Abstract/Summary

The paper aims to concurrently examine effects of knowledge-based diversity and gender diversity on firm process innovation. It also investigates board chairpersons' gender effect on these relationships using the categorization–elaboration model (CEM). The paper benefits from the survey method and applies structural equation modeling (SEM) to examine responses of 462 CEOs of publicly listed firms and private firms. We find that knowledge-based diversity has a more substantial impact on process innovation than gender diversity. Meanwhile, it is more likely for female board chairpersons to utilize gender diversity to improve firm process innovation. For male chairpersons, they are more likely to use knowledge-based diversity to improve process innovation. The finding suggests that social categorization processes based on gender matter to some extent. Practitioners should pay particular attention to the skills and quality makeup of boards while being cognizant of the varied support to gender diversity between female and male chairpersons.