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HR on board! The implications of human resource expertise on boards of directors for diversity management
Author(s) -
Mullins Frank
Publication year - 2018
Publication title -
human resource management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.888
H-Index - 94
eISSN - 1099-050X
pISSN - 0090-4848
DOI - 10.1002/hrm.21896
Subject(s) - business , diversity (politics) , context (archaeology) , human capital , human resource management , agency (philosophy) , accounting , value (mathematics) , human resources , principal–agent problem , corporate governance , marketing , management , finance , economics , political science , sociology , paleontology , social science , machine learning , computer science , law , biology , economic growth
While prior board of director studies have considered the role of director occupational expertise in areas such as law and finance on the strategic actions of the firm, little consideration has been given to understanding the value that human resource expertise on boards of directors, or board HR expertise , can provide. Drawing upon agency and resource dependence theories, this study investigates the relationship between board HR expertise and the extent to which firms engage in diversity management. Furthermore, the moderating role of two organizational context factors—capital intensity and firm age—are considered, as these can highlight the degree to which firms strategically depend upon human capital. With a sample of 423 U.S. firms listed on the S&P 500 from 2002 to 2006, the findings indicate that firms with board HR expertise have stronger diversity management in comparison to firms lacking board HR expertise. Moreover, the positive effects of board HR expertise on diversity management decreases when firms’ capital intensity or age rises. This highlights the value that HR practitioners can provide in serving on boards of directors, and suggests that the magnitude of board HR experts’ influence hinges upon the firm's level of strategic dependence on human capital.