Empowering Female Leadership for Enhanced Innovation Performance of Companies in Vietnam
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Abstract
This study examines the relationship between female board representation and firm innovation within Vietnam's private sector. It applies panel data from the World Bank Enterprise Survey for the years 2009, 2015, and 2023 to examine how having women on company boards influences innovation at the firm level. It employs a bivariate probit model and considers distinct characteristics of firms and industries. The findings reveal a significant positive association between female board representation and innovation, particularly in the initial stages of female board membership. However, the impact of female ownership on innovation is more complex, with higher levels of female ownership potentially leading to increased risk aversion. Additionally, firm size, growth, industry affiliation, and export orientation are identified as key determinants of innovation. This study contributes to the growing literature on gender diversity and innovation by providing empirical evidence from the Vietnamese context. It offers actionable insights for Vietnamese policymakers aiming to enhance private sector innovation and competitiveness by promoting gender diversity in corporate governance.
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