Influence of a board of directors age diversity on an organization’s innovation and performance trajectory

Abstract

One of the main objectives of most companies listed on the Johannesburg Stock Exchange is to perform well, thereby providing a return for shareholders who have invested their money therein. Coupled with that in recent years it has become critical for companies to remain innovative in order to stay up-to-date with the ever-increasing dynamic digital and technological advances. This study aims to explore how a board of directors' age diversity impacts an organization’s innovation and performance trajectory. Research has been lacking in this area. A qualitative approach was used to ensure a comprehensive overview of how diversity at the governance level can shape innovation processes. Interviews with 16 directors of companies listed on the Johannesburg Stock Exchange were conducted. For the most part it was evident that if collaboration occurs amongst diverse groups then there exists a high probability of reaping positive benefits for the business all round. This study has highlighted that a board should compromise of both the old and the old to reach potential innovation.