Decomposing the Impact of Leadership Diversity Among Nonprofit Organizations

Abstract

Our contribution lies in exploring loci and reach of leadership diversity’s influence on proximal and distal performance outcomes to understand how and where these can be mobilized. Our moderated-mediation modeling decomposes the direct, indirect, and interaction effects of demographic diversity among three types of focal actors in governance—Boards (gender-, age-, and ethno-racial variety), Board Chairs (gender and ethno-racial demography), Chief Executives (gender and ethno-racial demography)—on five factors reflecting functional and social dimensions of Board Performance and two dimensions of Organizational Performance. We demonstrate that the Board composition affects proximal board performance outcomes, whereas CEO demography is more related to distal organizational performance outcomes. Board Chairs, a less-examined aspect of nonprofit governing, stand out as bridging both proximal and distal outcomes, both directly and through their interactions with Board diversity and CEO demography.