamic Azad University, Semnan.
3 Associate Professor of Management, Semnan Branch, Islamic Azad University, Semnan.
Abstract
Marketing capability is seen as a competitive advantage for the company and reflects a company's specific ability to identify target markets and adopt strategies that maintain a relationship with loyal customers. Board Diversity and board structure is the factors that affect the marketing capability of the company. Therefore, using the data of companies active in food sector in the period 1389-1399, the effect of diversity and board structure on the marketing capability has been studied. Based on the research results, the board structure and diversity have a positive and significant effect on the marketing capability of the studied companies. Because the more non-executive members (or female board members) to the total number of board members, the better the company's performance and marketing capabilities will be. Also, the board of director's size, the firm's assets growth and the firm's age have a positive and significant effect on the marketing capability of companies. The variables of environmental forgiveness (industry growth) and the variables of turmoil (revenue fluctuations in the firm and industry) also had a positive, negative and significant effect on the marketing capability of the company, respectively. In addition, the interactive effects of the board structure with the turbulence and environmental forgiveness on the firm's marketing capability were negative and positive, respectively. In other words, the structure and board diversity can have a greater effect on the marketing capability of the company when the company's revenue fluctuations are low and environmental forgiveness and industry growth rate are higher.
Keywords
Board Diversity
Board Structure
Marketing Capability
Iran
Food Companies
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