Board Culture Diversity and Tourism Financial Performance

Abstract: Grounded in cultural theories such as Organizational Culture Theory (OCT) and existing literature, this study examines the impact of Board Cultural Diversity (BCD) on Tourism Financial Performance (TFP). It also explores how firm-specific and national factors influence this relationship. Employing a regression model and a global tourism dataset, the findings reveal a positive correlation between BCD and TFP, suggesting that increasing cultural diversity enhances financial performance. Moreover, firm characteristics, along with national governance (NG) and national culture (NC), play significant controlling roles in this relationship. While firm-level factors generally have adverse effects, certain national factors positively influence the BCD-TFP nexus. Decision-makers can use these outcomes to strategically plan and restructure firm boards and management strategies to ensure better performance. The study contributes to the field by offering guidance for future research and advising regulatory bodies on enhancing cultural diversity, NG and NC to boost firm performance. The moderating or mediating roles of NG and NC on BCD present valuable opportunities for future research by scholars.

Keywords: Board Cultural Diversity, Financial Performance, National Governance, Culture and Tourism

JEL Classification Number: B26, G19, Z39